TaxTMI 
TaxTMI 
TaxTMI 
In view of the pile up of cases at the CIT(A) stage, the Finance Act 2023 had inserted a new section 246 in Chapter XX with effect from 01- 04-2023 for filing of appeal before the Joint Commissioner of Income-tax (Appeals) [JCIT (Appeals)]. An assessee can prefer an appeal with the JCIT (Appeals) against the following orders relating to the assessment:
(a) An intimation issued under Section 143(1)
(b) Order passed u/s 143(3) or best judgment order u/s 144
(c) Order of assessment, reassessment or recomputation under Section 147;
(d) Intimation u/s 200A (1), i.e., processing of TDS statement;
(e) Intimation u/s 206CB(1), i.e., processing of TCS statement;
(f) Intimation u/s 206C(6A) treating a collector of TCS as assessee-in-default;
(g) Order u/s 201 treating a deductor as an assessee in-default;
(h) An order imposing a penalty under Chapter XXI (Section 270A to 275); and
(i) Rectification u/s 154 or 155 amending any of the orders mentioned above. As per Section 250(6A), the JCIT (Appeals) and Commissioner (Appeals) may decide the appeal within 1 year from the end of the FY in which the appeal was filed u/s 246(1)/(2)/(3) or 246A(1).
Vide Notification No. 32/2023 dated 29th May 2023, Rule 45 and Form 35 have been amended to be applicable for filing Appeal before the JCIT(A) also and Rule 46A has been amended to provide the grounds for admitting evidences other than those evidences taken up in prior stage.
Further to implement the functioning of the JCIT (Appeals), the CBDT has rolled out e-Appeals Scheme, 2023, effective from 29-05-2023 vide N No 33/2023. The key highlights of the Scheme are:
1. Important is that the communication between the JCIT(A) and assessee is viding the Income Tax Portal and not through the NFAC, which shall make the communication more smooth and quicker.
2. Allocation to JCIT(A) random - The Pr DGIT(Systems) or the DGIT (Systems), shall devise a process to randomly allocate or transfer the appeals to the JCIT (A).
3. Procedures which JCIT(A) should adhere to are as follows:
A. The appellant would get a notice from JCIT(A) to file his submissions within the prescribed time. A copy of such notice shall also be furnished to the AO.
B. JCIT (A) may seek further information, document or evidence from the appellant or any other person. A report of AO on the grounds of appeal or information, document or evidence furnished by the appellant may be required too.
C. Both the appellant or AO may file additional grounds of appeal or any document or evidence, or the examination of any witness may be requested, but subject to Rule 46A
D. The JCIT (A) shall prepare a SCN containing the reasons if he intends to enhance an assessment or a penalty or reduce the refund amount.
E. The JCIT (A) shall prepare an appeal order in accordance u/s 251 stating the points for determination, the decision thereon and the reason for the decision.
F. For non-compliance with any notice, direction or order, the JCIT (A) is authorised to issue a SCN for initiating the penalty proceedings. After considering all the relevant materials and response to the notice issued, he shall prepare a penalty order or drop the penalty proceedings as the case may be.
G. To rectify any mistake apparent from the record, JCIT (A) can amend any order upon receiving an application from the appellant or the AO. An appeal against an order passed by the JCIT (A) under this scheme shall lie before the Jurisdictional ITAT.