Appellate jurisdiction over Chapter XXI penalty orders lies with the Commissioner (Appeals), not the Tribunal.

Penalty orders under Chapter XXI for delay in filing Annual Information Returns were held not appealable to the Tribunal because the statutory scheme did not confer jurisdiction on it. The proper appellate forum was the Commissioner (Appeals), since the Income-tax Act specifically permits an appeal against such penalty orders to that authority. As a result, the Tribunal declined to entertain the appeals and accepted the jurisdictional objection, leaving the assessee to pursue the statutory remedy before the Commissioner (Appeals).

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Issues: Whether the Income Tax Appellate Tribunal had jurisdiction to entertain an appeal against penalty imposed under section 271FA of the Income-tax Act, 1961, and whether such appeal lay instead to the Commissioner (Appeals).

Analysis: The appeal was against an order imposing penalty under Chapter XXI for delay in filing Annual Information Returns. The statutory scheme of section 253 of the Income-tax Act, 1961, did not confer appellate jurisdiction on the Tribunal for such an order. By contrast, section 246A(1)(q) specifically permitted an appeal to the Commissioner (Appeals) against an order imposing penalty under Chapter XXI. On this basis, the Tribunal held that it lacked jurisdiction to entertain the appeals.

Conclusion: The appeals were not maintainable before the Tribunal and the assessee was required to pursue the remedy before the Commissioner (Appeals). The objection to jurisdiction was accepted against the assessee.

Ratio Decidendi: Where the statute expressly provides an appeal to the Commissioner (Appeals) against a penalty order under Chapter XXI and does not confer corresponding jurisdiction on the Tribunal, the Tribunal cannot entertain the appeal.

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