2022 (12) TMI 1071 - AT - Income Tax

Direct appeal on tax penalty dismissed, must first go to Commissioner (Appeals)

Desmond Savio Theodore Fernandes Versus. Income Tax Officer, 34 (1) Mumbai

Desmond Savio Theodore Fernandes Versus. Income Tax Officer, 34 (1) Mumbai - TMI Issues:1. Jurisdiction of filing appeal under section 270A of the Income Tax Act, 1961 directly before the Income Tax Appellate Tribunal without approaching the Commissioner (Appeals) first.Analysis:The appeal in question was filed against a penalty order under section 270A of the Income Tax Act, 1961, directly before the Income Tax Appellate Tribunal. The Departmental Representative pointed out that the appellant should have approached the Commissioner (Appeals) first. The appellant's counsel argued that Section 246A does not mention orders passed under section 270A as appealable before the Commissioner (Appeals), while Section 253(1)(a) specifically refers to such orders before the Tribunal. However, it was clarified that Section 246A(1)(q) includes orders imposing penalties under chapter XXI, covering sections 270 to 275, which includes section 270A. Therefore, the appeal against a penalty order under section 270A should have been filed before the Commissioner (Appeals) first.The Tribunal explained that the appealable orders under section 253(1)(a) refer to orders passed by the Commissioner (Appeals) and not the Assessing Officer. The appellant's misunderstanding, although genuine due to limited experience, was deemed incorrect. The Tribunal concluded that the appeal filed directly before them was not maintainable in law. The appellant's counsel requested to file the appeal before the Commissioner (Appeals) and assured that the error was made in good faith without prejudice to the assessee's interests.The Tribunal directed the appellant's counsel to file the appeal before the Commissioner (Appeals) with a condonation petition explaining the delay. It emphasized that the Commissioner (Appeals) should decide on the matter in accordance with the law and provide a reasonable opportunity to the assessee. As there was no cause for immediate interference by the Tribunal, the appeal was dismissed as non-maintainable. The Tribunal left the matter for the Commissioner (Appeals) to address further.In conclusion, the Tribunal clarified the correct jurisdiction for filing appeals under section 270A, highlighting the necessity to follow the proper legal procedures and hierarchy in tax matters to ensure fair and lawful proceedings.