F.No.370142/8/2018-TPL

Government of India

Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

(TPL Division)

***

New Delhi, June 13, 2018

 Sub.: Draft notification proposing amendments in rule 47 of the Income- tax Rules, 1962, Form of appeal to the Appellate Tribunal (Form No.36) and Form of memorandum of cross-objections to the Appellate Tribunal (Form No.36A)- reg.

Section 253 of the Income-tax Act, 1961 (the Act) provides for filing of appeals to the Income Tax Appellate Tribunal (the Tribunal) in respect of the orders specified therein. Sub-rule (1) of rule 47 of the Income-tax Rules, 1962 (the Rules) inter alia provides that an appeal under sub-section (1) or sub-section (2) of section 253 to the Appellate Tribunal shall be made in Form No. 36. Further, sub-rule (2) of the said rule inter alia provides that a memorandum of cross-objections under sub-section (4) of section 253 to the Appellate Tribunal shall be made in Form No.36A.

2. Form No.36 (Form of Appeal to the Appellate Tribunal) was last amended vide IT (Fifteenth Amendment), Rules, 1993. Similarly, since its introduction, no amendment has been carried out in Form No. 36A (Form of Memorandum of cross-objections to the Appellate Tribunal). The existing Form No.36 and Form No. 36A do not capture the data regarding amount disputed in pending appeals before ITAT. The information regarding the amount disputed in appeal is vital for designing the policy of the department for litigation management. Therefore, in order to capture the recent developments, it is imperative to rationalise these Forms, so as to make these forms descriptive and informative.

3. It may also be mentioned that sub-rule (1) and sub-rule (2) of rule 47 provide inter alia that where the appeal/memorandum of cross objection is made by the assesse, the form of appeal/ cross objection, the grounds of appeal/ cross objection and the form of verification appended thereto shall be signed by the person specified in sub-rule (2) of rule 45. In this regard, it may be mentioned that rule 45 has been substituted by IT (Third Amendment), Rules, 2016, w.e.f 1.3.2016. Therefore, consequential amendment in rule 47 is required to be carried out.

4. In view of the above, it is proposed that Income-tax Rules, 1962 may be amended to:-

(i) substitute reference of sub-rule (2) of rule 45 by sub-rule (3) of rule 45 in sub-rule (1) and sub-rule (2) of rule 47.

(ii) substitute existing Form No.36 and Form No.36A with the new Forms, so as to capture inter alia details about appellant, respondent, pending appeals, amount disputed in appeal or cross-objections.

5. The draft proposal is as under:

“1. In the Income-tax Rules, 1962,:-

(i) in rule 47, in sub-rule (1) and sub-rule (2), for the words, brackets and figure “ sub-rule (2)”, the words, brackets and figure “sub-rule (3)” shall be substituted;

(ii) in Appendix II, :-

(a) for Form 36 and notes thereto, following shall be substituted, namely:-

7. The comments and suggestions of stakeholders and general public on the above draft notification are invited. The comments and suggestions may be sent electronically by 2nd July, 2018 at the email address, [email protected]

(Dr. T.S.Mapwal)

Under Secretary (TPL-IV)

Tel: 011-23095471

Email: [email protected]

Income-tax Rules amendment: replace Form 36/36A and update rule 47 signatory reference to capture disputed amounts. The draft substitutes references to sub-rule (2) of rule 45 with sub-rule (3) in rule 47(1) and (2) and replaces Form Nos. 36 and 36A with new forms that collect detailed appellant/respondent data, pending appeal particulars, and the amount disputed and payable in respect of disputed items to support litigation management.