TaxTMI 
TaxTMI 
Jurisdiction of Commissioners of Income-tax (Appeals)--Section 246(2) of the I.T. Act--Board's notification No. 2381* dated 7-7-78, and notification No. 2845+ dated 4-6-79--Clarification regarding
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.... Sir, Subject:--Jurisdiction of Commissioners of Income-tax (Appeals)--Section 246(2) of the I.T. Act--Board's notification No. 2381* dated 7-7-78, and notification No. 2845+ dated 4-6-79--Clarification regarding. Certain jurisdictional problems in regard to the interpretation of the provisions of section 246(2) of the I.T. Act and of the corresponding sections of other Direct Tax Acts, and also in regard to the scope of the Board's Notifications issued under section 246(2)(i) have been referred to the Board for clarification. They are posited in the form of questions and answered here under:- Question 1 (a) Who is to rectify any mistake in an order passed by the AAC before the appointed day, i.e., 10-7-78, in a case of a non-com....
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.... other direction given by the Tribunal. The words 'any action required to be taken' connote that the requirement for any action to rectify a mistake in an order passed by the AAC before the appointed day would arise after the said date. Those words in section 39(2) of the Finance Act, 1977, would cover cases where the rectification application had been filed after the appointed day or the AAC had issued the show cause notice on his own after that date. As for rectification application filed or show cause notice for rectification issued before the appointed day, the normal rule in section 154 that the authority may amend any order passed by him would apply and the same AAC or any other AAC presently having jurisdiction in respect of th....
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.... (e) of section 246(2) (before its deletion, w.e.f. 1-6-79) and in the Board's Notification dated 7-7-78? Does it mean total income determined after set-off of brought forward losses, unabsorbed depreciation, development rebate, etc.? (b) Who is to deal with an appeal in the case of a non-company assessee where the business loss of the concerned year is less than Rs. 1 lakh, but the amounts of brought forward loss, unabsorbed depreciation, unabsorbed development rebate or deficiency under section 80J(3) of that year, if aggregated with the business loss exceed Rs. 1 lakh? Answer: (a) Under sections 143 and 144 the ITO makes the assessment of the total income or loss. Clause (e) of section 246(2) and item (ii) of the notification refer....
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....Under the powers vested in the Board under section 246(2)(i), the Board having regard to the nature of the cases, the complexities involved and other relevant considerations, notified the case of foreign companies, domestic companies whose assessed total income or loss exceeded Rs. 5 lakhs and the cases of assessees (other than a company) with assessed total income or loss exceeding Rs. 1 lakh as "such person or classes of persons" who would file appeal to the CIT (Appeals) against an order of the ITO specified in items (i), (ii) and (iii) of the notification (No. 2381** dated 7-7-78). There is no further stipulation that an appeal against an ancillary order like penalty, rectification, etc., mentioned in clauses (d) to (o) of sub-section (....