Just a moment...

Top
Help
×

By creating an account you can:

Logo TaxTMI
Call Us / Help / Feedback

Contact Us At :

E-mail: [email protected]

Call / WhatsApp at: +91 99117 96707

For more information, Check Contact Us

FAQs :

To know Frequently Asked Questions, Check FAQs

Most Asked Video Tutorials :

For more tutorials, Check Video Tutorials

Submit Feedback/Suggestion :

Email :
Please provide your email address so we can follow up on your feedback.
Category :
Description :
Min 15 characters 0/2000
Make Most of Text Search
  1. Checkout this video tutorial: How to search effectively on TaxTMI.
  2. Put words in double quotes for exact word search, eg: "income tax"
  3. Avoid noise words such as : 'and, of, the, a'
  4. Sort by Relevance to get the most relevant document.
  5. Press Enter to add multiple terms/multiple phrases, and then click on Search to Search.
  6. Text Search
  7. The system will try to fetch results that contains ALL your words.
  8. Once you add keywords, you'll see a new 'Search In' filter that makes your results even more precise.
  9. Text Search
Add to...
You have not created any category. Kindly create one to bookmark this item!
Create New Category
Hide
Title :
Description :
❮❮ Hide
Default View
Expand ❯❯
Close ✕
🔎 TMI Notes - Adv. Search
TEXT SEARCH:

Press 'Enter' to add multiple search terms. Rules for Better Search

Search In:
Main Text + AI Text
  • Main Text
  • Main Text + AI Text
  • AI Text
Law:
---- All Laws----
  • ---- All Laws----
  • Benami Property
  • Bill
  • Central Excise
  • Companies Law
  • Customs
  • DGFT
  • FEMA
  • GST
  • GST - States
  • IBC
  • Income Tax
  • Indian Laws
  • Money Laundering
  • SEBI
  • SEZ
  • Service Tax
  • VAT / Sales Tax
Types:
---- All Types ----
  • ---- All Types ----
  • Act Rules
  • Case Laws
  • Circulars
  • Manuals
  • News
  • Notifications
Sort By: ?
In Sort By 'Default', exact matches for text search are shown at the top, followed by the remaining results in their regular order.
Relevance Default Date
    Manuals Income Tax
    Whether the recognition of retention money, receipt of which is contingent on the satisfaction of ce...
    Manuals Income Tax
    Is it correct that even service providers are now required to record inventory?
    Manuals Income Tax
    Does ICDS II apply to the trader or dealer of livestock, agriculture and forest products mineral oil...
    Manuals Income Tax
    Does provisions of ICDS II apply to shares of a company in which public are not substantially intere...
    Manuals Income Tax
    Does the provisions of ICDS II apply on derivatives.
    Manuals Income Tax
    ICDS-I requires disclosure of significant accounting policies and other ICDS requires specific discl...
    Manuals Income Tax
    As per ICDS-I the Marked to Market loss or an expected loss shall not he recognized unless the recog...
    Manuals Income Tax
    Since ICDS is not applicable for the purposes of maintenance of books of account, then what is the p...
    Manuals Income Tax
    Where a term has not been defined under ICDS, nor under the Act, but has different interpretations g...
    Manuals Income Tax
    Does ICDS apply to computation of Minimum Alternate Tax (MAT) u/s 115JB of the Act or Alternate Mini...
    Manuals Income Tax
    In case of conflict between ICDS and other specific provisions of the Income-tax rules, 1962 governi...
    Manuals Income Tax
    Certain ICDS provisions are inconsistent with judicial precedents. Whether these judicial precedents...
    Manuals Income Tax
    Does ICDS apply for the purposes of computing exemption u/s 11 to 13.
    Manuals Income Tax
    Does ICDS apply to the applicability aspect of the TDS.
    Manuals Income Tax
    How will ICDS apply to companies which adopted Ind-AS. (Indian accounting standards)
    Manuals Income Tax
    Whether the provisions of ICDS shall apply to Banks, Non-banking financial institutions, Insurance ...
    Manuals Income Tax
    Whether ICDS is applicable to Non-Residents whose income is liable to be taxed at a flat rate of tax...
    Manuals Income Tax
    Can a assessee opt to change his method of accounting from mercantile to cash basis.
    Manuals Income Tax
    Can ICDS would apply to other categories of taxpayers whose income is taxed under presumptive tax sc...
    Manuals Income Tax
    Can a assessee can follow different methods of accounting for different sources of income under the ...
❯❯
Maximize Maximize Maximize
0 / 200
Expand Note
Add to Folder

No Folders have been created

+

Are you sure you want to delete "My most important" ?

NOTE:

Notes
Showing Results for :
Reset Filters
Results Found:
Show All Summaries Hide All Summaries
Manuals Income Tax
Show AI Summary
Retention money recognition as revenue requires reasonable certainty of ultimate collection under ICDS on construction contracts.
Retention money, as part of overall contract revenue under the ICDS on construction contracts, shall be recognised as revenue only when the contingency tied to performance is satisfied or there is reasonable certainty of its ultimate collection.
Manuals Income Tax
Show AI Summary
Inventory recording requirement under ICDS II now mandates service providers to maintain inventories and disclose valuation for tax purposes.
Service providers are required to maintain records of inventories under the ICDS II standard on valuation of inventories, extending mandatory inventory recognition, valuation and disclosure obligations to entities providing services for purposes of income computation.
Manuals Income Tax
Show AI Summary
Valuation of Inventories: ICDS II applies to traders and dealers of primary commodities while excluding producers.
ICDS II governs valuation of inventories for income computation and disclosure. The standard is excluded for a producer of primary goods like livestock, agricultural and forest products, mineral oils, ores and gases, but it applies to persons who trade or deal in those commodities; therefore the producer/dealer distinction determines whether ICDS II applies.
Manuals Income Tax
Show AI Summary
ICDS II valuation excluded for closely held company shares when ICDS VIII classifies them as securities outside its scope.
Shares of a company in which the public are not substantially interested are excluded from ICDS II valuation even if held as inventory, because ICDS VIII's definition of securities expressly includes such shares, placing them outside ICDS II's scope.
Manuals Income Tax
Show AI Summary
ICDS II applicability to derivatives: derivatives held as inventory fall under ICDS II because securities exclusion applies.
Where an assessee holds derivatives as part of inventory, the valuation and related provisions of ICDS II apply because the definition of securities in ICDS VIII expressly excludes derivatives, so such instruments are governed by the inventory valuation standard rather than the securities disclosure regime.
Manuals Income Tax
Show AI Summary
Disclosure of accounting policies: ICDS requires taxpayers to disclose net ICDS effect in returns and tax audit report.
ICDS I mandates disclosure of significant accounting policies and requires the net effect on taxable income from application of ICDS to be disclosed in the Return of Income; ICDS disclosures are to be made in the tax audit report in Form 3CD, with no separate disclosure requirement for persons not liable to tax audit.
Manuals Income Tax
Show AI Summary
Marked-to-market gain recognition: ICDS I's non-recognition rule for MTM loss applies equally to gains.
Recognition of marked-to-market losses or expected loss is disallowed under ICDS I unless permitted by other ICDS provisions; the same conditional rule applies mutatis mutandis to recognition of marked-to-market gains or expected profit, so gains or anticipated income may not be recognised for income computation unless another ICDS expressly authorises recognition.
Manuals Income Tax
Show AI Summary
Accounting Policies: treat ICDS I as computation policies affecting taxable income computation, not books of account.
ICDS I should be read as prescribing computation policies for taxable income so that accrual, going concern, consistency, substance over form and non recognition of mark to market losses apply to income computation under business or other sources, and the disclosure requirement concerns the policies used in computing income rather than the policies used for maintaining books of account.
Manuals Income Tax
Show AI Summary
Interpretation of undefined tax terms: ICDS provisions generally govern unless declared ultra vires by a competent authority.
Where a term in the ICDS coincides with terminology in Accounting Standards, the AS interpretation generally applies; where no AS analogue exists, judicial tax-law interpretations ordinarily govern. If a current ICDS provision conflicts with earlier AS or judicial interpretations, the ICDS provision will prevail for tax computation and disclosure unless declared ultra vires by a competent court or authority.
Manuals Income Tax
Show AI Summary
ICDS applicability: ICDS do not apply to MAT on book profit but apply to AMT on adjusted total income.
ICDS do not apply to MAT because MAT is computed on book profit as per the Profit and Loss Account under company law, with specific statutory adjustments; ICDS are not incorporated into that book profit basis. ICDS apply to AMT because AMT is calculated on adjusted total income derived from total income determined under the regular tax provisions, and ICDS affect that regular computation.
Manuals Income Tax
Show AI Summary
Income Computation standards: specific tax-rule provisions prevail over general ICDS when the two provisions conflict.
ICDS are subordinate general principles for computing income and do not override specific provisions of the Income-tax Rules; where a specific rule governs a particular circumstance, that rule prevails over any inconsistent ICDS guidance.
Manuals Income Tax
Show AI Summary
ICDS applicability may govern specified transactional tax issues, raising whether prior judicial precedents remain operative.
The ICDS, notified under section 145(2), are intended to standardise computation of business and other income for the transactional issues they address and apply to assessment years following notification. They were framed after reviewing judicial views to supply authoritative guidance where earlier judicial decisions arose without statutory standards; nevertheless, some ICDS provisions may conflict with those precedents, posing a question about which authority should prevail.
Manuals Income Tax
Show AI Summary
ICDS application: accounting standards govern business income computation for exempt trusts, triggering ICDS when commercial books are maintained.
ICDS do not apply to the standalone computation of exemption for charitable entities based on the commercial concept of income; however, when income is taxed under the regular heads, ICDS apply to income classified under Profits and Gains of Business or Profession and Income from Other Sources if books are kept on the mercantile system. If a trust carries on incidental business with separate books, business income must be computed on a commercial basis and ICDS apply to that business income despite entitlement to charitable exemption.
Manuals Income Tax
Show AI Summary
Applicability of ICDS may indirectly determine whether TDS provisions apply by altering gross receipts/turnover calculations.
ICDS influence the computation of gross receipts/turnover used to determine whether statutory TDS provisions apply; while ICDS govern income computation and not TDS rules, their application to receipts can indirectly change whether individuals, HUFs or presumptive taxpayers cross the turnover benchmarks that attract TDS obligations.
Manuals Income Tax
Show AI Summary
ICDS applicability: applies to taxable income computation under business or other income irrespective of Ind AS adoption.
For computing taxable income under the heads Profits and Gains of Business or Profession and Income from Other Sources, ICDS provisions govern determination of income irrespective of whether an entity follows erstwhile Accounting Standards or Ind AS for financial reporting; companies adopting Ind AS must apply ICDS adjustments when computing taxable income under those heads.
Manuals Income Tax
Show AI Summary
ICDS applicability clarified: sector-specific provisions and statutory overrides determine application to banks, insurers and financial firms.
ICDS apply generally for income computation unless an ICDS contains sector-specific provisions or the substantive law provides a special regime; ICDS VIII addresses banks and certain financial institutions, while statutory and regulatory accounting requirements for insurance business prevail over general ICDS provisions.
Manuals Income Tax
Show AI Summary
ICDS applicability to non-residents ensures income is determined under ICDS before flat-rate tax treatment on passive receipts.
ICDS applies to non-resident income taxed at a flat rate-such as interest, royalty and fees for technical services-because the flat tax is applied after determination of income, so Income Computation and Disclosure Standards govern measurement and recognition for computing taxable income.
Manuals Income Tax
Show AI Summary
Change of accounting method: an assessee may adopt cash basis if the change is bona fide and consistently applied thereafter.
An assessee may change the method of accounting from mercantile to cash basis if the change is bona fide and is followed regularly thereafter; such a change is distinct from a change in accounting policy and must be consistently applied to support proper income computation and disclosure.
Manuals Income Tax
Show AI Summary
ICDS revenue recognition applies to presumptive tax schemes computing income from gross receipts or turnover.
ICDS on revenue recognition applies to taxpayers under presumptive tax schemes when such schemes compute income by reference to gross receipts, turnover or similar revenue measures; absent an express exclusion, ICDS principles govern the computation of those receipts or turnover for income-tax computation and disclosure.
Manuals Income Tax
Show AI Summary
Accounting method application: ICDS governs sources using the mercantile system but not sources accounted on a cash basis.
ICDS applies at the source level: it governs only those sources where the assessee follows the mercantile (accrual) system of accounting and does not apply to sources maintained on the cash system, a distinction intended to prevent escapement of income caused by heterogeneous accounting across an assessee's activities.

TMI Notes

Back

All TMI Notes

Showing Results for :
Reset Filters
No Records Found

TMI Notes

Back

All TMI Notes

whatsapp Join Channel
Showing Results for : Reset Filters

Comparison of section 356 "Appealable orders before Joint Commissioner (Appeals)." between the Income-Tax Act, 2025 (as passed) and the Income-Tax Bill, 2025 (as originally introduced)

13 September, 2025

Contents
Acts
Rules & Regulations
Summary
Note

Note

-

Bookmark

Print

Print

Section 356 Appealable orders before Joint Commissioner (Appeals).

Income-tax Act, 2025

At a Glance

Clause 356 (Old Version) of the Income Tax Bill, 2025 (hereafter "Clause 356 (Old)"). It sets out appealability to the Joint Commissioner (Appeals) against certain orders of Assessing Officers below the rank of Joint Commissioner. It matters to assessees and the tax department (appeals cadre); affected parties include individual and entity taxpayers, and assessing/deductor/collector authorities where specified. Effective date or decision date: Not stated in the document.

Background & Scope

Statutory hooks: Clause 356 (Old) is placed in Chapter XVIII (APPEALS, REVISIONS AND ALTERNATE DISPUTE RESOLUTIONS), Part A.- Appeals, I.-Appeals to Joint Commissioner (Appeals) and Commissioner (Appeals). It addresses appealable orders before the Joint Commissioner (Appeals). Definitions: the clause includes a definition of "status" by reference to section 2(77). Other definitions or scope-limiting language: Not stated in the document beyond the text of Clause 356 itself.

Statutory Provision Mode

Text & Scope

Clause 356 (Old) provides that any assessee aggrieved by specified orders of an Assessing Officer (below the rank of Joint Commissioner) may appeal to the Joint Commissioner (Appeals). The enumerated appealable orders under sub-section (1) are:

  • (a) Intimation u/s 270(1) or 399(1) where the assessee objects to the making of adjustments;
  • (b) Order u/s 270(10) or 271 where the assessee objects to assessed income, determined tax, computed loss, or status;
  • (c) Order of assessment, reassessment or recomputation u/s 279;
  • (d) Order u/s 398;
  • (e) Order imposing penalty under Chapter XXI;
  • (f) Order u/s 287 or 288 amending any of the orders or intimations in clauses (a) to (e).

Sub-section (2) bars appeals where the impugned order is passed by or with the prior approval of an income-tax authority above the rank of Deputy Commissioner.

Sub-section (3) empowers the Board (or income-tax authority authorised by the Board) to transfer appeals between Commissioner (Appeals) and Joint Commissioner (Appeals), with the transferee continuing from the stage at which it was transferred.

Sub-section (4) mandates that where an appeal is transferred under sub-section (3), the appellant shall be given an opportunity of being reheard.

Sub-section (5) permits the Central Government to notify a scheme to dispose of appeals expeditiously "by eliminating the interface between the Joint Commissioner (Appeals) and the appellant, to the extent technologically feasible" and to direct that provisions relating to jurisdiction and procedure "shall not apply or shall apply with exceptions, modifications and adaptations."

Sub-section (6) allows the Board to specify that any provisions of this section shall not apply to any case or class of cases.

Sub-section (7) defines "status" by reference to section 2(77).

Interpretation

The text prioritises a statutory right of appeal for assessees from subordinate assessing officers' orders to the Joint Commissioner (Appeals) within specified categories. The presence of transfer powers (sub-section (3)) and rehearing requirement (sub-section (4)) suggests legislative intent to permit administrative flexibility while preserving procedural fairness. The scheme power in sub-section (5) reflects an intent to modernise and streamline appeal disposal (including technological interface reduction), and to permit modifications of jurisdictional/procedural rules to achieve that aim. Beyond these textual indicators, legislative purpose or debates are Not stated in the document.

Exceptions/Provisos

Key exceptions included within the clause:

  • Sub-section (2): No appeal to Joint Commissioner (Appeals) if the order was passed by or with prior approval of an authority above Deputy Commissioner.
  • Sub-section (5): Central Government may supersede certain procedural/jurisdictional provisions via notified scheme.
  • Sub-section (6): Board may carve out cases or classes of cases to which the section will not apply.

Illustrations

  • Example 1: A taxpayer objects to an adjusting entry in an intimation u/s 270(1) - under Clause 356 (Old) they may appeal to the Joint Commissioner (Appeals). (Illustrative facts not detailed in the document.)
  • Example 2: A taxpayer dissatisfied with a reassessment order u/s 279 - appealable to the Joint Commissioner (Appeals). (Not stated in the document whether time limits or form are prescribed.)

Interplay

Clause 356 (Old) cross-refers to multiple other provisions (sections 270(1), 399(1), 270(10), 271, 279, 287, 288, 398, Chapter XXI penalties, and section 2(77)). It creates transferability with Commissioner (Appeals) and contemplates a Central Government scheme that may alter application of other provisions of the Act relating to jurisdiction and procedure. Specific Rules/Notifications/Circulars that interpret or implement these powers are Not stated in the document.

Differences between Clause 356 (Old) and Section 356 (Act)

Summary of textual differences and their practical impact (based strictly on the two provided texts):

  • Who may appeal: Clause 356 (Old) uses the phrase "Any assessee, aggrieved by ..." (Document 2). Section 356 (Act) expands the class to "Any assessee or any deductor or any collector, aggrieved by ..." (Document 1).
    • Practical impact: the Act expressly allows deductors and collectors to appeal; the Bill's older text limited appeals explicitly to assessees only. This expansion in the Act broadens standing to appeal to include persons who operate as deductors/collectors, increasing potential appellants and workload for the appellate authority.
  • Clause (a) - nature of objection: Clause 356 (Old) states "where the assessee objects to the making of adjustments"; Section 356 (Act) states "where the assessee or deductor or collector objects to the adjustments made therein."
    • Practical impact: the Act clarifies and modernises language, aligning with inclusion of deductors/collectors and framing objection to adjustments already made ("adjustments made therein") rather than merely "making of adjustments," which may narrow ambiguity about timing/context of objection.
  • Sub-section (1) opening phrase and inclusivity of clauses: Clause 356 (Old) lists only "Any assessee, aggrieved..." and the clause (f) refers to "any of the orders or intimations in clauses (a) to (e)." Section 356 (Act) mirrors the structure but, because it includes deductor/collector, clause (f) references clauses (a) to (e) similarly.
    • Practical impact: principally the same technical catch-all for amendments to orders; effect depends on expanded class of appellants in the Act.
  • Sub-section (3)(a) drafting order and punctuation: Clause 356 (Old) text reads that Board may transfer "any appeal filed against an order referred to in sub-section (1) and any matter arising out of or connected with such appeal, which is pending before the Commissioner (Appeals), to the Joint Commissioner (Appeals);" Section 356 (Act) reverses subordinate phrase order: "any appeal filed against an order referred to in sub-section (1), which is pending before the Commissioner (Appeals), and any matter arising out of or connected with such appeal and which is so pending, to the Joint Commissioner (Appeals);"
    • Practical impact: mostly drafting clarity; Section 356 (Act) is marginally clearer about pendency and connected matters, reducing potential ambiguity over what may be transferred.
  • Definition of "status": Clause 356 (Old) states "In this section, 'status' means the category of person as defined in section 2(77) ..." while Section 356 (Act) states "For the purposes of this section and section 357, 'status' means the category of person as defined in section 2(77) ..."
    • Practical impact: the Act expressly links the meaning to section 357 as well; this ties interpretive clarity across adjacent provisions and may affect cross-reference interpretation.

Practical Implications

  • Compliance and risk areas: The clause delineates which subordinate assessing officer orders are appealable; practitioners must map disputes to the listed heads (intimations/assessment/reassessment/penalties/amendments). The allowance for transfers and scheme-based alterations means uncertainty may arise as to which forum will hear the appeal; clients should monitor Board notifications and Central Government schemes. Time limits, forms, or procedural requirements are Not stated in the document.
  • Record-keeping/evidence points: Given the appealability of adjustments and amended orders, maintaining clear audit trails for adjustments in intimations (section 270(1)/399(1)), reasons for reassessment, and any correspondence authorising amendments u/ss 287/288 will be important. The document itself does not prescribe specific records.

Key Takeaways

  • Clause 356 (Old) grants a statutory right of appeal to the Joint Commissioner (Appeals) for assessees against specified orders of Assessing Officers below Joint Commissioner rank.
  • The provision enumerates specific appealable orders: intimations involving adjustments, orders under specified assessment and penalty sections, and amendments u/ss 287/288.
  • Appeals are barred where the impugned order was passed by or with prior approval of an authority above Deputy Commissioner.
  • The Board/Central Government are empowered to transfer appeals between appellate authorities and to notify schemes that may alter procedural and jurisdictional rules, including technological interface elimination.
  • The clause defines "status" by reference to section 2(77), but other interpretive aids, time-limits, forms, and procedural details are Not stated in the document.

Full Text:

Section 356 Appealable orders before Joint Commissioner (Appeals).

Topics

Acts Income Tax