Alerts: Direct Tax Alert - CBDT specifies the cases not to be disposed of under the E-Appeals Scheme, 2023

Section 246(5) of the Income-tax Act, 1961 (IT Act) grants the Central Government the authority to establish a scheme that expedites the resolution of appeals with transparency and accountability by reducing the interaction between the Joint Commissioner of Income-tax (Appeals) (JCIT(A)) and taxpayers, to the extent technologically feasible. 

To implement this, the Central Board of Direct Taxes (CBDT) introduced the e-Appeals Scheme, 2023 (the Scheme) for JCIT(A), as notified in their official communication1. 

Additionally, section 246(6) of the IT Act empowers the CBDT to specify cases or situations where the provisions of the Scheme shall not be applicable. 

In line with this, the CBDT recently issued order 2 specifying the cases exempted from the Scheme's provisions. However, we have mentioned below some of the significant instances in which the scheme shall not be applicable.

 

  1. Appeals against orders issued prior to 13 August 2020 under section 143(3) or section 144 of the IT Act, where the disputed demand exceeds INR 1 million, are eligible for consideration.
  2. Appeal against the penalty order passed before 12.01.2021 with respect to point 1 above.
  3. Appeals related to

 

  • Orders issued in cases related to the jurisdiction of the Commissioner of Income-tax (Central).
  • Assessments are conducted as a result of a search under section 132 or requisition under section 132A of the IT Act.
  • Assessments carried out as a consequence of any action under section 133A4 of the IT Act.
  • Assessments in which there is an addition or alteration in income based on material that has been seized or impounded.

     4. Appeals concerning the jurisdiction of the Commissioner of Income-tax (International Taxation).

     5. Appeals against penalty orders issued in cases specified in points 3 and 4 were mentioned earlier.

     6. Appeals against orders issued on or after 12 September 2019 under the e-assessment scheme, 2019, the Faceless Assessment Scheme, 2019,             or section 144B5 of the IT Act.

     7. Appeals against penalty orders issued on or after 12 January 2021 under the Faceless Penalty Scheme, 2021.

All appeals not falling within the categories listed in points 1 to 7 above, as per section 246 and/or clauses (a), (b), (c), (ha), (hb), (q) of section 246A(1) of the IT Act, will be processed in accordance with the provisions of the Scheme.

Also Read: ITAT Accepts Appellant's Evidence, Removes Cash Deposit Addition