Income Tax Appellate Tribunal

Income Tax Appellate Tribunal Latest News

Recently, the Chief Justice of India praised the Income Tax Appellate Tribunal (ITAT) for its significant contribution to the justice delivery system which marked its 84th anniversary.

About Income Tax Appellate Tribunal

• It is a quasi-judicial institution set up in January, 1941 and specializes in dealing with appeals under the Direct Taxes Acts. 
• It was started in 1941 with six Members constituting three Benches – one each at Delhi, Kolkata (Calcutta), and Mumbai (Bombay).
• Presently ITAT has 63 Benches at 27 different cities, covering almost all the cities having a seat of the High Court.
• Nodal Ministry: It functions under the Ministry of Law and Justice. 

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Composition of Income Tax Appellate Tribunal

• The President of the ITAT constitutes a bench from among the members of the ITAT.
• Each bench has an accountant member and a judicial member.
• In some cases, a special bench with three or more members may be constituted to dispose of income tax appeals.

Functions of Income Tax Appellate Tribunal

• It adjudicates appeals made under the Income Tax Act of 1961.
• It hears appeals concerning orders passed by the income-tax authorities.
• ITAT serves as the final fact-finding body in tax disputes, offering both taxpayers and the income tax authorities a convenient platform to resolve disputes.
• It is the second forum to hear income-tax appeals after the Commissioner of Income-tax (Appeals)
• ITAT functions under the regional High Court’s jurisdiction and must adhere to the rules of the same.
• ITAT is subordinate to both the region’s High Court and the Indian Supreme Court.

Who can File an Appeal in ITAT?

• A tax appeal can be filed by a taxpayer who does not agree with the assessment order or any other order, passed by an income-tax authority.
• An appeal before the ITAT is generally filed by the taxpayer to contest any order passed by the Commissioner of Income-tax (Appeals).
• Similarly, an income-tax department can also file an appeal against any order passed by the Commissioner of Income-tax (Appeals) before the ITAT.
• The orders passed by the ITAT are final. An appeal lies to the High Court only if a substantial question of law arises for determination.

Source: PIB