CBDT Notifies e-Appeals Scheme, 2023 | Implements Functioning of JCIT(A)

Notification No. 33/2023, dated 29-05-2023

The Finance Act 2023 introduced a new designated income tax authority of Joint Commissioner (Appeals) [JCIT (Appeals)] vide amendment in section 246 to handle a certain class of cases involving small appeal disputes.

To implement the functioning of the JCIT (Appeals), the Central Board of Direct Taxes (CBDT) has rolled out e-Appeals Scheme, 2023, effective from 29-05-2023. The Scheme enlists the scope, procedure to be adopted, penalty proceedings, rectification proceedings, and other provisions to ease the implementation.

The key highlights of the Scheme are mentioned in the below paragraphs:

(a) Scope of the Scheme

The Scheme shall be applicable to such persons or class of persons covered under section 246 of the Income-tax Act.

(b) Allocation of appeals

The Principal Director General of Income-tax (Systems) or the Director General of Income tax (Systems), as the case may be, shall devise a process to randomly allocate or transfer the appeals to the JCIT (Appeals).

(c) Procedure in appeal

The sixth paragraph of the Scheme delineates the comprehensive procedural requirements that the JCIT (APPEALS) must adhere to. Several of these procedures include:

• On assignment of appeal, the JCIT (Appeals) shall issue a notice to the appellant asking him to file his submissions within the prescribed time. He shall also issue a copy of such notice furnished to the Assessing Officer (AO).
• JCIT (Appeals) may obtain further information, document or evidence from the appellant or any other person. Further, may obtain a report of AO on the grounds of appeal or information, document or evidence furnished by the appellant.
• The appellant may file additional grounds of appeal to the JCIT (Appeals). The AO may request the JCIT (Appeals) to direct the production of any document or evidence, or the examination of any witness, as may be relevant to the appellate proceedings.
• The JCIT (Appeals) shall prepare a show-cause notice containing the reasons if he intends to enhance an assessment or a penalty or reduce the refund amount.
• The JCIT (Appeals) shall prepare an appeal order in accordance with the provisions of section 251 stating the points for determination, the decision thereon and the reason for the decision.

(d) Penalty proceedings

For non-compliance with any notice, direction or order, the JCIT (Appeals) is authorised to issue a show-cause notice for initiating the penalty proceedings. After considering all the relevant materials and response to the notice issued, he shall prepare a penalty order or drop the penalty proceedings as the case may be.

(e) Rectification proceedings

To rectify any mistake apparent from the record, JCIT (Appeals) can amend any order upon receiving an application from the appellant or the Assessing Officer. After examining the application, providing the opportunity of being heard by both parties and considering all the relevant material on record, he shall issue an order to rectify the mistake or reject the application.

(f) Appellate Proceedings

An appeal against an order passed by the JCIT (Appeals) shall lie before the Income Tax Appellate Tribunal having jurisdiction over the jurisdictional Assessing Officer of the appellant-assessee.

(g) No personal appearance under the Scheme

The Scheme clarifies that a person shall not be required to appear either personally or through an authorised representative in connection with any proceedings under this Scheme. However, a request for a personal hearing can be made, which can be conducted through video conferencing or video telephony.

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