CBDT specifies manner for constitution of collegium to decide deferment of appeals u/s 158AB

Order F.no. 370133/13/2022-TPL, dated 28-09-2022

The Finance Act, 2022 inserted a new section 158AB to avoid duplicity of appeal before judicial forums. Said section provides that in a case of an assessee wherein the question of law arising from an order of Commissioner (Appeals) or the ITAT for a particular assessment year is identical to a question of law that is pending before jurisdictional High Court or the Supreme Court in:

(a) assessee’s own case for any other assessment year; or

(b) any other assessee’s case for any assessment year,

Then, the assessing officer shall not file an appeal before the jurisdictional High Court or the ITAT. The Assessing Officer shall instead file an application to the jurisdictional High Court or the ITAT that the appeal on the question of law in the assessee’s case may be filed when the decision on such question of law, in the other case, becomes final.

To decide whether the question of law is identical or not, the provision entrusts the same to the collegium, which shall comprise two or more Chief Commissioners or Principal Commissioners or Commissioners, as may be specified by the Board.

To decide on deferment of appeals, the Central Board of Direct Taxes (CBDT) has specified that a Collegium shall be constituted by:

(a) Pr. Chief Commissioner of Income-tax Transfer Pricing (International Tax and Transfer Pricing) for appeals in jurisdiction related to International Taxation and Transfer Pricing;

(b) Pr. Chief Commissioner of Income-tax (Exemptions) for appeals in jurisdiction related to Exemption Charge;

(c) Chief Commissioner of Income-tax (Central) or DGIT (Inv) for appeals in jurisdiction related to Central Charge; and

(d) Pr. Chief Commissioner of Income-tax (CCA) for appeals in the jurisdiction in all other cases.

Further, the Collegium shall comprise three members who are officers of the rank of Principal Commissioner of Income-tax (PCIT) or Commissioner of Income-tax (CIT).

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