Income Tax Appeals To The High Court

Taxpayers have the right to file an appeal with the High Court if they disagree with the Appellate Tribunal’s decisions. Not every appeal is heard in the hallways of the Supreme Court. The High Court will hear an appeal if and only if it believes the matter presents a serious point of law. When an assessee disputes the applicability of any particular legal provision included in the Income Tax Act, a question of law is regarded to have arisen.

The High Court’s role in income-tax appeals is restricted. The matter is only being pursued by the High Court based on qualifying legal questions. The High Court, on the other hand, has jurisdiction to consider any additional substantial matter of law that has not been formulated by it, provided that the Court is satisfied that the appeal allows for the relevant questions.

The reasons for pursuing any other legal question must be recorded by the Court. Taxpayers should be aware that the High Court has the authority to recall any orders issued by any other bench of the High Court if the adequate cause is established for the order’s enactment.

Petitions For Writs

The Assessee or the Commissioner of Income Tax may file an appeal with the High Court. In such cases, the Act may deny the assessee or the commissioner the right to appeal. However, the concerned person has the option of filing a writ petition, which serves as a substitute for the appeal.

Conditions For Filing An Income Tax Appeal

Income Tax Appeals To The High Court

The following are the prerequisites for filing an appeal with the High Court:

  1. If the Principal Chief Commissioner/Chief Commissioner/Principal Commissioner/Commissioner/assessee is dissatisfied with the Appellate Tribunal’s decision, he or she may initiate an appeal with the High Court.
  2. The time limit for filing an appeal is 120 days from the date of the Tribunal’s order.
  3. The appeal must be accompanied by the payment of a fee.
  4. It should take the form of a memorandum of appeal, outlining the legal issue at hand.

Condonation Of Delay

  • The High Court has the authority to excuse the assessee’s delay if the reasons cited by the assessee are satisfactory. Furthermore, the High Court is not supposed to hear the department’s delayed appeals in a case with such high stakes. In this case, the High Court may consider imposing penalties for the delay and deciding the appeals on the merits.
  • The High Court shall formulate the specific question if it is satisfied that it is involved in a serious point of law.
  • The appeal hearing must adhere to the question as formulated. The High Court may, however, formulate other relevant substantial legal questions, the reasons for which must be noted.
  • Following the hearing of the appeal, the respondents have the right to discuss the legitimacy of the question in the case.
  • The High Court may decide any issue not decided by the Appellate Tribunal or any issue decided incorrectly by the Tribunal on any material question of law about an income tax appeal. On the other hand, the High Court does not have the authority to rule on a subject that was not addressed before the Tribunal.
  • The applicable provisions of the Code of Civil Procedure, 1908 apply equally to an income tax appeal to the High Court under Section 260A.

Number Of Judges And Decision-Making

Income Tax Appeals To The High Court

During the hearing of the income tax appeal, a minimum of two judges must be present, and the result will be decided based on the majority’s opinion if any. When the opinions do not reach a majority, the Judges will declare their disagreement in the presence of one or more other judges.