TMI BlogINSTRUCTIONS REGARDING STANDARD OPERATING PROCEDURE ON FILING OF APPEALS TO ITAT UNDER SECTION 253X X X X Extracts X X X X X X X X Extracts X X X X ..... stances of a particular case and the statutory provisions. While taking decision in the matter, he shall, inter alia, take into consideration reports of the authorities below. Once the CIT communicates his decision to contest a particular order of CIT(A), it shall be the responsibility of the Range Head to ensure timely and proper filing of appeal in the ITAT and consequential follow up actions. The actual filing of appeal is to be ensured by the Assessing Officer (AO). Time Lines for Filing of Appeals in ITAT under section 253 of the Act 3. Time lines, indicating clearly the responsibilities of each level involved in the process, for filing appeals to ITAT have been laid down in Annexure-I to this instruction for strict adherence by all concerned. 4. Appeal Effect and Scrutiny Report i. On receipt of the order of the CIT(A), the AO shall give appeal effect promptly and properly. The Range Head shall monitor correctness and timely appeal effect in respect of orders of CIT(A). ii. Any pendency in regard to the appeal effect beyond one month shall be reported by the Range Head to the CIT in the DO reporting monthly activities of the Range, along with re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for acceptance. 6. Proper Judicial Record Management System 6.1 The CIT shall, inter alia, ensure that once appeal to ITAT is authorized against the order of CIT (A), a separate judicial folder for the assessee for a particular year is maintained in his office. Among other things, the folder should have a copy of relevant assessment order (along with copies of key documents used as evidence in support of additions made), a copy of the remand report, if any, and the scrutiny report submitted by the authorities below. 6.2 Such judicial folder should be easily retrievable for scrutiny of ITAT order or Judgment of the High Court, as the case may be, at the time of considering further appeal in the case, if any. A similar judicial folder in respect of assessee's appeal under section 253 filed in ITAT, containing a copy of appeal memo filed by the assessee and other relevant documents should also be maintained for the aforesaid purpose. 7. Transfer of Jurisdiction outside CIT's Charge During Pendency of Appeal 7.1 In case of transfer of jurisdiction over a case from one CIT to another CIT charge during pendency of appeal, the transferor AO shall, while transferrin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dered by lower authorities, a copy of the same must be referred to at relevant place in appeal memo and its copy annexed thereto. 9. Filing of Appeal and Subsequent Monitoring The CIT shall put in place proper mechanism with defined responsibility of different levels of officials in his charge to ensure that: i. The appeal is filed in the ITAT within prescribed time limit as in Annexure-I. ii. ITA/WTA Number allotted by the registry is obtained and recorded in judicial folder in CIT's office as mentioned in check list / proforma for scrutiny report on CIT(A) order at Annexure-II. iii. In case, the registry of the ITAT notifies any defect, immediate steps are taken by the AO concerned to remove the same with the assistance of the office of CIT (DR) or Senior DR as the case may be. iv. One set of appeal memo is kept with the AO for linking the same with the relevant assessment record. v. One set of appeal memo is kept in the office of CIT for placing the same in judicial folder. vi. The appeals are followed up and the Department is effectively represented at every hearing stage. vii. Proper coordination with the Departmental Represen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly. 14. Monitoring Mechanism i. The CIT shall ensure that appeals to ITAT are filed within prescribed time and pursued properly. ii. The CIT shall intimate to the CCIT in his monthly DO, the instances of delayed appeals to ITAT along with the reasons and corrective actions taken. The CCIT shall review due adherence to this instruction on a quarterly basis and take appropriate measures in case of deviations. iii. The cases of material deviations from this instruction, if any, shall be brought to the notice of ITJ section of the Board by the CCIT. 15. This Instruction shall apply to appeals to be filed in ITAT with effect from 22nd August, 2011. 16. Hindi version of instruction to follow. Note: Reference to the CCIT/CIT in this Instruction includes DGIT/DIT as the case may be. Annexure-I TIMELINES FOR FILING APPEAL TO ITAT Sl. No. Stages No. of days Total Time 1. Receipt of CIT(A)'s order in the office of CIT 0 day 0 day 2. Sending the order to AO for necessary action along with a copy to Range Head 5 days 5 days 3. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... / set aside order /Registration under section 12A / Approval etc.), specify the present appellate status of the other proceedings along with ITA No. /W.P. No. etc. vii. Whether any additional ground was admitted by the CIT(A)? Yes/No viii. If yes, whether the AO was intimated of the new grounds? Yes / No ix. Whether any additional evidence was admitted by CIT(A)? Yes/No x. If yes, whether opportunity to AO was granted under Rule 46A to give comments / counter the same? Yes/No/NA 3. Scrutiny report on appellate order A. If the tax effect in l(vii) above is below prescribed monetary limit and case does not fall in any exception of Instruction on monetary limits for filing appeals for the time being in force, detailed scrutiny may not be taken up and only general recommendation as to whether decision of CIT(A) is prima facie acceptable on merits or not, may be given. B. In cases other than at 'A' above, the AO in his scrutiny report shall cover following points, as may be applicable, on each issue where relief is allowed by CIT(A), in a separate Anne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hether the tax effect above is below the limit prescribed for filing of appeal in CBDT Instruction on monetary limits? Yes/No/NA iii. Whether the case falls in any of the exceptions laid down in the said Instruction? If so, specify clause No.? iv. Due date for submission of report to Range head (30 days from the date of receipt of CIT(A)'s order in the office of CIT) Submitted to the Addl./Jt. CIT, Range- . for kind consideration further action. The assessment records in .. volumes are also sent herewith. Date: Signature Place: Name Designation of the AO 5. Recommendation of Range head on scrutiny report by AO i. For each issue on which relief is allowed by the CIT(A) specify the issue involved with proper referencing:- (issues involved to be mentioned in brief, for illustration - disallowance of interest for interest free loan given; repair expenses treated as capital; accrual of interest income on Bonds; deduction under section 80-IB etc.) ii. Whether any additional evidence was admitted witho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he order is not acceptable on merits, or ii. Though tax effect is below the prescribed limit, the case falls under the exceptions (to be specified) of the Instruction of CBDT on monetary limits. iii. Authorisation under section 253(2) of the I.T. Act is issued separately. Appeal to be filed accordingly. Date: Name Signature Place: Commissioner of Income-tax 9. Filing of appeal i. After decision of the CIT, the DCIT/ACIT/ITO(J) shall send authorization letter and grounds of appeal along with the scrutiny report to the AO and ensure that appeal to ITAT is filed within time limit. ii. A copy of scrutiny report is to be sent to the DR along with his copy of appeal papers. (NOT TO BE ENCLOSED WITH OTHER SETS TO BE FILED IN ITAT) The ITA No. and date of filing should be obtained from AO and recorded. ITA No. : dated . : Note on perversity: An order or finding is perverse on facts, if it falls under any of the following categories: ( a ) The finding is without any evidence. Briefly indicate how it is so. ( b ) The finding is contrary to the evidence. Briefly sta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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