Section 99 - Amendment of sub-heading and substitution of new sections for section 246 - Direct Tax Laws (Amendment) Act, 1987

99. Amendment of sub-heading and substitution of new sections for section 246. In Chapter XX of the Income-tax Act, for the sub-heading A .- Appeals to the Appellate Assistant Commissioner and Commissioner .(Appeals) and section 246, the following sub-heading and sections shall be substituted, namely :- A .- Appeals or applications to the Deputy Commissioner (Appeals) and Commissioner (Appeals) . 246. Appealable orders. (1) Subject to the provisions of sub-section (2), any assessee aggrieved by any of the following orders of an Assessing Officer (other than the Deputy Commissioner) may appeal to the Deputy Commissioner (Appeals) against such order- (a) an order against the assessee, where the assessee denies his liability to be assessed under this Act or any order of assessment under sub-section (3) of section 143 or section 144, where the assessee objects to the amount of income assessed, or to the amount of tax determined, or to the amount of loss computed, or to the status under which he is assessed; (b) an order of assessment, re-assessment or re-computation under section 147 or section 150; (c) an order under section 154 or section 155 having the effect of enhancing the assessment or reducing a refund or an order refusing to allow the claim made by the assessee under either of the said sections; (d) an order made under section 163 treating the assessee as the agent of a non-resident; (e) an order under sub-section (2) or sub-section (3) of section 170; (f) an order under section 171; (g) any order under clause (b) of sub-section (1) or under sub-section (2) or sub-section (3) or sub-section (5) of section 185 in respect of any assessment for the assessment year commencing on the 1st day of April, 1988 or any earlier assessment year; (h) an order cancelling the registration of a firm under sub- section (1) or under sub-section (2) of section 186 in respect of any assessment for the assessment year commencing on the 1st day of April, 1988 or any earlier assessment year; (i) an order under section 201; (j) an order under section 216 in respect of any assessment for the assessment year commencing on the 1st day of April, 1988 or any earlier assessment year; (k) an order under section 237; (l) an order imposing a penalty under - (i) section 221, or (ii) section 271, section 271A, section 271B, section 271C, section 271D, section 271E or section 272A; (iii) sub-section (1) of section 271, section 272, section 272B or section 273, as they stood immediately before the 1st day of April, 1989, in respect of any assessment for the assessment year commencing on the 1st day of April, 1988 or any earlier assessment years. (2) Notwithstanding anything contained in sub-section (1), any assessee aggrieved by any of the following orders (whether made before or after the appointed day) may appeal to the Commissioner (Appeals) against such order - (a) an order specified in sub-section (1) where such order is made by the Deputy Commissioner in exercise of the powers or functions conferred on or assigned to him under section 120 or section 124; (b) an order specified in clauses (a) to (e) (both inclusive) and clauses (i) to (1) (both inclusive) of sub-section (1) made against the assessee, being a company; (c) an order of assessment made after the 30th day of September, 1984 on the basis of the directions issued by the Deputy Commissioner under section 144A; (d) an order made by the Deputy Commissioner under section 154; (e) an order imposing a penalty under section 271B; (f) an order made by a Deputy Commissioner or a Deputy Director imposing a penalty under section 272A; (g) an order imposing a penalty under clause (c) of sub- section (1) of section 271, as it stood immediately before the 1st day of April, 1989, in respect of any assessment for the assessment year commencing on the 1st day of April, 1988 or any earlier assessment years, where such penalty has been imposed with the previous approval of the Deputy Commissioner under the proviso to clause (iii) of sub-section (1) of that section; (h) an order made by an Assessing Officer (other than Deputy Commissioner) under the provisions of this Act in the case of such person or classes of persons as the Board may, having regard to the nature of the cases, the complexities involved and other relevant considerations, direct. (3) Notwithstanding anything contained in sub-section (1), the Board or the Director General, or Chief Commissioner or Commissioner if so authorised by the Board, may, by order in writing, transfer any appeal which is pending before a Deputy Commissioner (Appeals) and any matter arising out of or connected with such appeal and which is so pending, to the Commissioner (Appeals) if the Board or, as the case may be, the Director General, or Chief Commissioner or Commissioner (at the request of the appellant or otherwise) is satisfied that it is necessary or expedient so to do having regard to the nature of the case, the complexities involved and other relevant considerations and the Commissioner (Appeals) may proceed with such appeal or matter from the stage at which it was before it was so transferred: Provided that the appellant may demand that before proceeding further with the appeal or matter, the previous proceeding or any part thereof be re-opened or that he be reheard. Explanation .- For the purposes of this section, - (a) appointed day means the 10th day of July, 1978, being the day appointed under section 39 of the Finance (No. 2) Act, 1977 (29 of 1977); (b) status means the category under which the assessee is assessed as individual , Hindu undivided family and so on. 246A. Application by the assessee in certain cases. (1) Where, before furnishing a return of income under section 139 or, as the case may be, sub-section (1) of section 142 for any assessment year, any question arises as to whether, - (a) any income is includible or not in computing the total income (hereafter in this section referred to as the disputed income), or (b) any deduction, allowance or other relief is admissible or not in computing the total income (hereafter in this section referred to as the disputed deduction), the assessee shall, after furnishing such return, make an application under sub-section (2) : Provided that the assessee,- (i) shall include in such return the disputed income and shall not claim the disputed deduction; and (ii) shall also pay thirty per cent. of the tax due on the disputed income and in respect of the amount of disputed deduction. (2) The application under sub-section (1) may be made within thirty days of furnishing the aforesaid return to the Deputy Commissioner (Appeals) or, as the case may be, to the Commissioner (Appeals). (3) For the purposes of disposing of an application under sub- section (1), the Deputy Commissioner (Appeals) or, as the case may be, the Commissioner (Appeals) may - (a) conduct such inquiry, or call for such books of accounts, other documents or information which he deems necessary; or (b) direct the Assessing Officer concerned to conduct such inquiry and furnish the report thereon, and thereafter decide the question raised in the application and pass such orders thereon as he thinks fit. (4) The provision relating to filing of appeals under this Act shall, so far as may be, apply to the making of an application under this section as if such application were an appeal. .