Income Tax Bill 2025 Clause 363 mirrors existing tribunal powers with structured timelines and financial safeguards
The Income Tax Bill 2025's Clause 363 largely mirrors Section 254 of the Income-tax Act 1961, governing the Appellate Tribunal's powers and procedures. Both provisions authorize the Tribunal to pass orders after hearing parties, rectify mistakes within six months, and grant stays of up to 180 days with 20% deposit requirements. Key features include mandatory disposal timelines of four years, automatic vacation of stays after 365 days regardless of fault, and discretionary cost awards. The provisions balance taxpayer rights with revenue protection, ensuring procedural fairness while preventing indefinite delays and frivolous appeals through structured timelines and financial safeguards.

Income Tax Bill 2025 Clause 362 modernizes appellate process maintaining two-month deadline and progressive fee structure
The Income Tax Bill 2025's Clause 362 modernizes the appellate process to the Income Tax Appellate Tribunal, replacing Section 253 of the Income-tax Act 1961. The provision streamlines appealable orders, maintains the two-month filing deadline, and preserves the progressive fee structure ranging from Rs. 500 to Rs. 10,000 based on assessed income. Key features include cross-objection rights within thirty days, discretionary delay condonation, and fee exemptions for revenue appeals. While substantive rights remain unchanged, the clause updates administrative nomenclature and removes obsolete references, enhancing clarity and procedural efficiency in tax dispute resolution.

Income Tax Bill 2025 Clause 361(2) creates dual appointment system for tribunal members based on hiring dates
The Income Tax Bill 2025's Clause 361(2) governs qualifications, appointments, and service conditions for tribunal members, creating a bifurcated system based on appointment dates. Post-2021 appointments follow the Tribunals Reforms Act 2021, while pre-2017 appointments continue under the original Income-tax Act 1961 provisions. This mirrors existing Section 252A of the Income-tax Act 1961, protecting vested rights of existing members while implementing reformed standards for new appointments. The provision aims to ensure tribunal independence, standardize appointment processes, and maintain continuity during legislative transitions, though it may create administrative complexity managing different service regimes simultaneously.

Income Tax Bill 2025 introduces Clause 361 reforming tribunal constitution with judicial and accountant members
The Income Tax Bill, 2025 introduces Clause 361 to reform the Income Tax Appellate Tribunal's constitution and governance, superseding Section 252 of the Income-tax Act, 1961. The clause authorizes the Central Government to constitute the tribunal with judicial and accountant members, requiring the President to be a sitting or retired High Court Judge with seven years' service or a Vice-President. While maintaining the tribunal's core structure, the bill defers member qualifications to the Tribunals Reforms Act, 2021, promoting uniformity across tribunals. Transitional provisions protect existing members' service conditions, preventing retrospective application of new rules and ensuring institutional continuity.

Income Tax Bill 2025 Clause 360 maintains appellate powers identical to Section 251 with modernized language
The Income Tax Bill 2025's Clause 360 and the Income-tax Act 1961's Section 251 both govern appellate powers of Commissioners and Joint Commissioners in tax matters. Both provisions empower appellate authorities to confirm, reduce, enhance, or annul assessments and penalty orders. Key powers include setting aside assessments for fresh consideration (limited to Commissioners), considering Settlement Commission materials when proceedings abate, and addressing any matters arising from proceedings. Both require reasonable opportunity of hearing before enhancement or reduction, upholding natural justice principles. The 2025 Bill modernizes language while maintaining substantive parity with existing law.

Income Tax Bill 2025 Clause 359 mirrors 1961 Act appeal procedures but omits faceless appeal provisions
The Income Tax Bill 2025's Clause 359 establishes appellate procedures largely mirroring Section 250 of the Income-tax Act 1961. Both provisions require appellate authorities to fix hearings, notify parties, and provide hearing rights to appellants and assessing officers. The appellate authority retains powers to adjourn proceedings, conduct further inquiries, and permit new grounds of appeal if omissions were not willful or unreasonable. Orders must be written with reasoned decisions, and appeals should be disposed within one year where possible. A notable difference is Clause 359's omission of explicit provisions for faceless appeals and scheme-based disposal mechanisms present in Section 250, potentially limiting digital process innovations unless addressed elsewhere in the new legislation.

Income Tax Bill 2025 Clause 358 retains appeal procedures from Section 249 with same fees and timelines
The Income Tax Bill 2025's Clause 358 largely mirrors Section 249 of the Income-tax Act 1961, governing appeals to appellate authorities. Both provisions require appeals in prescribed form with identical graded fee structures (Rs. 250-1000 based on income levels). The thirty-day limitation period remains unchanged, with provisions for condonation of delay and exclusion of time for certain applications. Pre-conditions requiring payment of tax on returned income or advance tax before appeal admission are retained, along with discretionary exemptions for recorded reasons. The Bill updates section references and streamlines language while maintaining the fundamental appellate framework, ensuring procedural continuity with minor modernization.

Income Tax Bill 2025 Clause 357 Modernizes Appeals Framework Expanding Appealable Orders Beyond Assessment
Clause 357 of the Income Tax Bill, 2025 replaces Section 246A of the Income-tax Act, 1961, modernizing the appellate framework for appeals before the Commissioner (Appeals). The provision expands appealable orders to include assessment orders, penalty orders, intimation adjustments, and orders treating parties as agents of non-residents. Key updates include new section references reflecting the restructured Act, consolidation of penalty provisions under Chapter XXI, and retention of exclusions for orders following Dispute Resolution Panel directions. The clause maintains rights for assessees, deductors, and collectors while providing flexibility for the Board to specify additional appealable cases, ensuring comprehensive taxpayer protection in the new tax regime.

Income Tax Bill 2025 Clause 356 replaces Section 246 introducing faceless appeals and flexible transfer mechanisms
The Income Tax Bill 2025's Clause 356 modernizes appellate remedies by replacing Section 246 of the Income Tax Act 1961. The new provision maintains core taxpayer protections while introducing technological innovations. Key features include consolidated categories of appealable orders before Joint Commissioner (Appeals), jurisdictional restrictions for higher authority orders, flexible transfer mechanisms between appellate forums, and emphasis on faceless proceedings. The clause empowers the Board to exclude certain cases and allows government-notified schemes for transparent, accountable appeal disposal. While preserving procedural safeguards like rehearing opportunities, some TDS/TCS-related orders appear omitted, potentially creating uncertainty. The evolution reflects policy shifts toward digitalization and administrative efficiency while maintaining natural justice principles.

Income Tax Bill 2025 Clause 389 allows taxpayers to appeal advance ruling decisions within sixty days
The Income Tax Bill 2025's Clause 389 establishes appellate remedies against Board for Advance Rulings decisions, allowing aggrieved applicants to appeal to High Court within sixty days, with thirty-day condonation period for sufficient cause. This provision largely mirrors existing Section 245W of the Income Tax Act 1961 but omits the Central Government's scheme-making powers for departmental appeals and parliamentary oversight requirements. The clause maintains essential taxpayer protections while simplifying the appellate framework by relying on established High Court procedures rather than creating separate schemes for advance ruling appeals.

Income Tax Bill 2025 replaces Authority for Advance Rulings with Board under Clause 388
The Income Tax Bill, 2025 introduces procedural changes for advance rulings through Clause 388, which replaces the Authority for Advance Rulings with the Board for Advance Rulings. The clause grants the Board power to regulate its own procedure in all matters, similar to Section 245V of the Income-tax Act, 1961. This transition from a quasi-judicial body to an administrative board aims to improve efficiency and reduce delays. However, it raises concerns about procedural consistency, transparency, and judicial oversight. The broad discretionary power allows flexibility but may create unpredictability for taxpayers and potential legal challenges regarding fairness and natural justice principles.

Income Tax Bill 2025 Clause 387 transitions advance ruling powers from Authority to Board with enhanced civil court powers
The Income Tax Bill 2025's Clause 387 modernizes advance ruling powers by transitioning from the Authority for Advance Rulings to the Board for Advance Rulings. The provision grants the Board civil court powers under the Code of Civil Procedure, deems it a civil court for specific purposes while excluding certain criminal procedure chapters, and treats proceedings as judicial proceedings. Key updates include references to new criminal codes - Bharatiya Nagarik Suraksha Sanhita and Bharatiya Nyaya Sanhita - replacing older provisions. The framework maintains procedural integrity by applying perjury and contempt provisions while balancing specialized tribunal functions with appropriate judicial powers for effective tax dispute resolution.

Board for Advance Rulings can void tax rulings obtained through fraud under Clause 386
The Income Tax Bill 2025's Clause 386 empowers the Board for Advance Rulings to declare advance rulings void ab initio when obtained through fraud or misrepresentation. This provision mirrors Section 245T of the Income-tax Act 1961, maintaining continuity in legislative policy while transitioning from the Authority for Advance Rulings to the Board structure. The clause allows voiding based on representations from tax commissioners or the Board's own initiative. When declared void, all tax provisions apply retrospectively as if the ruling never existed, excluding the period when the ruling was in effect. The provision lacks explicit definitions of fraud and misrepresentation, procedural safeguards, and appeal mechanisms, potentially raising fairness concerns.

Income Tax Bill 2025 Clause 385 creates jurisdictional bar preventing authorities from proceeding when advance ruling applications filed
The Income Tax Bill 2025's Clause 385 mirrors Section 245RR of the Income-tax Act 1961, both establishing jurisdictional bars preventing income-tax authorities and the Appellate Tribunal from proceeding on issues where resident taxpayers have filed advance ruling applications. The provision aims to prevent conflicting decisions and ensure integrity of the advance ruling mechanism. Key interpretative questions remain regarding the scope of "issue," duration of the bar, and effect on pending proceedings. The clause promotes taxpayer certainty and reduces litigation by providing exclusive jurisdiction to advance ruling authorities for matters under their consideration.

Income Tax Bill 2025 Clause 384 sets advance ruling procedures mirroring existing tax law requirements
The Income Tax Bill 2025's Clause 384 establishes procedures for processing advance ruling applications, closely mirroring Section 245R of the Income-tax Act 1961. The Board for Advance Rulings must forward applications to tax authorities, examine them, and either allow or reject within specified grounds. Applications must be rejected if questions are pending before other authorities, involve fair market value determinations, or relate to tax avoidance schemes. The Board must provide hearing opportunities before rejection, issue reasoned orders, and pronounce rulings within six months. The provision maintains procedural fairness through natural justice principles while preventing misuse of the advance ruling mechanism for avoiding legitimate tax obligations.

Income Tax Bill 2025 Clause 383 mirrors existing advance ruling procedures with simplified fee structure
The Income Tax Bill 2025's Clause 383 largely mirrors Section 245Q of the Income-tax Act 1961 regarding advance ruling applications. Both require applications in quadruplicate with a prescribed form stating the tax question, accompanied by a fee of ten thousand rupees or as prescribed. Both allow withdrawal within thirty days of application. Key differences include Clause 383's simplified fee language omitting "whichever is higher" and absence of transitional provisions for transferring pending applications from Authority for Advance Rulings to Board for Advance Rulings, which Section 245Q addresses. The evolution reflects legislative streamlining while maintaining core procedural requirements for tax certainty.

Clause 382 Income Tax Bill 2025 protects advance ruling proceedings from invalidation due to vacancies or defects in ruling body constitution
Clause 382 of the Income Tax Bill, 2025 and Section 245P of the Income-tax Act, 1961 both protect advance ruling proceedings from being invalidated due to vacancies or defects in the constitution of the ruling body. These provisions ensure continuity by preventing challenges based solely on administrative lapses like unfilled positions or minor composition irregularities in the Board for Advance Rulings or its predecessor Authority. The legislative intent is to maintain legal certainty, prevent frivolous litigation, and ensure uninterrupted tax adjudication. Clause 382 represents the evolution of Section 245P, reflecting the transition from Authority for Advance Rulings to Board for Advance Rulings while preserving the same procedural safeguards.

Income Tax Bill 2025 Clause 381 mirrors existing Section 245OB establishing Boards for Advance Rulings with administrative officers
The Income Tax Bill 2025's Clause 381 and the Income-tax Act 1961's Section 245OB both establish Boards for Advance Rulings with identical structures. Both provisions mandate the Central Government to constitute one or more Boards comprising two members, each being officers not below Chief Commissioner rank, nominated by the Board. This administrative model replaced the earlier Authority for Advance Rulings, which included judicial members. The provisions aim to provide taxpayers with clarity on tax interpretations before transactions, though concerns exist about independence and impartiality given the purely administrative composition without judicial oversight.

Income Tax Bill 2025 Clause 380 replaces Authority with Board for Advance Rulings, updates definitions
The Income Tax Bill 2025's Clause 380 introduces updated definitions for advance rulings, replacing the Authority for Advance Rulings with a Board for Advance Rulings. The clause defines advance rulings to cover tax liability determinations for non-residents, cross-border transactions, specified resident categories, pending computation issues, and impermissible avoidance arrangements. Key changes from the 1961 Act's Section 245N include administrative restructuring and modernized language, while maintaining similar scope and eligibility criteria. The regime continues to provide tax certainty through pre-transactional determinations, with resident access subject to government notifications and expanded coverage of anti-avoidance provisions.

Income Tax Bill 2025 Clause 379 creates Dispute Resolution Committees for taxpayers with variations under ten lakh rupees
The Income Tax Bill 2025's Clause 379 establishes Dispute Resolution Committees (DRCs) for taxpayers, largely mirroring Section 245MA of the Income Tax Act 1961. The Central Government constitutes DRCs for specified taxpayer categories, with eligibility limited to cases involving variations under ten lakh rupees and total income under fifty lakh rupees. DRCs can modify assessment variations, reduce penalties, and grant prosecution immunity. The mechanism excludes search/survey cases and international tax matters. Key differences from the existing provision include updated section references and greater reliance on subordinate legislation for procedural details, while maintaining the core objective of providing expeditious dispute resolution for small taxpayers.