2003 (6) TMI 172 - AT - Income Tax

Summary

Issues:
- Appeal against order passed by CIT (Appeals)
- Dispute over appeal fee calculation based on total income as computed by Assessing Officer
- Interpretation of section 253(6) of the Act regarding the levy of appellate fee
- Requirement of paying balance fee based on original order passed by Assessing Officer

Analysis:

The appeal was filed against an order by the CIT (Appeals) for the assessment year 1997-98. The issue arose regarding the payment of appeal fee, with the office pointing out a shortage. The assessee had paid Rs. 1,500 at the time of filing the appeal, disputing the office note and requesting to decide the appeal fee issue as a preliminary matter. The crux of the matter was the interpretation of section 253(6) of the Act, which prescribes the fee based on the total income of the assessee as computed by the Assessing Officer. The assessee argued that the fee should be calculated on the revised income after the first appellate order, not the original assessment order, as the original order had merged with the appellate order.

Upon hearing both sides on the preliminary issue, the Tribunal referred to section 253(6) which outlines the fee structure based on the total income computed by the Assessing Officer. The Tribunal emphasized that the fee is to be levied according to the income determined by the Assessing Officer as per the provisions of the Act. While the appeal was against the order of the first appellate authority, the Tribunal noted that the language of the statute did not specify payment based on the revised order post the first appeal. Therefore, the Tribunal held that the fee should be charged based on the original order passed by the Assessing Officer, directing the assessee to pay the balance fee within a month for the appeal to proceed to a hearing.

In conclusion, the Tribunal disposed of the appeal by upholding the requirement for the assessee to pay the balance fee based on the original order passed by the Assessing Officer. The decision was grounded in the interpretation of the statutory provisions governing the levy of appellate fees, emphasizing the computation of fee based on the total income as determined by the Assessing Officer.