Order of Appellate Tribunal - Section 254 - Income Tax - Ready Reckoner - Income Tax

Order of Appellate Tribunal - Section 254 (1) The Appellate Tribunal may, after giving both the parties to the appeal an opportunity of being heard, pass such orders thereon as it thinks fit. 2) The Appellate Tribunal may, at any time within 6 months from the end of the month in which the order was passed with a view to rectifying any mistake apparent from the record, amend any order passed by it under section 254(1) , and shall make such amendment if the mistake is brought to its notice by the assessee or the Assessing Officer An amendment which has the effect of enhancing an assessment or reducing a refund or otherwise increasing the liability of the assessee, shall not be made under section 254(2) unless the Appellate Tribunal has given notice to the assessee of its intention to do so and has allowed the assessee a reasonable opportunity of being heard (2A) Time Limit for passing order : - In every appeal, the Appellate Tribunal, where it is possible, may hear and decide such appeal within a period of 4 years from the end of the financial year in which such appeal is filed u/s 253(1) or (2) . - Time period for filling appeal :- The Appellate Tribunal may, after considering the merits of the application made by the assessee, pass an order of stay in any proceedings relating to an appeal filed under section 253(1), for a period not exceeding 180 days from the date of such order subject to the condition that the assessee deposits not less than 12% of the amount of tax, interest, fee, penalty, or any other sum payable under the provisions of this Act, or furnishes security of equal amount in respect thereof and the Appellate Tribunal shall dispose of the appeal within the said period of stay specified in that order: - Further Extension of time period :- No extension of stay shall be granted by the Appellate Tribunal, where such appeal is not so disposed of within the said period of stay as specified in the order of stay, unless the assessee makes an application and has complied with the condition referred to in the first proviso and the Appellate Tribunal is satisfied that the delay in disposing of the appeal is not attributable to the assessee, so however, that the aggregate of the period of stay originally allowed and the period of stay so extended shall not exceed 365 days and the Appellate Tribunal shall dispose of the appeal within the period or periods of stay so extended or allowed. (2B) Cost of any appeal: - The cost of any appeal to the Appellate Tribunal shall be at the discretion of that Tribunal. (3) Copy of Order:- The Appellate Tribunal shall send a copy of any orders passed under this section to the assessee and to the Commissioner (4) Orders passed by the Appellate Tribunal on appeal shall be final: - The orders passed by the Appellate Tribunal shall be final unless appeal is made u/s 260A On a question of fact, the order of ITAT is a final order and no appeal can be admitted by the High Court on question of fact. On question of law, order of ITAT is a final order if no appeal has been filed against it to the High Court. ITAT can rectify a mistake apparent from record in its order passed under section 254(1) by passing a rectification order under section 254(2) . The Appellate Tribunal does not have any power to review its own order On a question of fact determined by ITAT, a WRIT PETITION can be filed to the High Court challenging the fact-finding process adopted by ITAT. If High Court is satisfied that the fact-finding process was not correct, then it will quash the order passed by ITAT and direct the ITAT to do the fact finding in a proper manner and/or as per the directions of High Court. If the WRIT PETITION is dismissed by the High Court, then the assessee can file a SPECIAL LEAVE PETITION to the Supreme Court challenging the fact-finding process of ITAT. If Supreme Court is satisfied that the fact-finding process was not correct, then Supreme Court will quash the order of ITAT and direct the ITAT to do the fact finding in a proper manner and/or as per the directions of Supreme Court.