CBDT notifies e-Appeals Scheme 2023 to streamline TDS and TCS appeals

On 29-5-2023, the Ministry of Finance notified the e-Appeals Scheme, 2023 to reduce pendency of appeals related to Tax Deducted at Source default issues and Tax Collection at Source. It came into effect on 29-5-2023.

Key Points:

1. Any “Appeal” will mean an appeal filed by a person under Section 246-A(1) of the Income-tax Act, 1961.

2. Scope: it will apply to appeals involving persons/ classes of persons/incomes or classes of cases covered under Section 246 of the Income Tax Act, 1961 except for the cases under Section 246(6).

3. Joint Commissioner (Appeals) will be the appeal authority under this Scheme, and he can be assisted by the income-tax authority, ministerial staff, executive or consultant.

4. Procedure in appeal: appeals will be disposed of by the Joint Commissioner as per the following procedure:

   • On assignment of appeal, the Joint Commissioner can condone the delay in filing, give notice to the appellant asking to file his submissions and send a copy to the Assessing Officer (‘AO’), procure information, document or evidence from appellant, obtain report of AO on grounds of appeal/information and ask the AO to make further inquiry and/ or serve notice to the appellant/AO.

   • Appellant will furnish response to the Joint Commissioner within the date and time specified therein.

   • AO will furnish a report to the Joint Commissioner within the date and time specified therein.

   • The appellant can also file additional grounds of appeal to Joint Commissioner specifying the reason for omission of such grounds in the appeal filed by him.

   • Additional Grounds of Appeal- Joint Commissioner can admit the grounds in case the appealable orders were passed by the Central Processing Centre, in any other case the additional grounds will be sent to the AO to give assistance. The Joint Commissioner , after considering that the omission of additional grounds from the memorandum of appeal was not willful, can admit the grounds.

   • Additional Evidence furnished- Joint Commissioner can admit the evidence in case the appealable orders were passed by the Central Processing Centre. Joint Commissioner , for the purpose of making enquiries can direct the appellant to produce such document or evidence/ for examination of any other person, being a witness.

   • Joint Commissioner can enhance the assessment/ reduce the penalty/ reduce the amount of refund.

5. Penalty Proceedings- Joint Commissioner for non- compliance of any notice, direction or issued can send a notice to the appellant for initiation of any penalty proceedings calling upon them to show cause as to why penalty should not be imposed upon him.

6. JCIT has the authority to rectify any mistake in the order passed.

7. Any appeal against the order passed by the Joint Commissioner will lie before the Income Tax Appellate Tribunal having jurisdiction over the jurisdictional AO of the appellant assesses.

8. All communication between Joint Commissioner and appellant/ AO/ Principal Chief Commissioner/ Chief Commissioner/ Principal Commissioner/ Commissioner will be done through electronic mode.

9. No personal appearance is required in connection with any proceedings under this Scheme.