The Central Board of Direct Taxes (CBDT) recently issued an order on June 16, 2023 which defines and expands the scope of the e-Appeals Scheme, 2023 under Section 246(6) of the Income-tax Act, 1961. This order aims to streamline the appeals process and bring greater efficiency and convenience to taxpayers.
CBDT Order dated 16/06/2023: Scope of the ‘e-Appeals Scheme, 2023’ Specified
Understanding the e-Appeals Scheme, 2023
The e-Appeals Scheme, 2023 is a digital platform introduced by the CBDT to handle appeals filed under Section 246 and/or certain clauses of Section 246A of the Income-tax Act, 1961. This scheme leverages technology to enable taxpayers to file and track their appeals online, reducing paperwork and enhancing transparency.
Specifying the Scope of the e-Appeals Scheme
The recent CBDT order outlines the specific scenarios in which the e-Appeals Scheme, 2023 should be applied. While most appeals fall under this scheme, certain exceptions exist. Let’s explore the exceptions in detail:
1. Appeals Excluded based on Assessment Orders
Appeals against assessment orders passed before August 13, 2020, under sub-section (3) of Section 143 or Section 144 of the Act, with a disputed demand exceeding Rs 10 lakh, are not covered by the e-Appeals Scheme.
2. Appeals Excluded based on Assessment Categories
The following categories of assessments are excluded from the e-Appeals Scheme:
i) Assessment orders passed with respect to cases falling under the jurisdiction of the Commissioner of Income-tax (Central).
ii) Assessments completed in response to a search conducted under Section 132 or requisition made under Section 132A.
iii) Assessments completed as a result of any action taken under Section 133A.
iv) Assessments where additions or variations in income are made based on seized or impounded material.
3. Appeals Excluded based on Jurisdiction
Appeals falling under the jurisdiction of the Commissioner of Income-tax (International Taxation) are not covered by the e-Appeals Scheme.
4. Appeals Excluded based on Penalty Orders
i) Appeals against penalty orders passed before January 12, 2021, related to cases mentioned in category (1) with a disputed demand exceeding Rs. 10 lakh are not covered.
ii) Appeals against penalty orders in cases mentioned in points 1 to 4 of category (2) and category (3) are excluded.
5. Appeals Excluded based on e-Assessment and Faceless Schemes
i) Appeals against assessment orders passed on or after September 12, 2019, under the e-Assessment Scheme, 2019, the Faceless Assessment Scheme, 2019 or Section 144B of the Act are not covered.
ii) Appeals against penalty orders passed on or after January 12, 2021, under the Faceless Penalty Scheme, 2021 are excluded.
Understanding “Disputed Demand”
The CBDT order provides a clear definition of “disputed demand” for the purpose of this scheme. It includes the following elements:
i) The difference between the tax on the total income assessed and the tax on the returned income, if filed.
ii) Tax on the total income assessed in cases where no return has been filed.
iii) For penalty orders, the amount of penalty imposed under Chapter XXI of the Act.
iv) Demands raised through notices under Section 156 or intimation issued under sub-section (1) of Section 143 or sub-section (1) of Section 200A or sub-section (1) of Section 206CB, in any other case.
This includes applicable interest, surcharge and cess.
Streamlining the Appeals Process
The CBDT’s order to specify/expand the scope of the e-Appeals Scheme, 2023 marks a significant step toward digitalizing and simplifying the appeals process for taxpayers. By leveraging the benefits of technology, the scheme aims to reduce paperwork, enhance transparency and provide a more user-friendly experience for taxpayers.
Conclusion
The CBDT’s recent order expands the scope of the e-Appeals Scheme, 2023, bringing more appeals under its purview. Taxpayers can now leverage the benefits of the digital platform to file and track their appeals online, streamlining the entire process. It is important to take note of the specific scenarios where the e-Appeals Scheme applies and the exceptions mentioned in the CBDT’s order.
Related Posts: