INCOME TAX

INSTRUCTION NO. 1894/1992

 Dated: June16, 1992

Section(s) Referred: 253(2)

Statute: Income - Tax Act, 1961

Section 253(2) of I.T.Act, empowers the CsIT to authorise filing of appeals to the ITAT against the orders of the DCIT(Appeals)/CIT(appeals). The Board has from time to time issued instructions emphasising that the Commissioners should adopt a selective approach in filing appeals before the ITAT and that such appeals should be authorised after careful scrutiny, so that frivolous appeals are not filed.

2. It is noticed that the Board's Instructions are not being strictly followed and there are many instances of appeals being authorised without due care and scrutiny. It is, therefore, reiterated that the CsIT should authorise appeals only where there is proper justification and for this purpose, should examine in detail the issues arising out of the orders of DCIT(Appeals)/CIT(Appeals), especially on points of fact. Board's Instructions No.1493(F.No.279/189/82-ITJ dated 18-11-82) providing that orders of the CIT(Appeals) on questions of fact should be accepted by the Commissioners unless the findings are perverse, should be strictly adhered to and the monetary limits provided for by (F.NO.279/26/83-ITJ) dated 6-4-85 should also be followed.

3. The CCsIT/DGsIT should review monthly all appeals before the ITAT filed on questions of fact as well as at least 10% of the remaining appeals. This scrutiny may be completed within the succeeding month and if any appeals are found to be not justified, they may be withdrawn and the matter reported to the Board. A quarterly report of the review carried out by the CCsIT/DGsIT may be submitted in statistical form to the Board by the end of the following month.