Appeal, Reference, and Revision are legal mechanisms available to individuals or parties dissatisfied with a decision or order made by a lower authority or court. Here is an explanation of each process:
Appeal
- Appeal is a formal request made to a higher court or authority to review and reconsider a decision made by a lower court or authority.
- The purpose of an appeal is to challenge the legal or factual basis of the original decision and seek a different outcome.
- Appeals typically involve a review of the lower court’s judgment, evidence, and legal arguments presented by both parties.
- The appellate court may affirm, reverse, modify, or remand the lower court’s decision based on its findings.
Related Sections of Appeal
- Section 246A: This section specifies the orders against which an appeal can be filed before the Commissioner (Appeals). Taxpayers have the right to appeal against orders related to assessment, penalty, interest, refund, etc.
- Section 253: This section provides for the establishment of the Appellate Tribunal. Taxpayers can file an appeal before the Appellate Tribunal against the orders passed by the Commissioner (Appeals). The Appellate Tribunal is an independent body that adjudicates on tax disputes and provides a forum for taxpayers to present their case.
- Section 260A: This section deals with appeals to the High Court. Taxpayers or the income tax department can file an appeal before the High Court against the orders of the Appellate Tribunal. The High Court has the power to hear and decide on substantial questions of law arising from the orders of the Appellate Tribunal.
- Section 261: This section pertains to appeals to the Supreme Court. Taxpayers or the income tax department can file an appeal before the Supreme Court against the orders of the High Court. The Supreme Court has the highest jurisdiction in the country and can hear appeals on substantial questions of law
Reference
- Reference is a process where a lower court or authority seeks guidance or clarification on a legal question or issue from a higher court or authority.
- When a point of law is unclear or requires interpretation, the lower court or authority refers the matter to a higher court for resolution.
- The higher court provides its opinion or interpretation, which guides the lower court in making a decision in the case.
Related Sections of Reference
- Section 245A: This section provides for the mechanism of making a reference to the Authority for Advance Rulings (AAR). Taxpayers can approach the AAR to seek a ruling on the tax implications of a particular transaction before entering into it. This helps taxpayers in obtaining certainty and clarity on tax matters.
- Section 245BA: This section outlines the procedure for obtaining an advance ruling from the AAR. It specifies the documents to be submitted, the fee payable, and the time frame within which the ruling will be provided.
- Section 245D: This section specifies the powers and functions of the AAR. The AAR has the authority to pronounce rulings on referred cases, providing guidance to taxpayers on the interpretation and application of tax laws.
- Section 245H: This section allows the AAR to modify its earlier ruling under certain circumstances. If there is a change in law or facts, the AAR has the power to revise its ruling.
Revision
- Revision is a discretionary power given to a higher court to review a decision made by a lower court or authority.
- It allows the higher court to examine the legality, regularity, or propriety of the lower court’s decision.
- Revision is typically invoked in exceptional cases where there may be a miscarriage of justice, violation of legal principles, or an error apparent on the face of the record.
- The higher court may confirm, modify, or set aside the decision of the lower court and pass appropriate orders.
Related Sections of Revision
- Section 245A: This section provides for the mechanism of making a reference to the Authority for Advance Rulings (AAR). Taxpayers can approach the AAR to seek a ruling on the tax implications of a particular transaction before entering into it. This helps taxpayers in obtaining certainty and clarity on tax matters.
- Section 245BA: This section outlines the procedure for obtaining an advance ruling from the AAR. It specifies the documents to be submitted, the fee payable, and the time frame within which the ruling will be provided.
- Section 245D: This section specifies the powers and functions of the AAR. The AAR has the authority to pronounce rulings on referred cases, providing guidance to taxpayers on the interpretation and application of tax laws.
- Section 245H: This section allows the AAR to modify its earlier ruling under certain circumstances. If there is a change in law or facts, the AAR has the power to revise its ruling.
