CBDT Notifies Scope of e-Appeals Scheme, 2023 u/s 246(6) of Income Tax Act

The Central Board of Direct Taxes (CBDT) notified on June 16, 2023, the scope of the e-Appeals Scheme, 2023, under Section 246(6) of the Income Tax Act, 1961.

The Central Board of Direct Taxes (CBDT) has specified that all appeals under section 246 and/or under specific clauses of sub-section (1) of section 246A of the Income Tax Act shall be processed under the e-Appeals Scheme, 2023. This scheme applies to a wide range of appeals, except for certain cases that are excluded.

• Assessment orders were passed concerning cases about the jurisdiction of the Commissioner of Income-tax (Central). 
• Assessments conducted as a result of a search under section 132 or a requisition under section 132A of the Act.
• Assessments conducted as a result of any action taken under section 133A of the Act.
• Assessments where there is an addition or variation in income based on seized or impounded material.

(iii) Appeals related to the jurisdiction of the Commissioner of Income-tax (International Taxation).

(iv) Appeals against penalty orders issued before January 12, 2021, in cases mentioned in category (i) with a disputed demand exceeding Rs. 10 lakhs.

(v) Appeals against penalty orders issued in cases mentioned in points 1 to 4 of categories (ii) and (iii) above.

(vi) Appeals against assessment orders issued on or after September 12, 2019, under the e-Assessment Scheme, 2019, the Faceless Assessment Scheme, 2019, or under section 144B of the Income Tax Act.

(vii) Appeals against penalty orders issued on or after January 12, 2021, under the Faceless Penalty Scheme, 2021.

The notification also defined “disputed demand” means:

(i) The first point refers to the discrepancy between the tax amount calculated based on the assessed total income and the tax amount mentioned in the filed income tax return, if applicable.

(ii) The second point pertains to the tax amount calculated based on the assessed total income when no income tax return has been filed.

(iii) The third point relates to the penalty imposed under Chapter XXI of the Income Tax Act.

(iv) The term "demand raised" refers to a notice issued under different sections of the Income Tax Act, including Section 156, section 143(1), section 200A(1), section 206CB(1), and other relevant sections. It encompasses the amount of tax owed along with any applicable interest, surcharge, and cess.

The e-Appeals Scheme, 2023, has been introduced by the Central Board of Direct Taxes (CBDT). This scheme applies to appeals related to individuals, incomes, and cases as specified under section 246 of the Income Tax Act, with certain exclusions mentioned in sub-section (6) of that section.

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