Context
The Income Tax Appellate Tribunal (ITAT) recently ruled in favour of an Indian automobile manufacturer in a tax dispute, potentially providing tax relief of around ₹13,000 crore, including interest.
About ITAT
- Establishment: Set up in January 1941, ITAT is a quasi-judicial body that hears appeals in direct tax matters under the Income-tax Act, 1961.
- Administrative control: Ministry of Law and Justice.
- Benches: Initially, it had three benches in Delhi, Kolkata and Mumbai with six members. It currently has 63 benches across 27 cities.
- Composition:
- Regular benches generally comprise a Judicial Member and an Accountant Member.
- The President constitutes benches from among Tribunal members.
- A Special Bench of three or more members may be formed to decide complex or significant cases.
Functions and Appellate Jurisdiction
- Appeals: Hears appeals against orders passed by lower income-tax authorities, primarily the Commissioner of Income-tax (Appeals) [CIT(A)].
- Final Fact-Finding Body: Serves as the ultimate authority on facts, with exclusive power to examine evidence and make final determinations on questions of fact in tax disputes.
- Judicial Oversight: Its orders can be appealed before the jurisdictional High Court, but strictly on a substantial question of law. Further appeal lies with the Supreme Court under constitutional and statutory provisions.
FAQs
Q1. What is the Income Tax Appellate Tribunal (ITAT)?
Ans. ITAT is a quasi-judicial body established in January 1941 to hear appeals involving direct tax disputes.
Q2. Which ministry administers ITAT?
Ans. It functions under the Ministry of Law and Justice, Government of India.
Q3. Under which law does ITAT hear income-tax appeals?
Ans. It adjudicates appeals under the Income-tax Act, 1961, along with other applicable direct tax laws.
