Section 158A of Income Tax Act for AY 2023-24

Section 158A of Income Tax Act 1961 as amended by Finance Act. Assessee claims identical question of law is pending before HC or SC.

Amended and updated notes on section 158A of Income Tax Act 1961 as amended by the Finance Act 2022 and Income-tax Rules, 1962. Detail discussion on provisions and rules related to procedure when assessee claims identical question of law is pending before High Court or Supreme Court.

Chapter XIVA (Sections 158A to 158AA) of the Income Tax Act 1961 deals with the provisions related to special provision for avoiding repetitive appeals. Section 158A of IT Act 1961 provides for procedure when assessee claims identical question of law is pending before High Court or Supreme Court.

Recently, we have discussed in detail section 158 (Intimation of assessment of firm) of IT Act 1961. Today, we learn the provisions of section 158A of Income-tax Act 1961. The amended provision of section 158A is effective for financial year 2022-23 relevant to the assessment year 2023-24.

In this article, you will learn detail of the provisions of section 158A of the Income Tax Act, 1961 Bare Act read with the Income-tax Rules, 1962 as provided by Ministry of Law and Justice, Government of India.

Section-158A: Procedure when assessee claims identical question of law is pending before High Court or Supreme Court

Section 158A(1) of Income Tax Act

Notwithstanding anything contained in this Act, where an assessee claims that any question of law arising in his case for an assessment year which is pending before the Assessing Officer or any appellate authority (such case being hereafter in this section referred to as the relevant case) is identical with a question of law arising in his case for another assessment year which is pending before the High Court on a reference under section 256 or before the Supreme Court on a reference under section 257 or in appeal under section 260A before the High Court or in appeal under section 261 before the Supreme Court (such case being hereafter in this section referred to as the other case), he may furnish to the Assessing Officer or the appellate authority, as the case may be, a declaration in the prescribed form and verified in the prescribed manner, that if the Assessing Officer or the appellate authority, as the case may be, agrees to apply in the relevant case the final decision on the question of law in the other case, he shall not raise such question of law in the relevant case in appeal before any appellate authority or in appeal before the High Court under section 260A or in appeal before the Supreme Court under section 261.

Section 158A(2) of Income Tax Act

Where a declaration under sub-section (1) is furnished to any appellate authority, the appellate authority shall call for a report from the Assessing Officer on the correctness of the claim made by the assessee and, where the Assessing Officer makes a request to the appellate authority to give him an opportunity of being heard in the matter, the appellate authority shall allow him such opportunity.

Section 158A(3) of Income Tax Act

The Assessing Officer or the appellate authority, as the case may be, may, by order in writing,—

  • (i) admit the claim of the assessee if he or it is satisfied that the question of law arising in the relevant case is identical with the question of law in the other case; or
  • (ii) reject the claim if he or it is not so satisfied.

Section 158A(4) of Income Tax Act

Where a claim is admtted under sub-section (3),—

  • (a) the Assessing Officer or, as the case may be, the appellate authority may make an order disposing of the relevant case without awaiting the final decision on the question of law in the other case; and
  • (b) the assessee shall not be entitled to raise, in relation to the relevant case, such question of law in appeal before any appellate authority or in appeal before the High Court under section 260A or the Supreme Court under section 261.

Section 158A(5) of Income Tax Act

When the decision on the question of law in the other case becomes final, it shall be applied to the relevant case and the Assessing Officer or the appellate authority, as the case may be, shall, if necessary, amend the order referred to in clause (a) of sub-section (4) conformably to such decision.

Section 158A(6) of Income Tax Act

An order under sub-section (3) shall be final and shall not be called in question in any proceeding by way of appeal, reference or revision under this Act.

Explanation: In this section,—

(a) “appellate authority” means the Deputy Commissioner (Appeals), the Commissioner (Appeals) or the Appellate Tribunal;

(b) “case“, in relation to an assessee, means any proceeding under this Act for the assessment of the total income of the assessee or for the imposition of any penalty or fine on him.


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