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

Section 158AA of Income Tax Act amended by Finance Act 2022. In an appeal by revenue an identical question of law is pending before Supreme Court.

Amended and updated notes on section 158AA 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 in an appeal by revenue an identical question of law is pending before 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 158AA of IT Act 1961 provides for Procedure when in an appeal by revenue an identical question of law is pending before Supreme Court.

Recently, we have discussed in detail section 158A (Procedure when assessee claims identical question of law is pending before High Court or Supreme Court) of IT Act 1961.

Today, we learn the provisions of section 158AA of Income-tax Act 1961 as amended by the Finance Act 2022. The amended provision of section 158AA 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 158AA 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-158AA: Procedure when in an appeal by revenue an identical question of law is pending before Supreme Court

Section 158AA (1):

Notwithstanding anything contained in this Act, where the Commissioner or Principal Commissioner is of the opinion that any question of law arising in the case of an assessee for any assessment year (such case being herein referred to as relevant case) is identical with a question of law arising in his case for another assessment year which is pending before the Supreme Court, in an appeal under section 261 or in a special leave petition under article 136 of the Constitution, against the order of the High Court in favour of the assessee (such case being herein referred to as the other case), he may, instead of directing the Assessing Officer to appeal to the Appellate Tribunal under sub-section (2) or sub-section (2A) of section 253, direct the Assessing Officer to make an application to the Appellate Tribunal in the prescribed form within sixty days from the date of receipt of the order of the Commissioner (Appeals) stating that an appeal on the question of law arising in the relevant case may be filed when the decision on the question of law becomes final in the other case.

Provided that no such direction shall be given on or after the 1st day of April, 2022.

[Proviso in sub-section(1) of section 158AA newly inserted w.e.f. 1-April-2022 by the Finance Act 2022]

Section 158AA (2):

The Commissioner or Principal Commissioner shall direct the Assessing Officer to make an application under sub-section (1) only if an acceptance is received from the assessee to the effect that the question of law in the other case is identical to that arising in the relevant case; and in case no such acceptance is received, the Commissioner or Principal Commissioner shall proceed in accordance with the provisions contained in sub-section (2) or sub-section (2A) of section 253.

Section 158AA (3):

Where the order of the Commissioner (Appeals) referred to in sub-section (1) is not in conformity with the final decision on the question of law in the other case, the Commissioner or Principal Commissioner may direct the Assessing Officer to appeal to the Appellate Tribunal against such order and save as otherwise provided in this section all other provisions of Part B of Chapter XX shall apply accordingly.

Section 158AA (4):

Every appeal under sub-section (3) shall be filed within sixty days from the date on which the order of the Supreme Court in the other case is communicated to the Commissioner or Principal Commissioner.

Open Demat Account

For Investing or Trading

(Best Investing and Trading Platform in India)

Learn More