Amended and updated notes on section 251 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 Powers of the Commissioner (Appeals).
Chapter XX (Sections 246 to 269) of the Income Tax Act 1961 deals with the provisions related to appeals and revision . Section 251 of IT Act 1961 provides for Powers of the Commissioner (Appeals).
Recently, we have discussed in detail section 250 (Procedure in appeal) of IT Act 1961. Today, we learn the provisions of section 251 of Income-tax Act 1961. The amended provision of section 251 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 251 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-251: Powers of the Commissioner (Appeals)
Section 251(1) of Income Tax Act
In disposing of an appeal, the Commissioner (Appeals) shall have the following powers—
- (a) in an appeal against an order of assessment, he may confirm, reduce, enhance or annul the assessment;
- (aa) in an appeal against the order of assessment in respect of which the proceeding before the Settlement Commission abates under section 245HA,he may, after taking into consideration all the material and other information produced by the assessee before, or the results of the inquiry held or evidence recorded by, the Settlement Commission, in the course of the proceeding before it and such other material as may be brought on his record, confirm, reduce, enhance or annul the assessment;
- (b) in an appeal against an order imposing a penalty, he may confirm or cancel such order or vary it so as either to enhance or to reduce the penalty;
- (c) in any other case, he may pass such orders in the appeal as he thinks fit.
Section 251(2) of Income Tax Act
The Commissioner (Appeals) shall not enhance an assessment or a penalty or reduce the amount of refund unless the appellant has had a reasonable opportunity of showing cause against such enhancement or reduction.
Explanation.—In disposing of an appeal, the Commissioner (Appeals) may consider and decide any matter arising out of the proceedings in which the order appealed against was passed, notwithstanding that such matter was not raised before the Commissioner (Appeals) by the appellant.