Section 260A of Income Tax Act for AY 2023-24

Section 260A of Income Tax Act 1961 as amended by the Finance Act 2022 and Income-tax Rules, 1962. Appeal to High Court.

Amended and updated notes on section 260A 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 Appeal to High Court.

Chapter XX (Sections 246 to 269) of the Income Tax Act 1961 deals with the provisions related to appeals and revision . Section 260A of IT Act 1961 provides for Appeal to High Court.

Recently, we have discussed in detail section 260 (Decision of High Court or Supreme Court on the case stated) of IT Act 1961. Today, we learn the provisions of section 260A of Income-tax Act 1961. The amended provision of section 260A 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 260A 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-260A: Appeal to High Court

Section 260A(1) of Income Tax Act

An appeal shall lie to the High Court from every order passed in appeal by the Appellate Tribunal before the date of establishment of the National Tax Tribunal, if the High Court is satisfied that the case involves a substantial question of law.

Section 260A(2) of Income Tax Act

The Principal Chief Commissioner or Chief Commissioner or the Principal Commissioner or Commissioner or an assessee aggrieved by any order passed by the Appellate Tribunal may file an appeal to the High Court and such appeal under this sub-section shall be—

  • (a) filed within one hundred and twenty days from the date on which the order appealed against is received by the assessee or the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner;
  • (b) [Omitted]
  • (c) in the form of a memorandum of appeal precisely stating therein the substantial question of law involved.

Section 260A(2A) of Income Tax Act

The High Court may admit an appeal after the expiry of the period of one hundred and twenty days referred to in clause (a) of sub-section (2), if it is satisfied that there was sufficient cause for not filing the same within that period.

Section 260A(3) of Income Tax Act

Where the High Court is satisfied that a substantial question of law is involved in any case, it shall formulate that question.

Section 260A(4) of Income Tax Act

The appeal shall be heard only on the question so formulated, and the respondents shall, at the hearing of the appeal, be allowed to argue that the case does not involve such question :

Provided that nothing in this sub-section shall be deemed to take away or abridge the power of the court to hear, for reasons to be recorded, the appeal on any other substantial question of law not formulated by it, if it is satisfied that the case involves such question.

Section 260A(5) of Income Tax Act

The High Court shall decide the question of law so formulated and deliver such judgment thereon containing the grounds on which such decision is founded and may award such cost as it deems fit.

Section 260A(6) of Income Tax Act

The High Court may determine any issue which—

  • (a) has not been determined by the Appellate Tribunal; or
  • (b) has been wrongly determined by the Appellate Tribunal, by reason of a decision on such question of law as is referred to in sub-section (1).

Section 260A(7) of Income Tax Act

Save as otherwise provided in this Act, the provisions of the Code of Civil Procedure, 1908 (5 of 1908), relating to appeals to the High Court shall, as far as may be, apply in the case of appeals under this section.


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