e-Appeal and e-Penalty
e-Appeal and e-Penalty
As we know, e-Assessment provisions were introduced vide the Finance Act, 2018. Now, aiming to improve efficiency, increase transparency and bring in accountability, the Finance Bill, 2020 has proposed to insert provisions relating to e-Appeal and e-Penalty. This article helps to explain the newly inserted provisions to Section 250 (relevant to e-Appeal scheme) and newly inserted provisions to Section 274 (relevant to e-Penalty scheme).
e-Appeal Scheme Provisions
New Sub-section (6B) is proposed to be inserted to Section 250, which aims greater efficiency, more transparency and accountability while disposing of the appeals by the Commissioner (Appeals). The said new sub-section empowers the Central Government to notify such an e-Appeal scheme (which is to be adopted in disposal of appeals) which features the following:
- The scheme should eliminate the interface between the appellant and the Commissioner (Appeals) during the course of appellate proceedings to the extent the same is technologically feasible.
- The scheme should be improving the utilization of the resources by economies of scale and functional specialization.
- The scheme should be introducing an appellate system which should have the dynamic jurisdiction in which the appeal shall be disposed of by one or more Commissioner (Appeals).
The new Sub-section (6C) to Section 250 clarifies that it is mandatory to issue the direction for the e-Appeal scheme on or before 31st March 2022. Further, the new Sub-section (6D) to Section 250 proposes that each and every notification issued must be passed by each House of Parliament. The provisions of new Sub-section (6B); Sub-section (6C) and Sub-section (6D) to Section 250 shall be effective from 1st April 2020.
The provisions of Section 274 of the Income Tax Act lays down the procedure for imposing a penalty under Chapter XXI. New Sub-section (2A); sub-section (2B) and Sub-section (2C) has been inserted to Section 274 aiming greater efficiency; accountability and transparency in imposing a penalty.
The newly inserted Sub-section (2A) to Section 274 empowers the Central Government to notify such an e-Penalty scheme.
The new Sub-section (2B) to Section 274 clarifies that it is mandatory to issue the direction for the e-Penalty scheme on or before 31st March 2022. Further, the new Sub-section (2C) to Section 274 proposes that each and every notification issued is required to be laid down before each House of Parliament. The provisions of new Sub-section (2A); Sub-section (2B) and Sub-section (2C) to Section 274 shall be effective from 1st April 2020.