Income-tax (Twenty Second Amendment) Rules, 2022
Income-tax (Twenty-Second Amendment) Rules, 2022
The Central Board of Direct Taxes vides Notification No. 83/2022 dated 12th July 2022 has issued the Income-tax (Twenty-Second Amendment) Rules, 2022. The amendment has revised the Application form No. 8A filed under section 158AB of Income Tax Act, 1961 and Rule 16 of Income-tax Rules, 1962 to defer the filing of appeal before the Appellate Tribunal or the jurisdictional High Court. The present article briefs the Income-tax (Twenty-Second Amendment) Rules, 2022.
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Rule 16 of Income-tax Rules – Declaration under Section 158A
The CBDT has renumbered the existing Rule 16 as Rule 15A and inserted a new Rule 16 to provide that the application referred to in section 158AB, is required to be made before the Appellate Tribunal or the jurisdictional High Court, shall be made in Form No. 8A by the Assessing Officer.
The revised Form 8A shall be filed before the Appellate Tribunal or the jurisdictional High Court, as the case may be, by the Assessing Officer to defer the filing of appeal by the assessee.
Section 158AB of the Income Tax Act
Finance Act, 2022 inserted a new section 158AB in the Income-tax Act, as a tool of litigation management with a view to avoiding repetitive appeals and reference applications.
Section 158AB provides that where the collegium is of the opinion that any question of law arising in the case of an assessee for any assessment year is identical with a question of law already raised in his case or in the case of any other assessee for any assessment year, which is pending before the jurisdictional High Court or 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 Appellate Tribunal or the jurisdictional High Court in favor of such assessee (“other case”), it may decide and intimate the Commissioner or Principal Commissioner not to file an appeal at this stage, to the Appellate Tribunal or to the High Court under against the order of the Commissioner (Appeals) or the Appellate Tribunal.
Further, the Commissioner or Principal Commissioner shall, on receipt of a communication from the collegium, direct the Assessing Officer to make an application to the Appellate Tribunal or jurisdictional High Court in the prescribed form within 60 days from the date of receipt of the order of the Commissioner (Appeals) or within 120 days from the date of receipt of the order of the Appellate Tribunal, stating that an appeal on the question of law arising in the relevant case may be filed when the decision on the question of the law becomes final in the other case.
The Commissioner or Principal Commissioner shall direct the Assessing Officer to make such an application 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) of section 253 or in sub-section (2) of section 260A.
Furthermore, where the order of the Commissioner (Appeals) or the order of the Appellate Tribunal, in the relevant case, is not in conformity with the final decision on the question of law in the other case as and when such order is received, the Commissioner or Principal Commissioner may direct the Assessing Officer to appeal to the Appellate Tribunal or the jurisdictional High Court, against such order.
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Form No. 8A – Rule 16 of Income tax Rules
In order to prescribe the relevant form, the Board has amended the Rules vide Income-tax (22nd Amendment) Rules, 2022 and notified Form No. 8A in which the application shall be made by the Assessing Officer before the ITAT or jurisdictional High Court as per the provisions of section 158AB of the Act.
Form No. 8A requires the particulars related to the question of law for which appeal is deferred and the details of other cases or cases on the basis of which appeal is deferred.
The New form introduced vide the Income-tax (Twenty-Second Amendment) Rules, 2022 is attached here for reference:
Form No. 8A