Indian Overseas Bank Vs DCIT (ITAT Chennai)
Appeal Effect Orders Are Appealable — Chennai ITAT Revives IOB Appeals Dismissed by NFAC as Not Maintainable
The Chennai ITAT (C Bench) allowed a batch of appeals filed by Indian Overseas Bank for AYs 2007-08, 2013-14, 2015-16 & 2018-19 to 2021-22, holding that the NFAC erred in dismissing the appeals in limine on the ground that orders passed by the AO while giving effect to appellate directions are not appealable.
The NFAC had taken a view that an order giving appeal effect is not an order appealable u/s 246A, and that the Assessee’s remedy lay only by way of grievance before the JAO/PCIT. On this basis, all appeals were rejected without examining the issues on merits.
The Tribunal categorically held that there is no separate provision under the Act for passing an “appeal effect” order. Any such order is necessarily passed u/s 143 or 144, and therefore squarely appealable u/s 246A. Reliance was placed on binding precedents of the Bombay High Court in Caltex Oil Refining (India) Ltd. and Empire Industries Ltd..
Accordingly, the ITAT set aside the NFAC orders and remanded the matters back to the FAA with a direction to adjudicate the issues on merits, reaffirming that procedural labels cannot defeat statutory appellate rights. All appeals were allowed for statistical purposes
FULL TEXT OF THE ORDER OF ITAT CHENNAI
