Section 246 and Section 246A of Income Tax Act, 1961: Appealable Orders
Sections 246 and 246A form part of Chapter XX of the Income Tax Act, 1961, dealing with appeals and revision. This article explains which income-tax orders may be appealed and distinguishes appeals before the Joint Commissioner (Appeals) from appeals before the Commissioner (Appeals).
Meaning of an appealable order
The expression covers specified assessment, reassessment, intimation, rectification, tax-deduction or tax-collection and penalty orders. The correct appellate forum depends on the provision under which the impugned order was passed and, for Section 246, the rank of the Assessing Officer.
Section 246 - Appealable orders before Joint Commissioner (Appeals)
Section 246 provides a first appellate remedy before the Joint Commissioner (Appeals) for an assessee aggrieved by specified orders of an Assessing Officer below the rank of Joint Commissioner, subject to the statutory allocation and exclusions.
In substance, the provision covers specified categories including:
- an intimation under Section 143(1), where the assessee objects to adjustments;
- an assessment under Section 143(3) or a best-judgment assessment under Section 144, where the assessee disputes assessed income, tax, loss or status;
- an assessment, reassessment or recomputation under Section 147;
- an intimation under Section 200A relating to processing of TDS statements;
- an order under Section 201 concerning consequences of failure to deduct or pay tax;
- specified TCS processing or default orders under Sections 206C and 206CB;
- a penalty order under Chapter XXI; and
- a rectification order under Section 154 or Section 155 amending an order of a category covered by Section 246.
The provision also enables the prescribed authority to transfer specified appeals between the Joint Commissioner (Appeals) and Commissioner (Appeals) in accordance with the Act. The exact statutory text and applicable notifications should be checked for the relevant assessment year and order.
Section 246A - Appealable orders before Commissioner (Appeals)
Section 246A specifies orders against which an assessee, deductor or collector, as applicable, may appeal to the Commissioner (Appeals). It remains the principal provision identifying a broad range of appealable orders before that authority.
Important categories include, subject to the precise statutory conditions:
- orders where the assessee denies liability to be assessed under the Act;
- specified intimations and assessments under Sections 143 and 144;
- specified reassessment or recomputation orders under Section 147 and related provisions;
- specified search or requisition assessments, including orders covered by the applicable search-assessment provisions;
- rectification orders under Sections 154 and 155 that adversely affect the taxpayer or refuse a claim;
- orders treating a person as agent of a non-resident under the applicable provision;
- specified orders concerning succession to business, partition of a Hindu undivided family, TDS and TCS;
- specified refund-related orders; and
- penalty orders expressly included in Section 246A.
Key provisions referred to on this page
| Provision | General subject |
|---|---|
| Section 143(1) | Processing of return and statutory intimation, including permitted adjustments. |
| Section 143(3) | Scrutiny assessment after the statutory assessment procedure. |
| Section 144 | Best-judgment assessment in circumstances specified by the Act. |
| Section 147 | Assessment or reassessment of income in accordance with the reassessment framework. |
| Section 154 | Rectification of a mistake apparent from the record. |
| Section 201 | Consequences relating to failure to deduct tax or pay tax deducted, subject to the provision. |
| Section 246 | Specified appealable orders before Joint Commissioner (Appeals). |
| Section 246A | Specified appealable orders before Commissioner (Appeals). |
Section 246 and Section 246A: practical distinction
Section 246, in the post-2023 appellate structure relevant to the period covered by this page, provides for specified appeals before the Joint Commissioner (Appeals). Section 246A identifies the statutory classes of orders appealable before the Commissioner (Appeals). The forum should therefore be determined from the exact order, the authority that passed it, the applicable assessment year and the allocation rules in force.
Filing an appeal
An appeal to the first appellate authority is generally filed in the prescribed form and manner. The appellant should identify the impugned order, state concise grounds of appeal, comply with the applicable limitation period and satisfy statutory requirements concerning admitted tax or other preconditions where applicable.
For related provisions on limitation and appellate procedure, see Sections 248, 249 and 250 of the Income Tax Act.
Official references
For the authoritative statutory position and later amendments, verify the relevant year of the Income Tax Act on the Income Tax Department - Income Tax Act portal and the applicable Finance Act. Tax provisions can change by amendment, commencement date, notification and assessment year.