Orders of Appellate Tribunal.
81
254. (1) The Appellate Tribunal may, after giving both the parties to the appeal an opportunity of
being heard, pass such orders thereon as it thinks fit82.
(1A) 83[***]
(2) The Appellate Tribunal may, at any time within 84[six months from the end of the month in which
the order was 85passed], with a view to rectifying any mistake apparent from the record 85, amend any
order 85passed by it under sub-section (1), and 85shall make such amendment85 if the mistake is brought
to its notice by the assessee or the 86[Assessing] Officer :
Provided that an amendment which has the effect of enhancing an assessment or reducing a refund or
otherwise increasing the liability of the assessee, shall not be made under this sub-section unless the
Appellate Tribunal has given notice to the assessee of its intention to do so and has allowed the
assessee a reasonable opportunity of being heard :
87
[Provided further that any application filed by the assessee in this sub-section on or after the 1st day
of October, 1998, shall be accompanied by a fee of fifty rupees.]
88
[(2A) In every appeal, the Appellate Tribunal, where it is possible, may hear and decide such appeal
within a period of four years from the end of the financial year in which such appeal is filed under sub-
section (1) 89[or sub-section (2)] 90[***] of section 253 :
91
[Provided that the Appellate Tribunal may, after considering the merits of the application made by the
assessee, pass an order of stay in any proceedings relating to an appeal filed under sub-section (1) of
section 253, for a period not exceeding one hundred and eighty days from the date of such order
92
[subject to the condition that the assessee deposits not less than twenty per cent of the amount of tax,
interest, fee, penalty, or any other sum payable under the provisions of this Act, or furnishes security of
equal amount in respect thereof] and the Appellate Tribunal shall dispose of the appeal within the said
period of stay specified in that order:
93
[Provided further that no extension of stay shall be granted by the Appellate Tribunal, where such
appeal is not so disposed of within the said period of stay as specified in the order of stay, unless the
assessee makes an application and has complied with the condition referred to in the first proviso and
the Appellate Tribunal is satisfied that the delay in disposing of the appeal is not attributable to the
assessee, so however, that the aggregate of the period of stay originally allowed and the period of stay
so extended shall not exceed three hundred and sixty-five days and the Appellate Tribunal shall dispose
of the appeal within the period or periods of stay so extended or allowed:]
94
[Provided also that if such appeal is not so disposed of within the period allowed under the first
proviso or the period or periods extended or allowed under the second proviso, which shall not, in any
case, exceed three hundred and sixty-five days, the order of stay shall stand vacated after the expiry of
such period or periods, even if the delay in disposing of the appeal is not attributable to the assessee.]]
(2B) The cost of any appeal to the Appellate Tribunal shall be at the discretion of that Tribunal.]
(3) The Appellate Tribunal shall send a copy of any orders passed under this section to the assessee and
to the 95[96[***] 97[Principal Commissioner or] Commissioner].
(4) 98[Save as provided in section 25699[or section 260A]], orders passed by the Appellate Tribunal on
appeal shall be final.
81. For relevant case laws, see Taxmann's Master Guide to Income-tax Act.
82. For the meaning of the expression "pass such orders thereon as it thinks fit", see
Taxmann's Direct Taxes Manual, Vol. 3.
83. Omitted by the Taxation Laws (Amendment) Act, 1972, w.e.f. 1-1-1973. Original sub-
section was inserted by the Finance Act, 1964, w.e.f. 1-4-1964.
84. Substituted for "four years from the date of the order" by the Finance Act, 2016, w.e.f. 1-
6-2016.
85. For the meaning of the term/expressions "passed", "mistake apparent from the record",
"shall make ..... notice" and "amendment", see Taxmann's Direct Taxes Manual, Vol. 3.
86. Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-
1988.
87. Inserted by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998.
88. Sub-sections (2A) and (2B) inserted by the Finance Act, 1999, w.e.f. 1-6-1999.
89. Inserted by the Finance Act, 2000, w.e.f. 1-6-2000.
90. Words "or sub-section (2A)" omitted by the Finance Act, 2016, w.e.f. 1-6-2016. Earlier the
quoted words were inserted by the Finance Act, 2012, w.e.f. 1-7-2012.
91. Substituted by the Finance Act, 2007, w.e.f. 1-6-2007. Prior to their substitution, provisos,
as inserted by the Finance Act, 2001, w.e.f. 1-6-2001, read as under :
"Provided that where an order of stay is made in any proceedings relating to an appeal filed under
sub-section (1) of section 253, the Appellate Tribunal shall dispose of the appeal within a period of
one hundred and eighty days from the date of such order :
Provided further that if such appeal is not so disposed of within the period specified in the first
proviso, the stay order shall stand vacated after the expiry of the said period."
92. Inserted by the Finance Act, 2020, w.e.f. 1-4-2020.
93. Substituted by the Finance Act, 2020, w.e.f. 1-4-2020. Prior to its substitution, second
proviso read as under:
"Provided further that where such appeal is not so disposed of within the said period of stay as
specified in the order of stay, the Appellate Tribunal may, on an application made in this behalf by
the assessee and on being satisfied that the delay in disposing of the appeal is not attributable to the
assessee, extend the period of stay, or pass an order of stay for a further period or periods as it
thinks fit; so, however, that the aggregate of the period originally allowed and the period or periods
so extended or allowed shall not, in any case, exceed three hundred and sixty-five days and the
Appellate Tribunal shall dispose of the appeal within the period or periods of stay so extended or
allowed:"
94. Substituted by the Finance Act, 2008, w.e.f. 1-10-2008. Prior to its substitution, proviso
read as under :
"Provided also that if such appeal is not so disposed of within the period allowed under the first
proviso or the period or periods extended or allowed under the second proviso, the order of stay
shall stand vacated after the expiry of such period or periods."
95. Substituted for "Commissioner" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-
4-1988.
96. Words "Chief Commissioner or" were omitted by the Finance (No. 2) Act, 1991, w.e.f. 27-
9-1991.
97. Inserted by the Finance (No. 2) Act, 2014, w.r.e.f. 1-6-2013.
98. Words "Save as provided in the National Tax Tribunal Act, 2005" were to be substituted
for the words "Save as provided in section 256 or section 260A" by the National Tax
Tribunal Act, 2005. However, National Tax Tribunal Act, 2005 was declared as
unconstitutional by the Supreme Court in Madras Bar Association v. Union of India [2014]
49 [Link] 515.
99. Inserted by the Finance Act, 1999, w.e.f. 1-6-1999.