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Facts
The assessee's appeals against the orders of the Commissioner of Income Tax (Appeals) were dismissed in-limine for multiple assessment years. The FAA held that the Assessing Officer's order giving effect to an appellate order is not appealable under Section 246A of the Income Tax Act, 1961, and thus did not adjudicate the issues on merits.
Held
The Tribunal, relying on High Court judgments, ruled that an order passed by the AO giving effect to an appellate authority's directions is an assessment order under Sections 143 or 144 of the Act and is therefore appealable under Section 246(c). Consequently, the FAA's orders were set aside, and the matter was remitted back to the FAA to consider the issues raised on merits.
Key Issues
Whether an order passed by the Assessing Officer to give effect to an appellate authority's order is an appealable order before the Commissioner of Income Tax (Appeals).
Sections Cited
143, 144, 246A, 246(c), 250
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Income Tax Appellate Tribunal, ‘C’ BENCH, CHENNAI
Before: SHRI GEORGE GEORGE K & SHRI INTURI RAMA RAO
आदेश/ O R D E R PER BENCH: These appeals filed by the assessee are directed against different orders of Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi all dated 02.09.2025 passed under section 250 of the Income Tax Act, 1961 (hereinafter called ‘the Act’). The relevant Assessment Years are 2007-08, 2013-14, 2015-16, 2018-19 to 2021-22.
to 2981/Chny/2025 2. Brief facts of the case are as follows: The First Appellate Authority (FAA) had dismissed the appeals in-limine without adjudicating the issues on merits. The FAA held that the AO’s order giving effect to the appellate order is not an appealable order u/s.246A of the Act and dismissed the appeals of the assessee in-limine. The relevant finding of the FAA in assessment year 2007-08 reads as follows:- “6.2 An appeal is not maintainable before the Commissioner of Income Tax (Appeals) against the order giving appeal effect for an order already passed by CIT(A). The CIT(A) is the first appellate authority under the Income Tax Act, 1961. Appeals only can be filed before CIT(A) against specific orders of the Assessing Office or other lower Income Tax authorities as enumerated under Section 246A of the Act.
6.3 As appeal filed by the appellant is not an appealable order u/s.246A, an appeal before CIT(A) against order giving appeal effect of an order already passed by CIT(A) is not maintainable under the Income Tax Act. The appellant can file a grievance before J.A.O/Range Head and concerned Principal Commissioner of Income Tax for not giving appeal effect properly. Therefore, this appeal is not maintainable, hence the appeal is dismissed.
Aggrieved by the above orders of the FAA for the abovementioned assessment years, assessee has filed the present appeals before the Tribunal. The Ld.AR submitted that the AO while giving effect to an order of Appellate Authority, pass the order u/s.143 / 144 of the Act. An order passed u/s.143 or 144 of the Act is appealable u/s.246A of the Act. In support of his to 2981/Chny/2025 contention, the Ld.AR relied on the judgment of the Hon’ble Bombay High Court in the case of Caltex Oil Refining (India) Ltd., vs. CIT reported in [1993] 202 ITR 375 and Empire Industries Ltd., vs. CIT reported in [1992] 193 ITR 295.
The Ld.DR supported the orders of the FAA.
We have heard rival submissions and perused the material available on record. The FAA had dismissed the appeals in-limine without adjudicating the issues on merits by holding that the order of AO which is giving effect to the orders of appellate authority is not an appealable order. We are of the view that the orders passed by the AO, while giving effect to the order of appellate authority are also passed u/s.143 / 144 of the Act. No other provision of the Act empowers the AO to pass an order whether it is an order giving effect to the appellate authority order or not. The Hon’ble Bombay High Court in the case of Caltex Oil Refining (India) Ltd., (supra) and Empire Industries Ltd., (supra) had held that order of assessment passed by the AO pursuant to the directions of the Appellate Authority is an order passed within the meaning of section 143 or 144 of the Act and hence, appealable order u/s.246(c) of the Act. In light of the to 2981/Chny/2025 aforesaid judicial pronouncements and the provisions of the Act, we set aside the orders of the FAA and remit the issue to the file of FAA. The FAA is directed to consider the issues raised before him on merits. It is ordered accordingly.
In the result, the appeals filed by the assessee are allowed for statistical purposes.
Order pronounced in the open court on 18th December, 2025 at Chennai.