What do you mean by Income Tax Tribunal? Discuss in detail the procedure and powers of National Tax Tribunal under taxation laws in india.

 

Income Tax Tribunal and National Tax Tribunal in India

Introduction

The Income Tax Appellate Tribunal (ITAT) is a quasi-judicial body established under the Income Tax Act, 1961. It is the final fact-finding authority on disputes related to income tax assessments, appeals, or revisions. The National Tax Tribunal (NTT), a now-abolished body, was conceived to handle disputes involving substantial questions of law under direct and indirect taxation laws.

Income Tax Tribunal

Structure and Jurisdiction:

  1. Composition: ITAT consists of judicial and accountant members who handle appeals against orders of Commissioner of Income Tax (Appeals).
  2. Jurisdiction: It deals with cases involving assessment, penalties, and procedural matters.

Procedure:

  1. Filing of Appeals: Appeals to the ITAT must be filed within 60 days of receiving the order of the Commissioner (Appeals).
  2. Hearing: Both parties (taxpayer and income tax department) present their arguments, supported by evidence.
  3. Orders: The tribunal passes a written order based on majority opinion, which is final and binding unless appealed to the High Court on questions of law.

Powers of ITAT:

  1. Summoning Witnesses: The tribunal can summon individuals or request documents necessary for the case.
  2. Review of Orders: ITAT can rectify mistakes in its orders under specific conditions.
  3. Exercising Judicial Powers: It has the authority to interpret laws and deliver judgments based on precedents.

National Tax Tribunal (NTT)

Background:

  • The NTT was established in 2005 to consolidate appeals from High Courts related to taxation laws.
  • Declared unconstitutional in 2014 by the Supreme Court for violating the separation of powers.

Procedure:

  1. Appeals: Direct appeals to NTT were permitted on substantial legal questions under taxation laws.
  2. Hearing and Disposal: The tribunal followed a structured procedure similar to court hearings.
  3. Final Decision: NTT decisions were binding unless challenged in the Supreme Court.

Powers of NTT:

  1. Interpretation of Tax Laws: It had the authority to adjudicate on disputes involving complex tax interpretations.
  2. Judicial Review: NTT could evaluate whether tax laws were implemented constitutionally.
  3. Binding Precedents: Its rulings were binding on lower tribunals.

Conclusion

While the ITAT continues to function as a critical appellate body for tax-related disputes, the NTT’s abolition underscores the importance of preserving judicial independence. The ITAT serves taxpayers by ensuring fairness and adherence to tax laws, but its decisions can still be reviewed by the judiciary on points of law.



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