Section 250 — Procedure in Appeal

Section 250 of the Income-tax Act, 1961 outlines the procedure to be followed during an appeal before the Commissioner of Income-tax (Appeals). This section ensures that the appellant is given a fair opportunity to present their case. The Commissioner (Appeals) is required to fix a day and place for the hearing of the appeal and give notice of the same to the appellant and the Assessing Officer against whose order the appeal is preferred. The appellant is allowed to be present in person or through an authorized representative. The section also mandates that the Commissioner (Appeals) shall hear the appellant and the Assessing Officer and may adjourn the hearing from time to time. The significance of this section lies in its provision for a structured and fair hearing process, ensuring that both parties have the opportunity to present their arguments and evidence before a decision is made.

Common Litigation Flashpoints

1. Dispute over the adequacy of notice given for the hearing
2. Challenges regarding the opportunity to present additional evidence
3. Disagreements on adjournment requests and their reasons
4. Contentions about the impartiality of the hearing process

Judgments on Section 250 — Procedure in Appeal

• Union of India & Anr. vs M/s. Ganpati Dealcom Pvt. Ltd. — SC,
  The 2016 Amendment Act cannot be applied retrospectively as it creates new offences and substantive changes, which cannot be applied to past transactions.
• Aditya Birla Nuvo Limited vs The Deputy Director of Income-tax — HC,
  The beneficial ownership of shares, despite being registered in the name of a permitted transferee, determines the taxability of capital gains in India.
• A2455 Madurai Electricity System PSCS vs The Income Tax Officer — ITAT,
  The Tribunal remanded the case to allow the assessee another opportunity to substantiate its claim for deduction under Section 80P(2)(a)(i).