Recently, a significant event took place in the world of Indian judiciary — the Income Tax Appellate Tribunal (ITAT) celebrated its 79th foundation day. As one of the oldest quasi-judicial institutions in the country, ITAT holds a considerable place in the taxation system of India. Established under section 5A of the Income Tax Act, 1922, it has played a vital role in resolving disputes concerning income tax.
Establishment of ITAT
The Income Tax Appellate Tribunal, commonly abbreviated as ITAT, was established in 1941. The initial set-up comprised three Benches located at key metro cities – Delhi, Kolkata (previously known as Calcutta), and Mumbai (formerly Bombay). These locations were strategically chosen as they were the seats of the High Court.
Over the years, ITAT has expanded its reach to include almost all cities that house a High Court. Today, there are 63 Benches spread across 27 different stations across the country. Because of its age and significance, ITAT is often referred to as the ‘Mother Tribunal’.
The Role of ITAT
ITAT plays a crucial role in the functioning of the Indian taxation system. Its primary function is to deal with appeals under the Direct Taxes Acts. The most notable of these is the Income-tax Act, 1961.
When a dispute arises regarding income tax, the involved parties can appeal to ITAT for resolution. This process ensures that taxpayers have a means to seek legal recourse if they believe there’s been an error in their assessment.
However, it’s important to note that although the orders passed by the ITAT are final, an appeal can be made to the High Court. This is only permissible if a substantial question of law comes up for determination during the course of dealing with the appeal.
| Fact | Details |
|---|---|
| Year of Establishment | 1941 |
| Initial Benches | 3 (Delhi, Kolkata, Mumbai) |
| Current Number of Benches | 63 |
| Bench Locations | 27 different stations |
| Main Function | To deal with appeals under the Direct Taxes Acts |
The Income Tax Appellate Tribunal stands as a pillar of the Indian judicial system. Its role in resolving tax disputes plays a significant part in maintaining order and fairness in tax administration. As the oldest tribunal in the country, it sets a strong precedent for judicial proceedings related to taxation.