Jurisdictional Income Tax Appellate Tribunal (ITAT)

The Income Tax Appellate Tribunal (ITAT) is the second appellate authority under the Income Tax Act, 1961, responsible for hearing appeals against the orders passed by the Commissioner of Income Tax (Appeals). When we refer to the Jurisdictional ITAT, it means the specific bench of the ITAT that has authority over a particular geographical area or tax jurisdiction — based on where the taxpayer’s case originates.

Key Points:

Position in Appeal Hierarchy:

First appeal: Filed before the CIT(A) (Commissioner of Income Tax – Appeals).

Second appeal: If the taxpayer or the Income Tax Department is not satisfied with the CIT(A)’s order, the case is taken to the ITAT.

Jurisdictional Bench: The jurisdictional ITAT refers to the bench that has territorial authority over the taxpayer’s case. For example, a taxpayer assessed in Mumbai will appeal to the Mumbai Bench of the ITAT.

Composition: Each bench usually consists of two members — One Judicial Member (having a legal background), and One Accountant Member (having an accounting or finance background). In complex cases, a Special Bench may be constituted with more members.

Role and Function: ITAT deals with disputes related to income tax assessments, penalties, TDS issues, exemptions, and deductions. It provides an independent and impartial forum for resolving tax disputes between taxpayers and the Income Tax Department.

Further Appeals: Decisions of the ITAT can be appealed before the High Court, but only on substantial questions of law.

Example: If a company based in Chennai disagrees with an assessment order upheld by the CIT(A) Chennai, it can file an appeal with the Jurisdictional ITAT – Chennai Bench