What is Income Tax Appellate Tribunal (ITAT)?

About Income Tax Appellate Tribunal (ITAT):

• It is a quasi-judicial institution set up in January 1941 and specializes in dealing with appeals under the Direct Taxes Acts. 
• Starting in 1941 with six Members constituting three Benches - one each at Delhi, Kolkata (Calcutta), and Mumbai (Bombay), the number of Benches has progressively increased, and presently ITAT has 63 Benches in 27 different cities, covering almost all the cities having a seat of the High Court.
  • Each bench has an accountant member and a judicial member.
  • The President of the ITAT constitutes a bench from among the members of the ITAT.
  • In some cases, a special bench with three or more members may be constituted to dispose of income tax appeals.
• ITAT serves as the final fact-finding body in tax disputes, offering both taxpayers and the income tax authorities a convenient platform to resolve disputes.
• It adjudicates appeals made under the Income Tax Act of 1961.
• It functions under the Ministry of Law and Justice. 
• Who can file an appeal in ITAT?
  • A tax appeal can be filed by a taxpayer who does not agree with the assessment order or any other order, passed by an income-tax authority.
  • An appeal before the ITAT is generally filed by the taxpayer to contest any order passed by the Commissioner of Income-tax (Appeals).
  • Similarly, an income-tax department can also file an appeal against any order passed by the Commissioner of Income-tax (Appeals) before the ITAT.
• The orders passed by the ITAT are final. An appeal lies to the High Court only if a substantial question of law arises for determination.
• ITAT functions under the regional High Court’s jurisdiction and must adhere to the rules of the same.
• ITAT is subordinate to both the region’s High Court and the Indian Supreme Court.