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CS Professional · Advanced Direct Tax Laws and Practice · Appeals

Under section 356 of the Income-tax Act, 2025, an appeal against an assessment order is pending before the Commissioner (Appeals). Which statement is correct regarding transfer and rehearing?

The Board or an income-tax authority authorised by it may transfer the pending appeal to the Joint Commissioner (Appeals). That authority continues from the stage reached, and the appellant must be given an opportunity of being reheard under section 356(3) and (4).

  1. ANo transfer is possible once an appeal is filed before the Commissioner (Appeals)
  2. BThe Board or an authorised income-tax authority may transfer it to the Joint Commissioner (Appeals), who proceeds from the stage reached, and the appellant must be given an opportunity of being reheardCorrect
  3. CThe Board may transfer it, and the new authority must restart the appeal, with no rehearing right for the appellant
  4. DThe Assessing Officer may transfer the appeal to the Joint Commissioner (Appeals) without Board authorisation

Explanation

Section 356(3) allows the Board or an authorised authority to transfer such an appeal, and the receiving authority proceeds from the stage of transfer. Section 356(4) gives the appellant an opportunity of being reheard. Restarting the appeal is not required, and the Assessing Officer has no transfer power.

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