The Hindu Business Line : Centre notifies setting up of tax tribunal

THE Centre has taken the first step towards implementing the National Tax Tribunal (NTT) legislation, which was enacted in the third week of December.

It has through an executive order established the NTT, which would exercise the jurisdiction, powers and authority conferred on such tribunal under the NTT legislation.

With the establishment of the NTT from January 6, any order passed by the Income-Tax Appellate Tribunal (ITAT) from this date onwards would be open to appeal to the NTT and not to the High Courts, according to Mr Ved Jain, Chairman of the fiscal laws committee of the Institute of Chartered Accountants of India (ICAI).

Mr Jain told Business Line that the time period for filing appeals under the NTT is 120 days from the date on which the ITAT order is received. He said that any orders passed by the ITAT before January 6 would however be open to appeal to the High Courts.

As regards the matters that were pending before the High Courts as on January 6, Mr Jain said that these matters would stand transferred to the NTT on such date that may be notified by the Government. He said that this notification has not been issued so far and that the High Courts can continue to hear appeals in respect of ITAT orders passed before January 6.

As per the NTT legislation, the NTT would not be bound by the procedures laid down by the code of civil procedure 1908, but would be guided by the principles of natural justice.

The NTT law provides that a tribunal would consist of a chairperson and such number of members that the Central Government deems fit. Once appointed, the chairperson of the NTT would constitute the Benches.

This law also stipulates that the chairman of the tribunal should be a person who has been a judge of the Supreme Court or a Chief Justice of the High Court.

The Benches of the NTT could ordinarily sit at any place in the National Capital Territory of Delhi or any other place that would be specified by the Central Government.