135. Disposal of appeals by the Appellate Tribunal.-

(1)   The Appellate Tribunal may, before disposing of any appeal, call for such particulars as it may require respecting the matters arising in the appeal or cause further enquiry to be made by the Deputy Commissioner.

(2)   The Appellate Tribunal shall give both parties to the appeal an opportunity of being heard either in person or through an authorized representative.

(3)   If the Appellate Tribunal is not satisfied that the assessment or the order which is the subject of the appeal ought to be interfered with, it shall reject the appeal.

(4)   If the Appellate Tribunal is satisfied that an assessment which is the subject of appeal-

(a)    ought to be reduced or annulled, it shall reduce or annul the assessment accordingly; or

(b)    is insufficient, it shall enhance the assessment accordingly; or

(c)    ought to be set aside, it shall set aside the assessment and direct the Deputy Commissioner to make a fresh assessment.

(5)   If the Appellate Tribunal is satisfied that an order which is the subject of appeal, ought to be interfered with, it shall cancel or vary the order accordingly and shall issue such consequential directions as the case may require.

 

Explanation.- In the case of an order imposing a penalty, the power to vary the order shall include the power to enhance the penalty.

(6)   The Appellate Tribunal shall not enhance an assessment or a penalty or reduce the amount of refund, unless the assessee has been given reasonable opportunity of showing cause against such enhancement or reduction, as the case may be.

(7)   Where, as the result of an appeal, any change is made in the assessment of a firm or an association of persons or a fresh assessment of a firm or an association of persons is ordered to be made, the Appellate Tribunal may authorise the Deputy Commissioner to amend accordingly any assessment made on any partner of the firm or any member of the association, as the case may be.

(7A) Where no order under this section is made before the expiration of six months from the end of the month in which the appeal under sub-section (1) of Section 134 is presented, the relief sought through the said appeal shall be deemed to have been given and all the provisions of this Ordinance shall have effect accordingly:

Provided that, where the hearing of appeal is adjourned for any period on the request of the appellant, the said period shall be excluded while computing the aforesaid period of six months:

Provided further that the provisions of this sub-section shall come into force on such date as may be notified by the Income Tax Appellate Tribunal in the official Gazette.

(8)   The Appellate Tribunal shall communicate its order to the assessee and to the Commissioner.

(9)   Save as provided in section 136, an order passed by the Appellate Tribunal on appeal shall be final.