Section 261 of ITA, 1961 : Section 261: Appeal To Supreme Court

Explanation using Example

Imagine a company, XYZ Corp, disagrees with an income tax assessment made by the Income Tax Appellate Tribunal (ITAT) and the case is taken to the High Court. The High Court delivers a judgment on this matter. If the judgment was delivered before the establishment of the National Tax Tribunal and XYZ Corp believes the case has substantial national importance, they can seek a certificate from the High Court stating that the case is a fit one for appeal to the Supreme Court. If the High Court agrees and grants the certificate, XYZ Corp can then appeal to the Supreme Court under Section 261 of The Income-tax Act, 1961.