How to file appeal before CIT(A)/ITAT
Written by gkkedia Dt. March 28th, 2023
The income tax return filed by any assessee is scrutinize by the income tax department to
verify the accuracy of that particular return and if any inaccuracy find or query arise from the
department side then the assessing officer (hereafter referred AO) issue various notices in the
manner prescribed under the income tax act, 1961. Thereafter, the assessee need to reply the
notices and if reply filed by the assessee is found unsatisfactory then the AO issue the
assessment order in the prescribed format and complete the assessment proceedings.
However, if assessee is not convincing from the assessment order passed by the AO then a
right to appeal is given by the act where assessee can appeal before the various forum.
However, the assessee has no inherent right of appeal unless the statute specifically provides
that a particular order is applicable.
There are four stages of appeal under the Income-tax Act, 1961 which are as follows:
In this article, we are going to find out how an assessee files its appeal before the
Commissioner of Income Tax (Appeal) i.e. CIT(A) as well as before the Income Tax
Appellate Tribunal (ITAT).
Time-Limit of filing appeal before CIT(A)
In accordance with Section 249(2) of the Income Tax Act, 1961, assessee may file its
appeal before CIT(A) within 30 days from the following date:
a) Where the appeal relates to any assessment or penalty, the date of service of
notice of demand relating to the assessment or penalty
b) In any other case, the date on which intimation of the order sought to be appealed
against is served
The belated application may also treated by the Commission of Income-tax (Appeal) only
in that case where sufficient cause being shown presented by the assessee. Application for
condonation of delay in filing the appeal, giving the reasons for the delay, along with
necessary evidences should be filed with Form No. 35 (i.e. form of appeal). The
Commissioner of Income-tax (Appeals) can condone the delay in filing the appeal if
genuine reason exists for delay.
Form of filing Appeal before CIT(A)
As per rule 45 of the Income Tax Rule, 1962, which is relating to filing of Form of appeal
to CIT(A), the CBDT by virtue of Income tax (3
rd Amendment) Rule, 2016. has issued a
new FORM No. 35 for filing an appeal before CIT(A).
Pre-deposit of Tax
Before filing the appeal, the tax payer should pay the tax which is determined as
per the return of income filed by him and in case no return is filed, then the
taxpayer should deposit tax equal to the amount of advance tax payable by him.
However, the CIT(A) may exempt the taxpayer from payment of tax before filing
of appeal and such benefit only granted if sufficient and good reasons is presented
by the taxpayer for non-payment of tax.
Documents to be submitted by the appellant for appeal
The following documents need to be submitted by the appellant to file an appeal
before CIT(A): –
• FORM No. 35, including statement of facts and the basis of grounds on
which the appellant filing its appeal.
• Certified copy of order against which the appellant filing its appeal.
• Notice of demand issued by the assessing officer.
• Copy of challan showing payment of fees which are required to be paid
before filing an appeal.
Fees for filing the appeal before CIT(A)
The fees structure for filing the appeal before the CIT(A) are as follows:
Where the total income as determined by the Assessing officer is:
• Less than or equal to Rs. 1,00,000 Rs. 250
• More than Rs. 1,00,000 but less than Rs. 2,00,000 Rs. 500
• More than Rs. 2,00,000 Rs. 1000
• Where subject matter of appeal relates to any other Rs. 250
matter, i.e., other than above
Procedure to file an appeal before CIT(A)
• Once the appellant filed FORM No. 35, the CIT(A) on receipt of FORM No. 35 will fix
the date and place for hearing the appeal.
• The date and place will be communicated to the taxpayer as well as to the Assessing
officer against whose order appeal is preferred. The communication will be done by
issuing a notice to both the parties.
• The appellant and the Assessing office is allow to present either personally or through
their authorized representative.
• The CIT(A) may hear the appeal and adjourn the appeal from time to time.
• Before passing the order, the CIT (A) may make such further inquiry as he deems fit, or
may also direct to the Assessing Officer to make further inquiry and report the result to
• During the course of appeal, the Commissioner of Income Tax may allow to appellant to
present the case with additional grounds of appeal. However, CIT(A) only considered the
additional grounds of appeal if it is satisfied that omission of these grounds from the
FORM N. 35 was not willful or unreasonable.
The income tax department has now launched the Faceless facility for income tax
assessments. Under the facility, all the cases will be completed in a faceless way in a
faceless environment except for appeals that are related to evasion of tax, serious
frauds, black money, international tax, and special research.
The Finance Act, 2020 has authorized the Central Government to notify an e-appeal
scheme for disposal of appeal so as to impart greater efficiency, transparency and
The Central Board of Direct Taxes (CBDT) vide Notification No. 76/2020, dated 25-
09-2020 has notified the Faceless Appeal Scheme, 2020 effective from 25-09-2020.
Appeal before Income Tax Appellate Tribunal(ITAT):-
ITAT i.e. Income Tax Appellate Tribunal is a quasi-judicial authority. It is the final
authority for judgments pertaining to facts. In other words ITAT is the final fact-finding
authority and no order passed by ITAT can be appealed against, unless it involves a
substantial question of law.
Who can file an appeal with ITAT
Firstly, we need to check is whether we are eligible to file to an appeal with ITAT?
So, here are the following person who can file an appeal before ITAT :-
1.) Income tax Department, or
Time-limit for filing an appeal with ITAT
The time-limit for filing an appeal with ITAT is given below:-
Form of filing appeal with ITAT :- Form 36
Form of filing Cross Objection with ITAT :- Form 36A
Rectification :- The Appellate Tribunal may, at any time within from the end of the
month in which order is passed, with a view to rectifying any mistake apparent
from records, amend any order passed by it. However, if the mistake is brought to
its notice by the assessee or the Assessing Officer, the Tribunal is bound to rectify
the same. In cases where the amendment has the effect of enhancing the assessment
or reducing a refund or otherwise increasing the liability of the assessee, the
Tribunal shall not pass any order of amendment unless it has given notice to the
assessee of its intention to do so and has allowed him a reasonable opportunity of
Fees for rectification :- Any application for rectification filed by the assessee shall
be accompanied by a fee of Rs. 50
Time limit :- In every appeal, the Appellate Tribunal, where it is possible, may hear
and decide such appeal within a period of four years from the end of the financial
year in which such appeal is filed under sub-section (1)/(2) of section 253.
Under section 254(2A), the Appellate Tribunal can grant stay of demand of tax
which can extend only up to 180 days from the date of granting such stay subject to
the condition that the assessee deposits not less than twenty per cent of the amount
of tax, interest, fee, penalty, or any other sum payable under the provisions of this
Act, or furnishes security of equal amount in respect thereof.
(i) Section 255(1) provides that the powers and functions of the Appellate Tribunal
may be exercised and discharged by Benches constituted by the President of the
Appellate Tribunal among the members thereof.
(ii) As per section 255(2), a Bench should normally consist of one judicial member
and one accountant member.
(iii) However, section 255(3) provides for constitution of a single member bench
and a Special Bench.
(iv) Section 255(3) provides that the President or any other member of the tribunal
authorized by the Central Government in this behalf may dispose of any case which
pertains to an assessee whose total income as computed by the Assessing Officer in
the said case does not exceeds Rs. 50 Lakh.
(v) The President may, for the disposal of any particular case constitute a special
Bench consisting of three or more members, one of whom must necessarily be a
judicial member and one an accountant member.
Fees [(Sec. 253(6)]
The Fees structure is mentioned below in a tabulated format :-
For now, I would wrap up, hoping the above information helps you to have a preliminary clarity
and knowledge in the topic of fling an appeal before Commissioner of Income Tax (Appeal) as
well as Income Tax of Appellate Tribunal (ITAT).
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