IN THE INCOME TAX APPEALS PROCESS: FORMS, FEES & DEADLINES

• FILING AN APPEAL AN OVERVIEW

1. The first step in the appeal process is to file an appeal with the Commissioner of Income Tax (Appeals) under Section 264 of the Income Tax Act, 1961.

2. The appeal must be filed using Form 35 within 30 days from the date of receiving the assessment order.

3. The filing fee is as follows:
- ₹250 for assessed income up to ₹1 lakh
- ₹500 for assessed income between ₹1 lakh and ₹2 lakh
- ₹1,000 for assessed income above ₹2 lakh

4. The appeal process commences with the compilation of the assessment order, grounds of appeal, statement of facts, and proof of fee payment. Subsequently, Form 35 must be filed electronically via the Income Tax e-Filing portal. The submission is required to be authenticated using either a Digital Signature Certificate (DSC) or an Electronic Verification Code (EVC). Upon receipt, the Commissioner of Income Tax (Appeals) will schedule a hearing, consider the submissions, and issue a reasoned order.

B) The Income Tax Appellate Tribunal (ITAT)

1. Unsatisfied with CIT(A) Order?
You can appeal to the Income Tax Appellate Tribunal (ITAT) under Section 252 of the Income Tax Act, 1961.

2. Form & Deadline:
File Form 36 within 60 days of receiving the CIT(A) order.

3. Filing Fee:
- ₹500 (income ≤ ₹1 lakh)
- ₹1,500 (₹1–2 lakh)
- 1% of income (max ₹10,000) if income > ₹2 lakh

4. Documents Required:
- CIT(A) order
- Assessment order
- Grounds of appeal
- Proof of fee payment

5. Process:
Submit Form 36 with documents to ITAT. A hearing will be scheduled, and the ITAT will issue a final order after reviewing the case.

C) Appeal to the High Court

1. If the matter involves substantial questions of law and you are not satisfied with the decision of the ITAT, an appeal can be filed before the High Court under Section 260A of the Income Tax Act, 1961.

2. The appeal must be filed in the form of a Memorandum of Appeal within 120 days from the date of receipt of the ITAT order.

3. There is no fixed statutory fee for filing an appeal before the High Court, unlike appeals before the CIT(A) or ITAT. The appellant is required to draft and submit a memorandum clearly stating the legal grounds of appeal.

4. If the High Court admits the appeal, a detailed hearing is conducted, following which a judgment is delivered.

Note: The High Court may certify the case as fit for appeal to the Supreme Court if it involves substantial questions of law.

D) Appeal to the Supreme Court

a. Appeal to the Supreme Court (By Certificate – Section 261)

1. Legal Basis: An appeal to the Supreme Court under Section 261 of the Income Tax Act requires a certificate from the High Court stating that the case involves a substantial question of law of general importance that needs to be decided by the Supreme Court.

2. Tax Threshold: The Income Tax Department may appeal only if the tax effect exceeds ₹2 crore, subject to exceptions based on the nature and importance of the issue.

3. Time Limit: There is no specific statutory time limit; the appeal must be filed in accordance with the High Court’s certification process and as per the timelines prescribed under the Supreme Court Rules.

b. Special Leave Petition (SLP) to the Supreme Court (Discretionary, Article 136)

1. Legal Basis: Filed under Article 136 of the Constitution when there is a substantial question of law or a gross miscarriage of justice.

The Supreme Court’s discretion applies—no automatic right of appeal.

2. Time Limit:
- 90 days from the date of the High Court’s judgment.
- 60 days if challenging the High Court’s refusal to grant a certificate of fitness to appeal.

Note: The Supreme Court's decision is final and binding on all lower courts.

Conclusion

While navigating the requirements for filling appeals may seem intricate, with the right guidance, it becomes a manageable and essential process for filling an appeal. From ensuring computational of necessary document, time limit and paying the fees every detail plays a key role in ensuring smooth appeal process.

At Tax-O-Smart, we simplify process of receiving notice to filling appeal process with expert insights, clear instructions, and the latest updates on tax regulations. Whether you're an individual remitter or a business making appeals process simpler , we’re here to ensure your appeal process is seamless, efficient, and fully compliant. You can also check our informative blog on how to respond to the income tax notice do check it, it will help you in understanding notices which are connected to appeals

DISCLAIMER

The information contained in this document is prepared by R.J. Soni & Associates and TaxOSmart LLP (hereinafter referred to as RJSA) for information purpose only. It does not constitute any legal advice or tax advice. In no way, this document should be treated as a marketing material or efforts to solicit a client. While we have made every attempt to ensure that the information contained in this document is true, RJSA, its partners and/or any of its employees make no claims / guarantee about its accuracy, completeness, or up-to-date character, or warranty, express or implied, including the warranty of opinions expressed for a particular purpose, or assume any liability or responsibility for the accuracy, completeness, or usefulness of any information available from this document.