Income tax appeals can be filed before following Forums in the under mentioned order:

• FIRST APPEAL WITH CIT (APPEALS) AGAINST ASSESSING OFFICER ORDER
• SECOND APPEAL WITH ITAT AGAINST CIT(APPEALS) ORDER
• APPEAL TO HIGH COURT AGAINST ITAT ORDER
• APPEAL TO APEX SUPREME COURT AGAINST HIGH COURT ORDER

For any online or offline Income tax assessment order passed against the taxpayer in a case where the taxpayer denies the liability to be assessed under Income Tax Act, can file an first appeal against the order before the Commissioner of Income-tax (Appeals) being the first appellate authority.

1. Section 246A specifies the orders against which an appeal can be filed before the Commissioner of Income-tax (Appeals).

An appeal against Income tax assessment order can be filed before the first appellate authority for any of the following orders :

• Intimation issued under section 143(1)/(1B) with adjustments in Returned income
• Intimation issued under section 200A(1) / 206CB (1) with adjustments in the filed statement.
• Assessment order passed under section 143(3) except in case of an order passed in pursuance of directions of the Dispute Resolution Panel.
• An assessment order passed under section 144 or 144BA(12).
• Order of Assessment, Re-assessment or Re-computation passed after reopening the assessment under section 147 except an order passed in pursuance of directions of the Dispute Resolution Panel
• Order of Assessment, Re-assessment or Re-computation passed after reopening the assessment under section 144BA(12) or section 150
• An order of assessment or reassessment passed under section 153A except an order passed in pursuance of directions of the Dispute Resolution Panel or under section 158BC in case of search / seizure.
• Order passed under section 92CD(3) for Effect to advance pricing agreement..
• Rectification order passed under section 154 or under section 155.
• Order passed under section 163 treating the taxpayer as agent of non-resident.
• Order passed under section 170(2)/(3) assessing for Succession to business otherwise than on death.
• Order passed under section 171 for Assessment after partition of a Hindu undivided family.
• Order passed by Joint Commissioner under section 115VP(3) refusing approval to opt for tonnage-tax scheme to qualifying shipping companies.
• Order passed under section 201(1) for failure to deduct tax at source or to pay the same to the credit of the Central Government.
• Order passed under section 206C(6A) for failure to collect tax at source or to pay the same to the credit of the Central Government.
• Order determining refund passed under section 237.
• Order imposing penalty under Chapter XXI
• Order imposing penalty under section 221 for Penalty payable when tax in default
• Order imposing penalty under section 271 for Failure to furnish returns, comply with notices, concealment of income, etc
• Order imposing penalty under section 271A for Failure to keep, maintain or retain books of account, documents, etc
• Order imposing penalty under section 271AA for Penalty for failure to keep and maintain information and document, etc., in respect of certain transactions
• Order imposing penalty under section 271AAA for Penalty where search has been initiated.
• Order imposing penalty under section 271AAB for Penalty where search has been initiated.
• Order imposing penalty under section 271AAC for Penalty in respect of certain income.
• Order imposing penalty under section 271AAD for Penalty for false entry, etc., in books of account.
• Order imposing penalty under section 271B for Failure to get accounts audited.
• Order imposing penalty under section 271BA for Penalty for failure to furnish report under section 92E.
• Order imposing penalty under section 271BB for Failure to subscribe to the eligible issue of capital.
• Order imposing penalty under section 271C for Penalty for failure to deduct tax at source.
• Order imposing penalty under section 271CA for Penalty for failure to collect tax at source.
• Order imposing penalty under section 271D for Penalty for failure to comply with the provisions of section 269SS.
• Order imposing penalty under section 271DA for Penalty for failure to comply with the provisions of section 269ST
• Order imposing penalty under section 271DB for Penalty for failure to comply with the provisions of section 269SU.
• Order imposing penalty under section 271E for Penalty for failure to comply with the provisions of section 269T.
• Order imposing penalty under section 271F for Penalty for failure to furnish return of income
• Order imposing penalty under section 271FA for Penalty for failure to furnish statement of financial transaction or reportable account
• Order imposing penalty under section 271FAA for Penalty for furnishing inaccurate statement of financial transaction or reportable account
• Order imposing penalty under section 271FAB for Penalty for failure to furnish statement or information or document by an eligible investment fund.
• Order imposing penalty under section 271FB for Penalty for failure to furnish return of fringe benefits.
• Order imposing penalty under section 271G Penalty for failure to furnish information or document under section 92D.
• Order imposing penalty under section 271GA for Penalty for failure to furnish information or document under section 285A
• Order imposing penalty under section 271GB for Penalty for failure to furnish report or for furnishing inaccurate report under section 286
• Order imposing penalty under section 271H for Penalty for failure to furnish statements, etc
• Order imposing penalty under section 271-I for Penalty for failure to furnish information or furnishing inaccurate information under section 195
• Order imposing penalty under section 271J for Penalty for furnishing incorrect information in reports or certificates
• Order imposing penalty under section 271K for Penalty for failure to furnish statements, etc
• Order imposing penalty 272A for Penalty for failure to answer questions, sign statements, furnish information, returns or statements, allow inspections, etc
• Order imposing penalty 272AA for Penalty for failure to comply with the provisions of section 133B
• Order imposing penalty 272B for Penalty for failure to comply with the provisions of section 139A
• Order imposing penalty 272BB for Penalty for failure to comply with the provisions of section 203A
• Order imposing penalty 273 for False estimate of, or failure to pay, advance tax
• Order imposing penalty 158BFA(2) for Levy of interest and penalty in certain cases.

2. Appeal can also be made before the Commissioner of Income-tax (Appeals) under section 248 by a person denying liability to deduct tax under section 195 on any income, other than interest.

Form Of Appeal

Section 249(1) read with Rule 45 of the Income-tax Rules, 1962 specifies a new Form No. 35 for filing an appeal before Commissioner of Income Tax (Appeals). Particulars to be entered in Form no. 35 - (Income tax appeal filing procedure online)

1. Personal information with correct mail address and phone number for communication.
   
2. Assessment year
   
3. Details of the Order appealed against
   
4. Income-tax Authority passing the order appealed against
   
5. Detail of other pending appeals, if any
   
6. Section and sub-section of the Income-tax Act,1961 under which the appeal is preferred
   
7. Detail of addition / disallowances and demands made in assessment and to be disputed
   
8. Detail of penalty imposed in assessment and to be disputed
   
9. Details of Original return filed by the taxpayer and where no return has been filed by the appellant for the assessment year, whether an amount equal to the amount of advance tax as per section 249(4)(b) of the Income-tax Act, 1961 has been paid
   
10. If the appeal relates to any tax deductible under section 195 of the Income-tax Act, 1961 and borne by the deductor, details of tax deposited under section 195(1)
    
11. Statement of Facts
    • Facts of the case ( Drafting of appeal) should be in brief (not exceeding 1000 words)
    • Facts of the case should be limited to the subject matter of appeal
    • Only relevant facts of the case / order should be summarized and not the whole order
12. List of documentary evidence relied upon
    
13. List of additional evidences relied upon but not submitted before the assessing officer
    
14. Grounds of Appeal • Each ground of appeal should not exceed 100 words
    • Each ground of appeal should be made by referring to the relevant provision / section of the Income tax Act, 1961
    • Separate ground should be made for each subject matter of the appeal
    • Grounds should be clear, specific and unambiguous
    • Grounds based on legal standings may also be beneficial for the taxpayers
15. If there is delay in filing appeal, enter the grounds for condonation of delay in not exceeding 500 words
    
16. Details of Appeal Fees Paid (i.e., BSR code, date of payment of fee, serial number and amount of fee)
    
17. Address to which notices may be sent to the appellant

Further, e-filing of Form has been made mandatory for persons for whom e-filing of return of income is mandatory under sub- rule (3) of rule 12 w.e.f 1/3/2016.

Form no. 35 in original (including statement of facts and grounds of Appeal) – in duplicate if filed in paper form to be accompanied with following documents:

• One certified copy of order, appealed against.
  
• Copy of Notice of demand
  
• Copy of challans of fees paid for filing the appeal (i.e., BSR code, date of payment of fee, serial number and amount of fee)

Verification Of Form / Signature To The Appeal

Section 249(1) read with rule Rule 45 of Income-tax Rules, 1962 specifies the manner for verification / signing of Form of Appeal:
The form of appeal is to be signed and verified by the person authorised to sign the return of income under section 140 as applicable to the taxpayer as under:

• In case of appeal by an individual taxpayer, by the individual taxpayer himself or by a person duly authorized by him who is holding a valid power of attorney
• In case of a Hindu Undivided Family, by the Karta of the family or if Karta is absent from India or is not capable for signing, by any other adult member of such family
• In case of a company, by the Managing Director or if Managing Director is not available or where there is no Managing Director by any director of the company
• In case of foreign company, by a person who holds a valid power of attorney from such company
• In case of a firm, by the Managing Partner or if Managing Partner is not available or where there is no Managing Partner by any partner (not being a minor)
• In case of a LLP, by the Designated Partner or if Designated Partner is not available or where there is no Designated Partner by any partner.
• In case of a Local Authority, by the Principal Officer thereof
• In case of a Political Party, by the Chief Executive Officer of such party
• In case of any other Association, by the Principal Officer thereof or by any member of the Association.
• In case of any other Person, by that Person or by some person competent to act on his behalf.

Appeal Fees For Cit(Appeals)

Section 249(1) specifies the fees to be paid for filing an appeal before the Commissioner of Income Tax (Appeals).

Where assessed income (i.e. 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.1,000
Where subject-matter of appeal relates to any other matter, i.e., other than above	Rs. 250

How to pay appeal fee

Income tax appeal fees payment should be made assessment year wise through challan no. 280 under self assessment tax code and amount of fees to paid should be mentioned / entered against Others column.

Time Limit For Filing An Appeal

Section 249(2) specifies the time limit for filing an appeal before the Commissioner of Income-tax (Appeals)

For the appealable orders specified under section 246A - Appeal is to be filed within 30 days of the date of service of notice of demand / order sought to be appealed against

For the appealable orders specified under section 248 - appeal should be presented within 30 days of the date of payment of tax

The Commissioner (Appeals) on receipt of an Application for condoning the delay citing out reasons for the delay along with necessary evidences, may admit an appeal after the expiration of period of 30 days and can condone the delay in filing the appeal in genuine cases with a view to dispense substantive justice., if he is satisfied that there was sufficient cause for not presenting the appeal within the period of 30 days.

Tracking of an Income tax Appeal Status

Income tax appeal filed under the Income tax Act can be tracked in E-Proceeding' facility through your account in 'e-filing' website of Income Tax Department. [https://www.incometax.gov.in. - Login / Register - Pending Actions - E-proceeding]

Section 250 enumerates the procedure for handling of appeals filed before the Commissioner of Income-tax (Appeals).

Procedure in Appeal

• After the receipt of Form no. 35, the National Faceless Appeal Centre shall assign the appeal for disposal to a Commissioner (Appeals) of a specific appeal unit.
• On assignment of an appeal, the Commissioner of Income-tax (Appeals) will fix the date and place for hearing the appeal.
• The Commissioner of Income-tax (Appeals) may condone the delay in filing appeal if the appeal is filed beyond the time permitted under section 249 of the Act and record the reasons for such condonation or otherwise in the appeal order passed.
• The date and time for asking to file submissions, will be communicated to the taxpayer and to the Assessing Officer against whose order appeal is preferred. The communication will be made by issuing a notice to both the parties.
• In the appeal proceedings the taxpayer or the Assessing Officer can either present submissions personally or can appear through an authorized representative. Submissions will includes detailed written submissions and supporting evidences and Paper book .
• The Commissioner of Income-tax (Appeals) would hear the appeal and can obtain such further information, document or evidence as may be required from time and may adjourn the appeal from time-to-time.
• Before passing the order, the Commissioner of Income-tax (Appeal) may make such further inquiries as he thinks fit, or may direct the Assessing Officer to make further inquiry and report the result to him.
• During the course of appeal, the Commissioner of Income-tax (Appeals) may allow the taxpayer to go into additional grounds of appeal which are not specified in Form no. 35. However, additional grounds will be accepted after considering report of assessing officer on same and only if the Commissioner of Income-tax (Appeals) is satisfied that omission of these grounds from the form of appeal was not willful or unreasonable.
• During the course of appeal, the Commissioner of Income-tax (Appeals) may allow the taxpayer to go for additional evidences which are not submitted before the assessing officer. However, additional evidences will be accepted in terms of Rule 46A after considering report of assessing officer on same and taxpayers rebuttal reply.

Decision of the Commissioner of Income-tax (Appeals)

If the Commissioner (Appeals) intends to enhance an assessment or a penalty or reduce the amount of refund, the Commissioner (Appeals) as per section 251 shall prepare and send a show-cause notice containing the reasons for such enhancement or reduction, specifying the date and time to provide a reasonable opportunity to the taxpayer to present his case against such enhancement / reduction.

After hearing the case / arguments, the Commissioner of Income-tax (Appeals) will pass his order.

The order will be in writing. The order will be passed for disposal of the appeal and will state the decision on each ground of appeal along with reasons.

While disposing of an appeal, the Commissioner of Income-tax (Appeals) may consider and decide any matter arising out of the proceedings in which order appealed against was passed, even if such matter was not raised by the taxpayer before the Commissioner of Income-tax (Appeals).

Time limit for Disposal of appeal

Where it is possible, the Commissioner of Income-tax (Appeal) may dispose off the appeal within a period of one year from the end of the financial year in which appeal is filed.

Filing of additional evidences

Rule 46A of the Income-tax Rules, 1962

During the first appeal proceedings before the Commissioner of Income-tax (Appeals), the taxpayer is permitted to produce only those evidences (whether oral or documentary) which were produced before the Assessing Officer. In other words, the Commissioner of Income-tax (Appeals) will not permit the taxpayer to produce any additional evidences which were not produced by him before the Assessing Officer.

However, in following circumstances additional evidence will be accepted by the Commissioner of Income-tax (Appeals) in terms of Rule 46A:

1. Where the Assessing Officer has refused to admit evidence which ought to have been admitted; or
2. Where the tax payer was prevented by sufficient cause from producing the evidence which he was called upon to be produced by the Assessing Officer;
3. Where the tax payer was prevented by sufficient cause from producing any evidence before the Assessing Officer which is relevant to any ground of appeal; or
4. Where the Assessing Officer has made the order appealed against without giving sufficient opportunity to the tax payer to adduce evidence relevant to any ground of appeal.

The taxpayer has to make an application for acceptance of additional evidences. In other words, the additional evidences are to be accompanied with an application stating the reasons for their admission.
On receipt of such an application, the Commissioner of Income-tax (Appeals) may admit the same after recording reasons in writing for the admission of these evidences. Before taking into account the additional evidence filed by the taxpayer, the Commissioner of Income-tax (Appeals) provides a reasonable opportunity to the Assessing Officer for examining the additional evidence or the witness, as well as to produce evidences to rebut additional evidences produced by the taxpayer.

The Finance Act, 2020 has authorized the Central Government to notify an appeal scheme for disposal of appeal so as to impart greater efficiency, transparency and accountability by:

1. eliminating the interface between the CIT(A) and the appellant in the course of appellate proceedings to the extent feasible technologically;
2. optimizing the utilization of the resources through economies of scale and functional specialization;
3. introducing an appellate system with dynamic jurisdiction in which appeal shall be disposed of by one or more CIT (Appeals).

The Central Board of Direct Taxes (CBDT) vide NOTIFICATION S.O. 5429(E) [NO. 139/2021/F.NO. 370142/66/2021 has notified the Faceless Appeal Scheme, 2021 effective from 28.12.2021 in supersession of the Faceless Appeal Scheme, 2020
The Faceless Appeal Scheme, 2021, simplify Procedures For Tax Disputes and the procedures with regard to tax disputes. Such disputes will be first assigned by the National Faceless Appeal Centre to a commissioner (appeals) of a specific appeal unit through an automated allocation system.
The revised scheme vests all power of condonation of delay, additional evidence and additional grounds with the commissioner (appeals).
The revised scheme now mandates the commissioner (appeals) to also allow all requests for personal hearing via video conference when a tax demand is raised by the department. The date and time of hearing will need to be communicated to the taxpayer via the National Faceless Appeal Centre. The personal hearing can now take place via video conference as well.