Income Tax Appeal Procedures
Professional Support for Challenging Tax Demands and Assessments
At Vetri Audit Services Private Limited, we specialize in representing taxpayers at various stages of the Income Tax Appeal process. Whether you’re an individual, business, or corporate entity, our expert team ensures proper representation and compliance with statutory timelines and procedures.
What is an Income Tax Appeal?
An Income Tax Appeal is a formal legal remedy available to taxpayers who are dissatisfied with an order, assessment, or penalty imposed by the Income Tax Department. It allows you to challenge the findings or conclusions drawn by the tax authorities, ensuring your right to a fair hearing and accurate tax determination.
Common Grounds for Filing an Appeal
Appeals may be filed for a variety of reasons, including but not limited to:
- Disallowance of valid deductions or exemptions
- Addition of income not actually earned or reported
- Rejection of books of accounts
- Penalty imposition under Sections 270A, 271, etc.
- Errors in tax computation or misclassification of income
- Excessive tax demands or denial of refunds
Hierarchy of Income Tax Appeal Authorities
| Level | Authority | Relevant Section |
|---|---|---|
| First Appeal | Commissioner of Income Tax (Appeals) - CIT(A) | Section 246A |
| Second Appeal | Income Tax Appellate Tribunal (ITAT) | Section 253 |
| Third Appeal | High Court (on substantial question of law) | Section 260A |
| Final Appeal | Supreme Court (on legal/constitutional matters) | Section 261, Article 136 of Constitution |
First Appeal - CIT (A)
Eligibility:
You can file an appeal before the Commissioner of Income Tax (Appeals) in cases involving:
- Assessment Orders (u/s 143(3), 144, 147)
- Penalty Orders
- TDS defaults
- Adjustments under Intimation u/s 143(1)
Procedure:
- File Form 35 on the Income Tax Portal
- Attach Statement of facts
- Attach Grounds of appeal
- Attach Copy of the disputed order
- Fees
- ₹500 (Income ≤ ₹1,00,000)
- ₹1,500 (Income > ₹1,00,000 and ≤ ₹2,00,000)
- 1% of assessed income (Max ₹10,000) for Income > ₹2,00,000
- Time Limit: Within 30 days from receipt of the order
- E-verification: Mandatory for submission
Second Appeal - Income Tax Appellate Tribunal (ITAT)
If dissatisfied with the CIT (A)'s decision, you can move to the ITAT.
- File Form 36 within 60 days of the CIT(A) order
- Hearing conducted by a two-member bench (Accountant + Judicial Member)
- Focus is on facts and interpretation of law
- Appeal can be initiated by either the taxpayer or the Income Tax Department
Appeal to the High Court
- Applicable only if there is a substantial question of law
- Must be filed under Section 260A within 120 days of the ITAT order
- Jurisdiction lies with the High Court of the state where the assessee is assessed
Appeal to the Supreme Court
- Filed under Article 136 of the Constitution as a Special Leave Petition (SLP)
- Admitted only in cases involving significant legal or constitutional questions
- Reviewed by the Supreme Court of India
Additional Remedies
In addition to the appeal process, taxpayers have other legal avenues for relief:
- Revision under Section 264 Request the Principal Commissioner of Income Tax (PCIT) to revise any order not already appealed.
- Rectification under Section 154 Apply for correction of errors apparent from the record without a full appeal.
Consequences of Not Appealing
Failure to act within the prescribed timelines may lead to:
- The assessment order becoming final and binding
- Levy and recovery of penalties and interest
- Possible enforcement and legal recovery proceedings
How We Assist
At Vetri Audit Services Private Limited, we offer end-to-end services for:
- Drafting and filing of appeal forms
- Legal research and documentation
- Representation before appellate authorities
- Strategic advice to strengthen your case
Contact us today to safeguard your tax rights and ensure professional representation in income tax appeal matters.
Contact us today for a consultation!
