APPEAL TO COMMISSIONER OF INCOME-TAX (APPEALS)

Introduction
At times it may happen that the taxpayer is aggrieved by an order of the Assessing
Officer. In such a case he can file an appeal against the order of the Assessing Officer
before the Commissioner of Income-tax (Appeals).
In this part you can gain knowledge about various provisions relating to appeals to
Commissioner of Income-tax (Appeals).
Appealable order
The Commissioner of Income-tax (Appeals) is the first appellate authority. Section 246A
specifies the orders against which an appeal can be filed before the Commissioner of
Income-tax (Appeals). The list of major orders against which an appeal can be preferred
before the Commissioner of Income-tax (Appeals) is given below:
 Order passed against the taxpayer in a case where the taxpayer denies the liability
to be assessed under Income Tax Act.
 Intimation issued under section 143(1)/ (1B)where adjustments have been made in
income offered to tax in the return of income.
 Intimation issued under section 200A(1) where adjustments are made 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.
 Order of Assessment, Re-assessment or Re-computation passed after reopening
the assessment under section 147except an order passed in pursuance of directions
of the Dispute Resolution Panel
 An order referred to in section 150.
 An order of assessment or reassessment passed under section 153A or under
section 158BC in case of search/seizure.
 Assessment or reassessment order passed under section 92CD(3).
 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 the successor of the business in
respect of income earned by the predecessor.
 Order passed under section 171 recording the finding about 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)/206C(6A) deeming person responsible for
deduction of tax at source as assessee-in-default due to failure to deduct tax at

[As amended by Finance Act, 2019]

 source or to collect tax at source or to pay the same to the credit of the
Government.
 Order determining refund passed under section 237.
 Order imposing penalty under section(s)
221/271/271A/271AAA/271F/271FB/272A/272AA/272B/272BB/275(1A)/158B
FA(2)/271B/271BB/271C/271CA/271D/271E/271AAB.
 Order imposing a penalty under Chapter XXI.
Time-limit for presenting an appeal
As per Section 249(2), appeal should be presented within 30 days of 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) Where appeal is under section 248, i.e., appeal by a person denying liability to
deduct tax under section 195, the date of payment of tax.
(c) In any other case, the date on which intimation of the order sought to be appealed
against is served.
The Commissioner of Income-tax (Appeals) may admit belated application on sufficient
cause being shown. 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 appeal
The CBDT had substituted the Rule 45 of Income-tax Rules, 1962 relating to filing of
Form of appeal to CIT(A) vide Income-tax (3rd Amendment) Rules, 2016.
By virtue of such amendment, the CBDT had issued a new Form No. 35 for filing an
appeal before CIT(A). Further, e-filing of Form has been made mandatory for persons for
whom e-filing of return of income is mandatory.
Signature to the appeal
The form of appeal, the grounds of appeal and the form of verification are to be signed
and verified by the person authorised to sign the return of income under section 140 as
applicable to the taxpayer. In other words, form of appeal is to be signed and verified by
following:
(1) In case of appeal by an individual taxpayer, by the individual taxpayer himself or
by a person duly authorised by him who is holding a valid power of attorney
(2) 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.

[As amended by Finance Act, 2019]

 (3) 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.
(4) In case of foreign company, by a person who holds a valid power of attorney from
such company
(5) 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)
(6) 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.
(7) In case of a Local Authority, by the Principal Officer thereof
(8) In case of a Political Party, by the Chief Executive Officer of such party
(9) In case of any other Association, by the Principal Officer thereof or by any
member of the Association.
(10) In case of any other Person, by that Person or by some person competent
to act on his behalf.
Pre-deposit of tax
Before filing the appeal, the taxpayer should pay the tax determined as per the return of
income filed by him.
If no return of income is filed, the taxpayer should pay tax equal to the amount of
advance tax payable by him. However, on application made by the taxpayer, the
Commissioner of Income-tax (Appeal) may exempt the taxpayer from payment of tax
before filing the appeal. Such benefit is granted if good and sufficient reason is proved by
the taxpayer for non-payment of tax before filing the appeal.
Documents to be submitted for appeal
 Form No. 35 (including statement of facts and grounds of Appeal) – in duplicate.
However, e-filing has been made mandatory for persons for whom e-filing of
return of income is mandatory w.e.f 1/3/2016.
 One certified copy of order, appealed against.
 Notice of demand in original.
 Copy of challans of fees the details of the challan (i.e., BSR code, date of
payment of fee, serial number and amount of fee) are required to be furnished in
case of e-filing of form of appeal.
Fees
The fees for filing the appeal before the Commissioner of Income-tax (Appeals) are as
follows :
 Where assessed income (i.e. total income as determined by the Assessing Officer)
is :

[As amended by Finance Act, 2019]

  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.
Procedure of the appeal
 After the receipt of Form no. 35, the Commissioner of Income-tax (Appeals) will
fix the date and place for hearing the appeal.
 The date and place 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 appear
personally or can appear through an authorized representative.
 The Commissioner of Income-tax (Appeals) would hear the appeal 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 (*). However,
additional grounds will be accepted 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.
(*) Additional grounds means grounds which are not specified in Form no. 35
Filing of additional evidences
During the 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 by him 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)
(a) Where the Assessing Officer has refused to admit evidence which ought to have
been admitted; or
(b) Where the appellant was prevented by sufficient cause from producing the
evidence which he was called upon to be produced by the Assessing Officer; or

[As amended by Finance Act, 2019]

 (c) Where the appellant was prevented by sufficient cause from producing any
evidence before the Assessing Officer which is relevant to any ground of appeal;
or
(d) Where the Assessing Officer has made the order appealed against without giving
sufficient opportunity to the appellant to adduce evidence relevant to any ground
of appeal.
 Normally, 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) has to provide 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.
Decision of the Commissioner of Income-tax (Appeals)
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.
In case of an appeal against the assessment order the Commissioner of Income-tax
(Appeals) may confirm, reduce, enhance or annul the assessment (including assessment
in respect of which proceedings before the Settlement Commission abates).
In case of an appeal against the penalty order the Commissioner of Income-tax (Appeals)
may confirm, reduce or enhance the penalty.
Before enhancing any assessment or penalty, the Commissioner of Income-tax (Appeals)
has to provide a reasonable opportunity to the taxpayer to present his case against such
enhancement.
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).
Disposal of appeal
Where it is possible, the Commissioner of Income-tax (Appeal) shall dispose off the
appeal within a period of one year from the end of the financial year in which appeal is
filed. The order should be issued within 15 days of last hearing. (Instruction No. 20/2003
[file no. 279/Misc 53/ 2003- ITJ], Dated 23.12.2003).

[As amended by Finance Act, 2019]

 MCQ ON APPEAL TO COMMISSIONER OF INCOME-TAX
(APPEALS)

Q1.The Commissioner of Income-tax (Appeals) is the ________ appellate authority.

(a) First (b) Second
(c) Third (d) Fourth
Correct answer : (a)
Justification of correct answer :
The Commissioner of Income-tax (Appeals) is the first appellate authority.
Thus, option (a) is the correct option.
Q2.Section ________ specifies the orders against which an appeal can be filed before the
Commissioner of Income-tax (Appeals).
(a) 261 (b) 260A
(c) 253 (d) 246A
Correct answer : (d)
Justification of correct answer :
Section 246A specifies the orders against which an appeal can be filed before the
Commissioner of Income-tax (Appeals).
Thus, option (d) is the correct option.
Q3.Where the appeal relates to any assessment or penalty, the same should be presented
within 30 days from the date of service of notice of demand relating to the assessment or
penalty.
(a) True (b) False
Correct answer : (a)
Justification of correct answer :
Appeal should be presented within 30 days of 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) Where appeal is under section 248, i.e., appeal by a person denying liability to
deduct tax under section 195, the date of payment of tax.
(c) In any other case, the date on which intimation of the order sought to be appealed
against is served.
Thus, the statement given in the question is true and hence, option (a) is the correct
option.

[As amended by Finance Act, 2019]

Q4.Application for condonation of delay in filing the appeal, giving the reasons for the
delay along with necessary evidences should be filed in Form No. 34C.
(a) True (b) False
Correct answer : (b)
Justification of correct answer :
Application for condonation of delay in filing the appeal, giving the reasons for the delay
along with necessary evidences should be filed in Form No. 35 (i.e., form of appeal).
Thus, the statement given in the question is false and hence option (b) is the correct
option.
Q5.An appeal to the Commissioner of Income-tax (Appeals)shall be filed in Form No.
________.
(a) 34B (b)35
(c) 34C (d) 28
Correct answer : (b)
Justification of correct answer :
An appeal to the Commissioner of Income-tax (Appeals)shall be filed in Form No. 35.
Thus, option (b) is the correct option.
Q6.In case of a Hindu Undivided Family, the form of appeal, the grounds of appeal and
the form of verification are to be signed and verifiedby the Karta of the family.
(a) True (b) False
Correct answer : (a)
Justification of correct answer :
In case of a Hindu Undivided Family, the form of appeal, the grounds of appeal and the
form of verification are to be signed and verified by the Karta of the family.
Thus, the statement given in the question is true and hence, option (a) is the correct
option.
Q7.Copy of challans of fees paid is not required to be submitted along with the Form No.
35 (i.e., a Form of appeal).
(a) True (b) False
Correct answer : (b)
Justification of correct answer :
Documents to be submitted for appeal are as follows:
• Form No. 35 (including Statement of Facts and Grounds of Appeal) - in duplicate.

[As amended by Finance Act, 2019]

 • One certified copy of order, appealed against.
• Notice of demand in original.
• Copy of challans of fees.
Thus, the statement given in the question is false and hence, option (b) is the correct
option.
Q8.Where assessed income (i.e. total income as determined in the assessment) ismore
than Rs. 1,00,000 but less thanRs. 2,00,000, the fees for filing the appeal before the
Commissioner of Income-tax (Appeals) are ___________.
(a) Rs. 250 (b) Rs. 500
(c) Rs. 1,000 (d) Rs. 10,000
Correct answer : (b)
Justification of correct answer :
The fees for filing the appeal before the Commissioner of Income-tax (Appeals) are as
follows :
Where assessed income (i.e. total income as determined in the assessment) 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.

Thus, option (b) is the correct option.

Q9.During the course of appeal, the Commissioner of Income-tax (Appeals) cannot allow
the taxpayer to go into additional grounds of appeal.
(a) True (b) False
Correct answer : (b)
Justification of correct answer :
During the course of appeal, the Commissioner of Income-tax (Appeals) may allow the
taxpayer to go into additional grounds of appeal. However, additional grounds will be
accepted only if the Commissioner of Income-tax (Appeals) is satisfied that omission of
these grounds from the form of appeal was not wilful or unreasonable.
Thus, the statement given in the question is false and hence, option (b) is the correct
option.

[As amended by Finance Act, 2019]

Q10.The Commissioner of Income-tax (Appeal) shall dispose off the appeal within a
period of ________ from the end of the financial year in which appeal is filed.
(a) 3 months (b) 6 months
(c) 1 year (d) 2 years
Correct answer : (c)
Justification of correct answer :
Where it is possible, the Commissioner of Income-tax (Appeal) shall dispose off the
appeal within a period of one year from the end of the financial year in which appeal is
filed.
Thus, option (c) is the correct option.

[As amended by Finance Act, 2019]