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How to File Appeal in Income Tax with Form 35

As a taxpayer, you have a vested power to file an appeal in income tax if you are not convinced about the assessment made by the Assessing officer or the order passed by them regarding your total income. However, it is crucial to understand the appeal process and follow the guidelines to do it legitimately. You can file an appeal by filling up and submitting Form 35 to the IT Department. Additionally, the appeal should be set in motion once you receive the demand notice you do not agree with. In this article, we will share a complete overview of the process of filing an appeal for Income Tax.


 

Table of Content

 

When Can You File an Appeal in Income Tax: Section 246A of Income Tax Act 

Section 246A of the Income Tax Act lists the orders against which a taxpayer can file an appeal before the Commissioner of Income Tax (Appeals). These include: 

  • Receiving an order where a taxpayer is not liable to pay tax

  • Receiving a notice under Section 143(1)/1(B) where income remitted in the returns have been adjusted

  • An assessment order under Section 143(3) (except the cases where an order is passed under the Dispute Resolution Panel)

  • An assessment order under Section 144

  • An assessment, re-assessment, or re-computation order passed after reopening the assessment under Section 147 (except the cases where an order is passed under the Dispute Resolution Panel)

  • An order issued according to Section 150

  • An assessment or reassessment passed under Section 153A/158C during search or seizure

  • A rectification order passed under Section 154 or Section 155

  • The taxpayer is considered an agent of a non-resident under Section 163

  • An order under Section 170 (2)/(3) that taxes a business successor for the income earned by the predecessor

  • An order under Section 171 that records the findings of the HUF (Hindu Undivided Family)

  • An order under Section 201(1)/206C(6A) where an individual defaults in terms of non-deduction of TDS, non-collection of TCS, or non-payment of credits to the government

  • A notice under Section 200A(1) when the filed statements have been adjusted

  • An order for the refund under Section 237

  • An assessment or reassessment order under Section 92CD(3)

  • An order by the Joint Commissioner under Section 115 VP(3) declining the approval to opt tonnage-tax scheme for shipping companies

  • An order for 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


What is Form no 35 of the Income Tax Act?

Form 35 is a form that assesses or deducts by an assessment order an Assessing Officer can use to file an appeal. The appeal can be filed to the Commissioner of Income Tax (Appeals) by submitting a duly filled Form 35. Individuals mandated to e-file income tax returns can e-file Form 35. Alternatively, you can file it offline if you do not file your tax returns online. While filing Form 35, you should file your appeal with a Memorandum of Appeal. Other steps include providing a statement of facts and explaining the ground behind your appeal. Additionally, Form 35 should be accompanied by a copy of the order you are appealing against the notice of demand.


Time Limit to File an Appeal in Income Tax

If you are qualified to file an appeal, you need to be proactive about the timelines to make the most of the provision. Skipping the deadline means missing out on the chance. You are required to file an appeal for penalty or revaluation within 30 days of receiving the notice from the IT department. You need to do it even sooner if you have not deducted tax at source. In that case, your appeal timeline is within 30 days of paying the TDS due from your end.


Procedure for Filing an Appeal in Income Tax

The procedure for filing an appeal against income tax assessment includes several steps. You need to start by submitting an application in Form 35. After receiving it, the Commissioner of Income-tax (Appeals) will schedule a date and venue for hearing the appeal. You and the Assessing Officer will get a notice announcing the appointed date and place. During the appeal, both parties have the option to appear personally or through a representative.

During the hearing process, the Commissioner of Income Tax (Appeals) may postpone the appeal from time to time, if required. Further, they make inquiries for the appeal and direct the Assessing Officer to submit a report by conducting further inquiries. Taxpayers should exhaust this legal remedy by filing an appeal with the Commissioner of Income Tax (Appeals) having the relevant jurisdiction before filing a petition to a court regarding a dispute in Income Tax.


List of Documents

Here is a list of documents you need to provide during the appeal process:

  • Form 35

  • A copy of the assessment order

  • Original demand notice

  • A copy of the challan for the payment of income tax pertaining to the relevant assessment

The appeal form should be signed and verified by:

  • The taxpayer or a representative for an appeal made by a taxpayer

  • Managing Director or other directors for an appeal made by a company

  • Managing Partner or other partners (who are not minors) for an appeal made by a firm

  • Representative of the company for an appeal made by a foreign company 

  • Designated Partner or other partners for an appeal made by an LLP

  • Principal Officer for an appeal made by a local authority

  • Chief Executive Officer of the party for an appeal made by a political party

  • Principal Officer or any member of an Association for an appeal made by the association


How to Download and File Form 35?

You can download Form 35 from the income tax website to file an appeal in the offline mode. Alternatively, you can file it online by filling it up on the official e-filing portal of the Income Tax Department. Here are the steps you need to follow:


Step 1: Visit the official income tax e-filing website and log in with your user ID and password.

log in account with your user ID and password.

Step 2: You will see a new page. Click on “e-file” from the taskbar followed by “Income Tax Form” in the drop-down menu. Select the “File Income Tax Forms” option.

 Select the File Income Tax Forms option

Step 3: Enter “Form 35” in the search bar on the “File Income Tax Forms” page and click on it once you see the option. 

 Enter Form 35 Then Click on File Now

Step 4: Click “Let’s Get Started” on the new page.

Click on Let’s Get Started

Step 5: The Form 35 page will open now. Fill in the required and click “Preview”.

Enter Details for each section and Click on Preview

Step 6: Check details on the “Preview” page and click “Proceed to E-Verify”.

Check details on the Preview page

Step 7: You will see a dialogue box for a confirmation to proceed on the screen. Click “Yes”.

See Dialogue box for a confirmation to proceed on the screen. Click  on Yes

Step 8: An e-verification page will open, and you will have to verify the form here. You will see a success message on the screen after a successful verification. It will also display the Transaction ID and Acknowledgement Number. Note them for future reference.


e-verification page will open

Step 9: At the end of the process, you will get an SMS and email confirmation on the registered phone number and email ID.


get an SMS and email confirmation on the registered phone number and email ID

Submitted Successfully

How to Pay Appeal Fees for income Tax?

You must pay the appeal fees before filing an appeal to the Commissioner of Income Tax (Appeal). The amount of the fees is variable according to the total income calculated by the Assessing Officer (AO). After paying the fees, you need to attach the payment proof to Form 35. Here are the fee amounts for different income figures:

  • Total income less than or equal to Rs. 1,00,000- Rs. 250

  • Total income more than Rs. 1,00,000 but less than Rs. 2,00,000- Rs. 500 

  • Total income of more than Rs. 2,00,000- Rs. 1,000

  • Other appeals- Rs. 250


Conclusion

The appeal process for showing non-agreement with an order passed by the Assessing Officer regarding additions, exemptions, benefits of losses, reduction of benefits, etc. is simple. You must follow these steps and ensure properly fill up Form 35. Consulting an expert is a good idea so that you can complete the process without errors or omissions.



FAQ

Q1 . How to file an appeal in Income Tax with Form 35 online? 

You can file an appeal by filling out Form 35 online by logging in to the e-filing portal using your credentials. Choose the “e-file” option on the taskbar and select “Income Tax Forms” from the drop-down menu. Choose “Form No. 35 – Appeal to Commission Appeals” in the form names menu to open it. Fill up all the required information, verify the form, and submit it to raise your appeal. 


Q2. What should I fill in Form 35? 

Any assessee or deductor who does not agree with an order announced by an Assessing Officer can rightfully file an appeal against it via Form 36. While filling up Form 35, you need to submit information about the order against which you want to file the appeal, details of the appeal and taxes paid, and a statement of facts with the grounds of the appeal. After filling up these details, you need to submit Form 36 before the Commissioner of Income Tax (Appeals) online or offline.


Q3. What are the appeal fees for Form 35? 

Form 35 appeal fees are variable depending on total income determined by the Assessing Officer. It amounts to Rs. 250 for a total income of Rs. 1 lakh or less, Rs. 500 for income more than Rs. 1 lakh and less than Rs. 2 lakh, and Rs. 1000 for income more than Rs. 2 lakh. You need to pay Rs. 250 when appealing for any other reason.


Q4. Is it possible to revise Form No. 35?

Yes, you can revise Form 35 by submitting an offline application to the Commissioner of Income Tax (Appeal). 


Q5. What is the time limit for Form 35?

You can file an appeal via Form 35 within 30 days starting from the date of the order by the Assessing Officer or demand as relevant. 


Q6. How can I check the status of my Form 35? 

You can check the status of your Form 35 by using the same steps as for checking your ITR filing status. Visit the e-filing portal and log in with your user ID and password. Select “e-File” from the taskbar, choose “Income Tax Return”, and then click “View Filed Returns”. You will be redirected to a new page where you can see the status of all the returns filed. 


Q7. What is Rule 45 of income tax?

Rule 45 of the Income Tax Rules discusses the provision related to the submission of the appeal form to the Commissioner of Income Tax (Appeal). According to Rule 45, an appeal to the Commissioner of Income Tax (Appeals) has to be made by submitting essential information regarding the order and stating the ground behind the appeal. 









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