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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