During an income tax assessment, there may be instances when the taxpayer is not satisfied with the assessment made by the Assessing Officer. In such occurrences, the taxpayer is entitled to file an appeal against the Assessing Officer. Appeal of income tax order has to be filed before the Commissioner of Income Tax (Appeals). In this article, we look at the various prerequisites required to file an appeal to Commissioner of Income Tax (Appeals).
Section 246A of Income Tax Act enumerates the orders against which an appeal can be filed before the Commissioner of Income Tax (Appeals). All appeals have to be made to the Commissioner of Income Tax (Appeals), who is considered to be the first appellate authority. An appeal can be made under the following circumstances:
- When a taxpayer is served with an order where he is not liable to pay tax under the Income Tax Act.
- When a taxpayer is issued a notice under Section 143(1)/1(B) where Income remitted in the returns of income have been adjusted.
- When a taxpayer is issued with a notice under Section 200A(1) where the filed statements have been adjusted.
- When an assessment order has passed under Section 143(3) other than cases when an order has passed under the Dispute Resolution Panel.
- When an assessment order has been passed under Section 144.
- When an order of assessment, re-assessment or re-computation that has been passed after reopening the assessment according to Section 147 other than cases when an order has passed under the Dispute Resolution Panel.
- When an order has been issued according to Section 150.
- When an order of assessment or reassessment has been passed under Section 153A or Section 158C during search or seizure.
- When an assessment or reassessment order has been passed under Section 92CD(3).
- When a rectification order has been passed under Section 154 or Section 155.
- When the taxpayer is considered to be an agent of non-resident under Section 163.
- When an order has been passed under Section 170 (2)/(3) taxing the successor in the business for the income that is earned by the predecessor.
- When an order has been passed under Section 171 that records the findings of the Hindu Undivided Family.
- When an order has been passed by the Joint Commissioner under Section 115 VP(3) that declines the approval to opt tonnage-tax scheme for qualifying shipping companies.
- When an order has been passed under Section 201(1)/206C(6A), where a person has defaulted in terms of non-deduction of tax at source, non-collection of tax at source or non-payment of credits to the government.
- When an order has been issued for the refund according to Section 237.
- When an order has been issued for commanding penalty according to Section(s)221/271/271A/271AAA/271F/271FB/272A/272AA/272B/272BB/275(1A)/158B FA(2)/271B/271BB/271C/271CA/271D/271E/271AAB.
An appeal for any assessment or penalty should be made within 30 days from the date of service of the demand notice. An appeal by a person who fails to deduct tax at source should be filed within 30 days of the date of payment of tax. In all other cases, an appeal can be made within 30 days from the date of issuing the intimation of the particular order.
To appeal an income tax assessment, the taxpayer must submit an application in Form 35. On submission of Form 35, the Commissioner of Income-tax (Appeals) schedules a date and place for hearing the appeal. The appointed date and place will be announced to the taxpayer and to the Assessing Officer by issuing a notice to both the parties. During the appeal, the taxpayer and the Assessing Officer can appear personally or through a representative. The Commissioner of Income Tax (Appeals) hears the appeal and postpones the appeal from time to time (if required), he/she would also make inquiries for the appeal and directs the Assessing Officer to conduct further inquiries and submit the report.