Appeals Under Income Tax Act, 1961

If you are received a demand as raised by the Assessing Officer in the assessment, what’s the next step for you ?

Aggrieved tax payer can file appeal before the Commissioner (Appeals) having, jurisdiction over the tax payer.

Designation of the Commissioner (Appeals), with whom appeal is to be filed is also mentioned in the notice of demand issued by the Assessing Officer under section 156 of Income Tax Act.

APPEAL BEFORE COMMISSIONER (APPEALS)/ CIT(A)

Appeal can be filed before Commissioner (Appeals), when a tax payer is adversely affected by Orders as under passed by various Income tax authorities i.e:

• Order against tax payer where the tax payer denies liability to be assessed under Income Tax Act;
• Intimation issued under Section 143(1) making adjustments to the returned income ;
• Scrutiny assessment order u/s 143(3) or an ex-parte assessment .order u/s 144, to object to income determined or loss assessed or tax determined or status under which assessed,
• Order u/s 115WE/115WF/115WG assessing fringe benefits;
• Re-assessment order passed after reopening the assessment u/s 147/150;
• Search assessment order u/s 153A or 158BC;
• Rectification Order u/s 154/155;
• Order u/ s 163 treating the taxpayer as agent of a nonresident;
• Order passed u/s 170(2)/(3) assessing the successor to the business in respect of income earned by the predecessor;
• Order u/s 171 recording finding about partition of Hindu undivided family(HUF);
• Order u/s 115VP(3) refusing approval to opt for tonnage-tax scheme by qualifying shipping companies;
• Order u/s 201(1)/206C(6A) deeming person responsible for deduction of tax at source as assessee in default on failure to deduct/ collect tax at source or to pay the same to the Government;
• Order determining refund u/s 237; Order imposing penalty u/s 221/271 /271A/271AAA/ 271F/271FB/272A/272AA/272BB/275(1A)/158BFA(2)/271B/ 271BB/271C/271CA/271D/271E

APPEAL BEFORE INCOME TAX APPELLATE TRIBUNAL (ITAT)

Appeal against an order of Commissioner (Appeals) lies with the Income Tax Appellate Tribunal (ITAT). Both tax payer and the Assessing Officer can file appeal before the Appellate Tribunal. Several Benches of the Appellate Tribunal comprising judicial and accountant members have been constituted all over India.

ORDERS AGAINST WHICH APPEAL CAN BE FILED BEFORE APPELLATE TRIBUNAL:

Tax payer can file appeal before the Income Tax Appellate Tribunal against the following orders:

• Order by Commissioner(Appeals) u/s 250/154/271/ 271A/272A;
• Order by Assessing Officer u/s 158BC(c) in respect of search action initiated during 30.6.1995 to 1.1.1997;
• Order by Assessing Officer u/ s 115 VZC excluding the tax payer from tonnage tax scheme;
• Order by Commissioner u/s 12AA on registration application by a charitable or religious trust;
• Order by the Commissioner u/s 80G(5)(vi) regarding approval of a charitable trust for donations made after 31.3.92;
• Order by Commissioner u/s 263 revising Assessing Officer’s order considered prejudicial to the interest of revenue;
• Order by Commissioner u/s 154 to rectify an order u/s 263;
• Penalty order passed by Commissioners u/s 271 or section 272A;
• Penalty order passed by Chief Commissioner/ Director General/Director u/s 272A;
• Order passed by Assessing Officer u/s 143(3)/147 in pursuance of direction of Dispute;

APPEAL BEFORE HIGH COURT

Appeal against Appellate Tribunal’s order lies with the High Court, Where the High Court is satisfied that the case involves a substantial question of law. Appeal to the High Court against Appellate Tribunal’s order can be filed by the tax payer or the Chief Commissioner/Commissioner within 120 days of receipt of the order and in the form of memorandum of appeal, precisely stating the substantial question of law involved. If the High Court is satisfied that a substantial question is involved, it would formulate that question. High Court hears the appeal only on the question of law so formulated; however, the respondents can argue at the time of hearing that case does not involve such question of law. Appeal filed before High Court is heard by bench of not less than two Judges and decision is by majority.

APPEAL BEFORE SUPREME COURT

Appeal against High Court’s order in respect of Appellate Tribunal’s order lies with the Supreme Court in those cases, which are certified to be fit one for appeal to the Supreme Court. Special leave can also be granted by the Supreme Court under Art. 136 of the constitution of India against the order of the High Court.

We are highly experienced team of professionals who can help you through the process and ensure a smooth filing of appeal at every level as explained above.