Income Tax Appeal Form 35 –
Complete Guide to File Appeal Online

Income tax appeals can be filed before the following Forums in the under-mentioned order:

For any online or offline Income tax assessment order passed against the taxpayer in a case where the taxpayer denies the liability to be assessed under Income Tax Act, they can file a first appeal against the order before the Commissioner of Income-tax (Appeals) being the first appellate authority.

Section 246A specifies the orders against which an appeal can be filed before the Commissioner of Income-tax (Appeals). An appeal against Income tax assessment order can be filed before the first appellate authority for any of the following orders:

• Intimation issued under section 143(1)/(1B) with adjustments in Returned income
• Intimation issued under section 200A(1) / 206CB(1) with adjustments 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 or 144BA(12)
• Order of Assessment, Re-assessment or Re-computation passed after reopening the assessment under section 147 except an order passed in pursuance of directions of the Dispute Resolution Panel
• Order of Assessment, Re-assessment or Re-computation passed after reopening the assessment under section 144BA(12) or section 150
• An order of assessment or reassessment passed under section 153A except an order passed in pursuance of directions of the Dispute Resolution Panel or under section 158BC in case of search/seizure
• Order passed under section 92CD(3) for effect to advance pricing agreement
• 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 for Succession to business otherwise than on death
• Order passed under section 171 for Assessment after 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) for failure to deduct tax at source or to pay the same to the credit of the Central Government
• Order passed under section 206C(6A) for failure to collect tax at source or to pay the same to the credit of the Central Government
• Order determining refund passed under section 237
• Order imposing penalty under Chapter XXI
• Order imposing penalty under section 221 for Penalty payable when tax in default
• Order imposing penalty under sections 271, 271A, 271AA, 271AAA, 271AAB, 271AAC, 271AAD, 271B, 271BA, 271BB, 271C, 271CA, 271D, 271DA, 271DB, 271E, 271F, 271FA, 271FAA, 271FAB, 271FB, 271G, 271GA, 271GB, 271H, 271-I, 271J, 271K
• Order imposing penalty under sections 272A, 272AA, 272B, 272BB, 273, 158BFA(2)
• Appeal can also be made before the Commissioner of Income-tax (Appeals) under section 248 by a person denying liability to deduct tax under section 195 on any income, other than interest

Section 249(1) read with Rule 45 of the Income-tax Rules, 1962 specifies a new Form No. 35 for filing an appeal before Commissioner of Income Tax (Appeals).

• Personal information with correct mail address and phone number for communication
• Assessment year
• Details of the Order appealed against
• Income-tax Authority passing the order appealed against
• Detail of other pending appeals, if any
• Section and sub-section of the Income-tax Act, 1961 under which the appeal is preferred
• Detail of addition / disallowances and demands made in assessment and to be disputed
• Detail of penalty imposed in assessment and to be disputed
• Details of Original return filed by the taxpayer and where no return has been filed by the appellant for the assessment year, whether an amount equal to the amount of advance tax as per section 249(4)(b) has been paid
• If the appeal relates to any tax deductible under section 195 and borne by the deductor, details of tax deposited under section 195(1)
• Statement of Facts — Facts of the case (not exceeding 1000 words), limited to the subject matter of appeal, only relevant facts summarized and not the whole order; List of documentary evidence relied upon; List of additional evidences not submitted before the Assessing Officer
• Grounds of Appeal — Each ground not exceeding 100 words, referring to the relevant provision/section of the Income Tax Act; Separate ground for each subject matter; Clear, specific and unambiguous grounds; Legal standings may also be beneficial
• If there is delay in filing appeal, grounds for condonation of delay (not exceeding 500 words)
• Details of Appeal Fees Paid (BSR code, date of payment, serial number and amount)
• Address to which notices may be sent to the appellant

Form No. 35 in original (including statement of facts and grounds of appeal) — in duplicate if filed in paper form, to be accompanied with:

• One certified copy of order appealed against
• Copy of Notice of demand
• Copy of challans of fees paid for filing the appeal (BSR code, date of payment, serial number and amount)

Section 249(1) read with Rule 45 specifies the manner for verification/signing of Form of Appeal. The form is to be signed by the person authorised to sign the return of income under section 140:

• Individual taxpayer — by the individual himself or by a person duly authorized holding a valid power of attorney
• Hindu Undivided Family — by the Karta, or if Karta is absent/incapable, by any other adult member
• Company — by the Managing Director, or if unavailable, by any director
• Foreign Company — by a person holding a valid power of attorney from such company
• Firm — by the Managing Partner, or if unavailable, by any partner (not a minor)
• LLP — by the Designated Partner, or if unavailable, by any partner
• Local Authority — by the Principal Officer thereof
• Political Party — by the Chief Executive Officer
• Association — by the Principal Officer or by any member
• Any other Person — by that person or by some person competent to act on their behalf

Section 249(1) specifies the fees to be paid for filing an appeal before the Commissioner of Income Tax (Appeals). Where assessed income (i.e. total income as determined by the Assessing Officer) is:

Section 249(2) specifies the time limit for filing an appeal before the Commissioner of Income-tax (Appeals):

• Section 246A orders: Appeal to be filed within 30 days of the date of service of notice of demand / order sought to be appealed against
• Section 248 orders: Appeal should be presented within 30 days of the date of payment of tax

Income tax appeal filed under the Income Tax Act can be tracked via the 'E-Proceeding' facility through your account on the e-filing website of the Income Tax Department:

Section 250 enumerates the procedure for handling of appeals filed before the Commissioner of Income-tax (Appeals):

• After receipt of Form No. 35, the National Faceless Appeal Centre shall assign the appeal for disposal to a Commissioner (Appeals) of a specific appeal unit
• On assignment, the Commissioner of Income-tax (Appeals) will fix the date and place for hearing the appeal
• The Commissioner of Income-tax (Appeals) may condone the delay in filing if the appeal is filed beyond the time permitted under section 249 and record the reasons in the appeal order
• Date and time for filing submissions will be communicated to the taxpayer and to the Assessing Officer via a notice to both parties
• In the appeal proceedings the taxpayer or the Assessing Officer can either present submissions personally or through an authorized representative, including written submissions and Paper Book
• The Commissioner of Income-tax (Appeals) would hear the appeal and may obtain such further information, document or evidence as may be required 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
• Additional grounds of appeal not specified in Form No. 35 may be allowed after considering the report of the Assessing Officer and only if omission was not willful or unreasonable
• Additional evidences not submitted before the Assessing Officer may be accepted in terms of Rule 46A after considering the Assessing Officer's report and the taxpayer's rebuttal reply

If the Commissioner (Appeals) intends to enhance an assessment or a penalty or reduce the amount of refund, as per section 251, the Commissioner (Appeals) shall prepare and send a show-cause notice containing reasons for such enhancement or reduction, specifying date and time to provide a reasonable opportunity to the taxpayer.

After hearing the case/arguments, the Commissioner of Income-tax (Appeals) will pass an order in writing, stating the decision on each ground of appeal along with reasons. The Commissioner may also consider and decide any matter arising out of the proceedings, even if not raised by the taxpayer.

During the first appeal proceedings, the taxpayer is permitted to produce only those evidences which were produced before the Assessing Officer. However, additional evidence will be accepted by the Commissioner of Income-tax (Appeals) in the following circumstances:

• Where the Assessing Officer has refused to admit evidence which ought to have been admitted
• Where the taxpayer was prevented by sufficient cause from producing the evidence which they were called upon to produce by the Assessing Officer
• Where the taxpayer was prevented by sufficient cause from producing any evidence before the Assessing Officer which is relevant to any ground of appeal
• Where the Assessing Officer has made the order appealed against without giving sufficient opportunity to the taxpayer to adduce evidence relevant to any ground of appeal

The taxpayer has to make an application for acceptance of additional evidences. On receipt, the Commissioner of Income-tax (Appeals) may admit the same after recording reasons in writing. Before taking into account the additional evidence, the Commissioner provides a reasonable opportunity to the Assessing Officer for examining the additional evidence and to produce rebuttal evidences.

The Finance Act, 2020 authorized the Central Government to notify an appeal scheme for disposal of appeal so as to impart greater efficiency, transparency and accountability by:

• Eliminating the interface between the CIT(A) and the appellant in the course of appellate proceedings to the extent feasible technologically
• Optimizing the utilization of the resources through economies of scale and functional specialization
• Introducing an appellate system with dynamic jurisdiction in which appeal shall be disposed of by one or more CIT (Appeals)

• Such disputes will be first assigned by the National Faceless Appeal Centre to a commissioner (appeals) of a specific appeal unit through an automated allocation system
• The revised scheme vests all power of condonation of delay, additional evidence and additional grounds with the commissioner (appeals)
• The revised scheme mandates the commissioner (appeals) to allow all requests for personal hearing via video conference when a tax demand is raised by the department
• The date and time of hearing will be communicated to the taxpayer via the National Faceless Appeal Centre