Things you should know regarding Income Tax Appeal

‘Appeal’ as per the One Law Dictionary is defined as a proceeding which is taken to amend a wrong and incorrect decision of a court by enduring the question to a higher court or the court of appeal. The right to appeal under the law of Income Tax is a formation of rule or law and not a latent right.

The appeal is only applicable to be filed against the orders which are listed in the Income tax act and not just any order. The liability of Income Tax is resolved at the Assessing Officer level first. A taxpayer wronged by many different actions of Assessing officer can make an appeal before Commissioner of Income Tax. An additional appeal can be sanctioned before the Income Tax Appellate Tribunal. On the Important question of law, you can file a further appeal before the HC or even to the SC.

Filing, Forms, and Challans of Income Tax Appeals

An appeal before CIT (A) i.e. Commissioner of Income Tax (Appeals) is made through a memo of appeal in form no. 35. An appeal before ITAT has to be filed in the form no. 36. Additionally, a cross-objection is also made in the form 36A.

An individual taxpayer can also sign the Form of Appeal himself or can get it signed by a person who is rightfully sanctioned by him holding a credible Power of Attorney. In a case of HUF, the appeal is signed by the Karta and in the case of a company; it is signed by the Managing director. In the case of a firm, an authorized partner can sign the appeal.

Admitted Tax’s Payment

According to Sec 249 (4) of Income Tax Act, 1961, no appeal should be received by the CIT (A) unless; the assessee has paid the following at the time of filing the appeal:

1. Due taxes on the returned income or
2. Where no return is filed, an amount proportionate to the amount of the advance tax that was due by him.

The CIT (Appeals) is authorized, for any sufficient and good reason, to spare the assessee from the affair of this arrangement in the case of 2.

An appeal can only be filed once the Appeal fee is paid. The challan form called Challan no. 280 has to be used. Make sure you write the correct PAN (Permanent Account Number).