According to the provisions of Section 246 any assessee who is aggrieved by an order, passed by the Assessing Officer may prefer an appeal to the Commissioner of Income-tax (Appeals).

The Commissioner of Income-tax (Appeals) or the Appellate Tribunal may admit an appeal, beyond the period of limitation, if it is satisfied that there was sufficient cause for not presenting the appeal, within time.

An appeal can be filed against the order of the Commissioner of Income-tax (Appeals).

Under Section 253 of the Income-tax Act, an assessee, who is aggrieved by an order, passed by a Commissioner of Income-tax (Appeals), can prefer an appeal to the Income-tax Appellate Tribunal. Similarly, the Commissioner (Administration) can object to any order of the Commissioner of Income-tax (Appeals) and, file an appeal to the Appellate Tribunal.

Time limit for preferring an appeal.

The period of limitation for preferring an appeal to the Commissioner of Income-tax (Appeals) is thirty days from the receipt of the order of the assessing officer and, for preferring an appeal to the Appellate Tribunal, the limitation is sixty days from the date on which the Commissioner’s, order is communicated.

An appeal can be presented by registered post or, must it always be sent by hand delivery.

The appeal can be presented by hand delivery or, can be sent by registered post. However, the appeal, if it is sent by registered post, the same should reach the authorised officer, within the period of limitation, as mentioned above.

Fees, payable to file an appeal.

For filing an appeal to the Commissioner of Income-tax (Appeals), the prescribed fees are as follows:-

1. Rs. 250/-, where the Assessed income is Rs.1 lakh or less;
2. Rs.500/-, where the Assessed income is over Rs.1 lakh but less than Rs.2 lakhs;
3. Rs.1, 000/-, where the Assessed income is over Rs. 2 lakh.

For preferring an appeal to the Appellate Tribunal, the prescribed fee is as under:-

1. Rs.500/-, where the Assessed income is Rs.1 lakh or less;
2. Rs.1500/-; where the assessed income is more than Rs.1 lakh, but less than Rs.2 lakhs;
3. 1% of the assessed income, subject to a maximum of Rs.10,000/-, where the assessed income is more than Rs.2 lakhs.

Prescribed forms for presenting an appeal

For presenting an Income-tax appeal before the Commissioner, the prescribed form is Form No.35, while for an appeal to the Appellate Tribunal; the prescribed form is Form No.36.

How to draft the appeal?

Every memorandum of appeal, whether in Form No.35 or 36, shall be written in English. The grounds of appeal should be concise, without any argument or narration and, should be numbered, serially, under distinctive heads. With the memorandum, it is necessary to prepare a statement of facts in such a manner so as to bring out clearly the issue, raised in the order of the Assessing Officer, under challenge. There is, however, no requirement for filing a separate statement of facts before the Appellate Tribunal as the statement of facts, filed before the Commissioner of Income-tax (Appeals), would be annexed with the Memorandum of Appeal to the Appellate Tribunal.

If I forget to raise an issue before the Commissioner of the Appellate Tribunal, can I raise the issue at a later stage?

While drafting the appeal, a lot of care should be taken, so as to include all the grounds, therein. Though the Commissioner of Income-tax (Appeals) or, the Appellate Tribunal has the powers to entertain additional grounds, the same can be raised, only, before the disposal of the appeal and, with the permission of the appellate authority. For admission of the additional grounds, the person must have adequate reasons for not raising the ground at the time of filing the appeal.

Can the Memorandum of appeal be signed by my Advocate or Chartered Accountant?

The form of appeal shall be signed and verified by the assessee or, by a person, who is authorised to sign the return of income, or, by a Constituted Attorney of the Power of Attorney, specifically, mentioning the same. This power has been given to the Advocate or Chartered Accountant, specifically and the appeal may be signed only by such person. However, a letter of authority to appear may not include the power to sign an appeal.

Will I be informed about the hearing of the appeal or, will it be disposed of on the basis of my Memorandum that I have filed?

The Commissioner of Income-tax (Appeals) or the Appellate Tribunal would issue a notice of hearing to the assessee, at the address shown in the Memorandum of Appeal. After giving an opportunity of hearing the assessee, in person or, through his representative, he will pass orders, agreeing or disagreeing with the grievance of the assessee. The Appellate Authority would pass specific and clear orders on the issues, raised by the assessee and, give reasons for passing the same, and may, also, set aside the assessment, if further investigation or, a re-consideration is required.