Appeal is a petition against an order of assessing officer when an assessee is not satisfied with the order of assessing officer he may file an appeal against his order or may apply for its revisions to the commissioner of income tax.
Income Tax Appeal Process
Income tax liability is determined at the level of Assessing Officer first. A taxpayer aggrieved by the actions of the Assessing Officer can appeal as follows:
The first level of appeal – Commissioner of Income Tax (Appeals)
Applellate Section : 246A to 249
Appeal Form : 35
Time Limit of filling Appeal : 30 days
Secondly if dissatisfied with CIT(A) order – Income Tax Appellate Tribunal (ITAT)
Applellate Section : Sec 253
Appeal Form : 36
Time Limit of filling Appeal : 60 days
Third for substantial questions of law after ITAT decision – High Court
Applellate Section : Sec 260A
Time Limit of filling Appeal : 120 days
The final appeal, only on significant legal matters – Supreme Court
Applellate Section : Sec 262
Threshold for Filing Appeals by Income Tax Department
The Income Tax Department has raised the threshold limit for filing appeals in various judicial forums. The revised limits, as per a CBDT circular, are:
| Appellate Forum | Monetary Limit [Till 16th Sep 2024] | Revised Monetary Limit [From 17th Sep 2024] |
| Before Income Tax Appellate Tribunal | 50,00,000 | 60,00,000 |
| Before High Court | 1,00,00,000 | 2,00,00,000 |
| Before Supreme Court | 2,00,00,000 | 5,00,00,000 |
Applicability
The revised threshold limits is also applicable to cases, including disputes related to TDS and TCS.
Appeals Based on Merits, Not Just Tax Effect
Tax authorities are advised to focus on merit-based decisions, not just monetary limits. The aim is to reduce unnecessary litigation and offer certainty to taxpayers.
Conclusion
With the higher thresholds, fewer cases will need to go to higher courts and will help to settle disputes faster at lower levels.
Tax authorities should focus on important cases, not just on those that meet the monetary limit. This should lead to smoother, more balanced outcomes for everyone involved.