APPEAL TO COMMISSIONER OF INCOME-TAX (APPEALS) i.e. CIT (A)
Article discusses about Appealable order, Time-limit for presenting an appeal, Form of appeal, Signature to the appeal, Pre-deposit of tax, Documents to be submitted for appeal, Fees, Procedure of the appeal, Filing of additional evidences, Decision of the Commissioner of Income-tax (Appeals), Disposal of appeal,
At times it may happen that the taxpayer is aggrieved by an order of the Assessing Officer. In such a case he can file an appeal against the order of the Assessing Officer before the Commissioner of Income-tax (Appeals).
In this part you can gain knowledge about various provisions relating to appeals to Commissioner of Income-tax (Appeals).
The Commissioner of Income-tax (Appeals) is the first appellate authority. Section 246A specifies the orders against which an appeal can be filed before the Commissioner of Income-tax (Appeals). The list of major orders against which an appeal can be preferred before the Commissioner of Income-tax (Appeals) is given below:
Time-limit for presenting an appeal
As per Section 249(2), appeal should be presented within 30 days of the following date:
(a) Where the appeal relates to any assessment or penalty, the date of service of notice of demand relating to the assessment or penalty.
(b) Where appeal is under section 248, i.e., appeal by a person denying liability to deduct tax under section 195, the date of payment of tax.
(c) In any other case, the date on which intimation of the order sought to be appealed against is served.
The Commissioner of Income-tax (Appeals) may admit belated application on sufficient cause being shown. Application for condonation of delay in filing the appeal, giving the reasons for the delay, along with necessary evidences should be filed with Form No. 35 (i.e., form of appeal). The Commissioner of Income-tax (Appeals) can condone the delay in filing the appeal if genuine reason exists for delay.
Form of appeal
The CBDT had substituted the Rule 45 of Income-tax Rules, 1962 relating to filing of Form of appeal to CIT(A) vide Income-tax (3rd Amendment) Rules, 2016.
By virtue of such amendment, the CBDT had issued a new Form No. 35 for filing an appeal before CIT(A). Further, e-filing of Form has been made mandatory for persons for whom e-filing of return of income is mandatory.
Signature to the appeal
The form of appeal, the grounds of appeal and the form of verification are to be signed and verified by the person authorised to sign the return of income under section 140 as applicable to the taxpayer. In other words, form of appeal is to be signed and verified by following:
(1) In case of appeal by an individual taxpayer, by the individual taxpayer himself or by a person duly authorised by him who is holding a valid power of attorney
(2) In case of a Hindu Undivided Family, by the Karta of the family or if Karta is absent from India or is not capable for signing, by any other adult member of such
(3) In case of a company, by the Managing Director or if Managing Director is not available or where there is no Managing Director by any director of the company.
(4) In case of foreign company, by a person who holds a valid power of attorney from such company
(5) In case of a firm, by the Managing Partner or if Managing Partner is not available or where there is no Managing Partner by any partner (not being a minor)
(6) In case of a LLP, by the Designated Partner or if Designated Partner is not available or where there is no Designated Partner by any partner.
(7) In case of a Local Authority, by the Principal Officer thereof
(8) In case of a Political Party, by the Chief Executive Officer of such party
(9) In case of any other Association, by the Principal Officer thereof or by any member of the Association.
(10) In case of any other Person, by that Person or by some person competent to act on his behalf.
Pre-deposit of tax
Before filing the appeal, the taxpayer should pay the tax determined as per the return of income filed by him.
If no return of income is filed, the taxpayer should pay tax equal to the amount of advance tax payable by him. However, on application made by the taxpayer, the Commissioner of Income-tax (Appeal) may exempt the taxpayer from payment of tax before filing the appeal. Such benefit is granted if good and sufficient reason is proved by the taxpayer for non-payment of tax before filing the appeal.
Documents to be submitted for appeal
The fees for filing the appeal before the Commissioner of Income-tax (Appeals) are as follows :
Where assessed income (i.e. total income as determined by the Assessing Officer) is :
Procedure of the appeal
(*) Additional grounds means grounds which are not specified in Form no. 35
Filing of additional evidences
During the appeal proceedings before the Commissioner of Income-tax (Appeals), the taxpayer is permitted to produce only those evidences (whether oral or documentary) which were produced by him before the Assessing Officer. In other words, the Commissioner of Income-tax (Appeals) will not permit the taxpayer to produce any additional evidences which were not produced by him before the Assessing Officer. However, in following circumstances additional evidence will be accepted by the Commissioner of Income-tax (Appeals)
(a) Where the Assessing Officer has refused to admit evidence which ought to have been admitted; or
(b) Where the appellant was prevented by sufficient cause from producing the evidence which he was called upon to be produced by the Assessing Officer; or
(c) Where the appellant was prevented by sufficient cause from producing any evidence before the Assessing Officer which is relevant to any ground of appeal; or
(d) Where the Assessing Officer has made the order appealed against without giving sufficient opportunity to the appellant to adduce evidence relevant to any ground of appeal.
Decision of the Commissioner of Income-tax (Appeals)
After hearing the case/arguments, the Commissioner of Income-tax (Appeals) will pass his order. The order will be in writing. The order will be passed for disposal of the appeal and will state the decision on each ground of appeal along with reasons.
In case of an appeal against the assessment order the Commissioner of Income-tax (Appeals) may confirm, reduce, enhance or annul the assessment (including assessment in respect of which proceedings before the Settlement Commission abates).
In case of an appeal against the penalty order the Commissioner of Income-tax (Appeals) may confirm, reduce or enhance the penalty.
Before enhancing any assessment or penalty, the Commissioner of Income-tax (Appeals) has to provide a reasonable opportunity to the taxpayer to present his case against such enhancement.
While disposing of an appeal, the Commissioner of Income-tax (Appeals) may consider and decide any matter arising out of the proceedings in which order appealed against was passed, even if such matter was not raised by the taxpayer before the Commissioner of Income-tax (Appeals).
Disposal of appeal
Where it is possible, the Commissioner of Income-tax (Appeal) shall dispose off the appeal within a period of one year from the end of the financial year in which appeal is filed. The order should be issued within 15 days of last hearing. (Instruction No. 20/2003 [file no. 279/Misc 53/ 2003- ITJ], Dated 23.12.2003).
The Finance Act, 2020 authorize the Central Government to notify an e-appeal scheme for disposal of appeal so as to impart greater efficiency, transparency and accountability by:
a) eliminating the interface between the CIT(A) and the appellant in the course of appellate proceedings to the extent feasible technologically;
b) optimising the utilisation of the resources through economies of scale and functional specialisation;
c) introducing an appellate system with dynamic jurisdiction in which appeal shall be disposed of by one or more CIT (Appeals).
Necessary directions to this regard may be made by the Central Government by 31-03-2022. The directions may specify that any of the provisions of this Act relating to jurisdiction and procedure of disposal of appeal shall not apply or shall apply with such exceptions, modifications and adaptations.
Note: The CBDT vide the Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020, dated 31-03-2020, has extended all respective due dates, falling during the period from 20-03-2020 to 29-06-2020, till June 30, 2020.
The benefit of extended due date shall not be available in respect of payment of tax. However, any delay in payment of tax which is due for payment from 20-03-2020 to 29- 06-2020 shall attract interest at the lower rate of 0.75% for every month or part thereof if same is paid after the due date but on or before 30-06-2020.
Republished with amendment.