Income Tax Appeal Process in India: A 2025 Guide

Introduction

The Income Tax appeal process in India is a statutory right granted to taxpayers who are dissatisfied with the orders of the Assessing Officer (AO) or other tax authorities. This multi-tiered framework, governed by the Income Tax Act, 1961, ensures taxpayers have recourse against incorrect or arbitrary assessments. With the growing use of digital platforms and judicial guidance on delay condonation, the process in 2025 is more structured and accessible than ever.

Appeal Forums and Hierarchy

The key appellate forums under the Act include:

1. Commissioner of Income Tax (Appeals) – CIT(A)

2. Income Tax Appellate Tribunal – ITAT

3. High Court (involving a substantial question of law)

4. Supreme Court (by way of Special Leave Petition)

Each stage is governed by its own timeline, form, and filing fee, as explained below.

Types of Appealable Orders

As per Section 246A, an assessee can appeal against various types of orders, including:

• Intimations under Section 143(1) with adjustments

• Assessment or reassessment orders under Section 143(3) or 147

• Orders imposing penalties under Sections 270A, 271, 271AAB etc.

• Denial of exemption or deduction claims under Sections 10, 12AB, 80G

• Orders under Section 154 (Rectification) where not favorable to assessee

• Orders under Section 201 (TDS defaults)

• Orders denying interest or refunds under Section 244A

Appeal Forums and Timelines

The first appellate authority is the Commissioner of Income Tax (Appeals), commonly referred to as CIT(A). An appeal must be filed within 30 days from the date of service of the order. If the assessee is not satisfied with the CIT(A)’s order, a further appeal can be made to the Income Tax Appellate Tribunal (ITAT) within 60 days. If the matter involves a substantial question of law, it can be taken up to the High Court within 120 days of the ITAT order. Finally, an appeal can be made to the Supreme Court within 90 days of the High Court's judgment.

Forms and Fees

To appeal before the CIT(A), Form 35 must be filed electronically through the Income Tax e-Filing portal. The appeal fee depends on the total assessed income. If the assessed income is up to ₹1 lakh, the fee is ₹250. For income between ₹1 lakh and ₹2 lakhs, it is ₹500. For income exceeding ₹2 lakhs, the fee is ₹1,000. For matters not related to income, the fee remains ₹250.

For ITAT appeals, Form 36 is used. If the assessed income is up to ₹1 lakh, the fee is ₹500. For income between ₹1 lakh and ₹2 lakhs, the fee is ₹1,500. For income above ₹2 lakhs, the fee is one percent of assessed income, subject to a maximum of ₹10,000. Applications for stay of demand attract a fee of ₹500. Applications for rectification under Section 254(2) require a fee of ₹50.

Proof of payment must be uploaded along with the appeal form.

Condonation of Delay in Appeal Filing

Courts and tribunals have repeatedly emphasized that delay can be condoned if the assessee can establish "sufficient cause." However, the burden of proof lies on the appellant.

Cases Where Delay Was Condoned

1. CIT v. West Bengal Infrastructure Development Finance Corp Ltd. (2011)

   • The Court accepted the explanation and emphasized justice over procedural rigidity.

2. Collector v. Katiji (1987)

   • Set the precedent that courts should adopt a liberal approach in condoning delays.

3. Karan Johar v. DCIT (2020)

   • Delay accepted due to reasonable cause provided.

Cases Where Delay Was Not Condoned

1. Ajit G. Shah v. ACIT (2014)

   • Delay of over 1,100 days with vague justification was not condoned.

2. CIT v. Ram Mohan Roy (2012) 

   • Delay caused by internal mismanagement was not treated as valid cause.

3. Motilal Padampat Sugar Mills Co. Ltd. v. CIT (1989)

   • Absence of documentary support led to rejection of condonation plea.

How to File an Appeal – CIT(A)

Appeals to the CIT(A) must be filed online through the e-Filing portal:

• Navigate to: https://www.incometax.gov.in

• Login with PAN credentials

• Go to e-File > Income Tax Forms > File Income Tax Forms

• Select Form 35

• Attach grounds of appeal, statement of facts, assessment order, and proof of fee payment

• Verify with Digital Signature Certificate (DSC) or EVC

Communication Enablement Window – CIT(A)

In 2025, most CIT(A) proceedings are conducted through faceless and digital mode. The Communication Enablement Window provides a secure and centralized platform to:

• Receive and respond to notices from CIT(A)

• Upload additional evidence and clarifications

• Track status of appeal

• Access final orders

This initiative ensures time-bound, transparent, and paperless proceedings.

How to File an Appeal – ITAT

Appeals to the Income Tax Appellate Tribunal (ITAT) must be filed using Form 36, along with supporting documents:

• Download Form 36 from https://itat.gov.in

• Prepare grounds of appeal, statement of facts, and attach CIT(A)'s order, assessment order, and fee challan

• Pay the appeal fee via Challan ITNS 280 (mention "Self-Assessment Tax" under Minor Head)

• Submit three signed sets of the appeal at the jurisdictional ITAT Bench (physical filing)

• Serve a copy of Form 36 and documents to the Respondent Officer (AO/CIT) and attach proof of service

• Receive diary number from ITAT Registry to track listing status

• Appear at the scheduled hearing before the Tribunal or through authorized representative

Best Practices for Successful Appeals

• Ensure all relevant documents (order copy, PAN, computation sheet, etc.) are attached.

• Draft clear grounds of appeal and statement of facts.

• Pay the appropriate appeal fees and retain proof.

• File condonation request with proper evidence if delayed.

• Respond promptly to CIT(A) or ITAT notices via the online portal.

Conclusion

The appeal process under the Income Tax Act is a robust safeguard for taxpayers in India. From CIT(A) to the Supreme Court, each forum serves a specific role in ensuring justice. With the integration of digital platforms like the Communication Enablement Window, and with judicial guidance on delay condonation, the system is becoming more efficient and accessible in 2025. However, adherence to timelines, complete documentation, and legal clarity remain essential.