Tag: CIT(A)

When an assessment or penalty order adds to your income and you disagree, the first remedy is an appeal to the Commissioner of Income-tax (Appeals), commonly called the CIT(A). For orders under the Income-tax Act, 1961, the CIT appeal Form 35 is filed online, with a statement of facts and grounds of appeal. A carefully framed appeal, filed within time, is often the most effective step in resolving a dispute.

The Income-tax Act, 2025 has introduced a new form number for first appeals, and the Finance Act, 2026 has adjusted some related rules. This guide covers the essentials: which orders can be appealed, time limits, fees, drafting grounds and managing the demand while the appeal is pending.

Key takeaways

• A first appeal lies to the CIT(A) or, in certain cases, the Joint Commissioner (Appeals), against orders listed in section 246A of the 1961 Act.
• The appeal must be filed within 30 days of service of the notice of demand or the order, with condonation possible for sufficient cause.
• Tax on the returned income must be paid before the appeal can be admitted.
• Fees are ₹250, ₹500 or ₹1,000 depending on assessed income.
• Under the Income-tax Act, 2025, the equivalent first appeal is filed in Form 99; the e-filing portal shows the form applicable to your order.

Which orders can be appealed

Common appealable orders include:

• Assessment orders under section 143(3) or 144, and reassessment orders under section 147.
• Intimations under section 143(1) where an adjustment has been made.
• Penalty orders, including under section 270A.
• Orders levying fees or interest in certain cases, and orders under section 154 that enhance liability or reduce a refund.
• Orders treating a person as an assessee in default for TDS.

If the issue is a simple mistake apparent from the record, a rectification under section 154 may be quicker. Where the intimation itself is the problem, see our guide on the section 143(1) intimation.

Time limit and fees for a CIT appeal in Form 35

Item	Position
Time limit	30 days from service of the notice of demand (or the order, where no demand)
Late appeal	Can be admitted if there was sufficient cause; explain the delay with evidence
Pre-condition	Tax due on returned income paid; if no return, advance tax payable paid (with exemption possible for good reason)
Fee: assessed income up to ₹1 lakh	₹250
Fee: assessed income above ₹1 lakh up to ₹2 lakh	₹500
Fee: assessed income above ₹2 lakh	₹1,000
Fee: other matters	₹250

The fee is paid through the income-tax challan before filing, and the challan details are entered in the form.

Drafting good grounds of appeal

Grounds are the heart of the appeal. They should be concise, issue-wise and free of argument.

Structure that works

1. General ground that the order is contrary to law and facts (keep it short).
2. Specific grounds, one for each addition or disallowance, stating the amount and why it is wrong.
3. Procedural grounds, such as denial of a hearing or invalid notice, where relevant.
4. Interest and penalty grounds, noting that consequential interest and initiation of penalty are also disputed.
5. A reservation to add, alter or withdraw grounds.

Example

Suppose an order added ₹14 lakh as unexplained cash credit under section 68 and disallowed ₹2.2 lakh of interest. Good grounds would read:

• ‘The learned AO erred in adding ₹14,00,000 under section 68 despite confirmations, bank statements and ITRs of the lenders being filed, thereby establishing identity, creditworthiness and genuineness.’
• ‘The learned AO erred in disallowing interest of ₹2,20,000 without appreciating that the loans were used for the business.’

Statement of facts

The statement of facts tells the story: the business, the return, what happened in assessment and what was submitted. Keep it factual and chronological. Detailed legal arguments are better placed in written submissions later.

Filing the appeal online

1. Log in to the e-filing portal and open e-File > Income Tax Forms > Form 35 (or the form shown for your order).
2. Select the assessment year and the order being appealed; details are pre-filled where available.
3. Enter the date of service of the order and demand, the disputed amount and the fee challan.
4. Upload the statement of facts, grounds of appeal and supporting documents.
5. Verify with an electronic verification code or digital signature.

Most appeals are now heard under the faceless appeal scheme, with notices and submissions exchanged online and personal hearings through video conferencing on request.

Managing the demand during the appeal

Filing an appeal does not automatically stop recovery. To avoid coercive action:

• Request a stay from the Assessing Officer, explaining the grounds and the prima facie strength of the appeal.
• Administrative guidelines have generally allowed a stay on payment of a percentage of the disputed demand, historically 20%. Budget 2026 proposed a lower 10% payment for appeals under the new law, so check the current instruction for your case.
• Where hardship is significant or the addition is clearly unsustainable, ask for a lower payment with reasons.
• Track the demand on the portal and respond to any outstanding demand intimation promptly.

After filing: preparing for the hearing

• Prepare a paper book with all documents already on record before the AO, indexed and paginated.
• If new evidence is required, request admission under rule 46A, explaining why it could not be filed earlier.
• File written submissions issue by issue, linking each to evidence.
• Keep the appeal active; respond to every notice from the appellate unit on time.

If the CIT(A) order is not fully favourable, the next step is an appeal to the Tribunal, explained in our guide to ITAT appeals.

Frequently asked questions

What is the time limit to file Form 35?

The appeal must be filed within 30 days of service of the notice of demand, or of the order where there is no demand. Delay can be condoned if you show sufficient cause.

What is the fee for filing an appeal before CIT(A)?

It is ₹250 where assessed income is up to ₹1 lakh, ₹500 where it is above ₹1 lakh up to ₹2 lakh, and ₹1,000 where it exceeds ₹2 lakh. Other matters attract ₹250.

Can I add grounds after filing Form 35?

Yes. Additional grounds can be raised before the appeal is decided, especially where they arise from the record, although the appellate authority decides whether to admit them.

Does filing an appeal stop recovery of the demand?

No. A separate stay request is needed. Paying a portion of the disputed demand, as per current guidelines, usually supports the request.

This article is general information based on the law as of September 2026, and is not legal or tax advice. Please check the facts of your own case with a professional before acting.