E-Assessment & E-Appeal Process – Step-by-Step Guide

What Are E-Assessments & E-Appeals?

E-Assessments and E-Appeals are digital, faceless proceedings introduced by the Income Tax Department to make income tax compliance transparent, paperless, and time-bound.

Under this system:

  • All notices, submissions, hearings, and orders are conducted online
  • There is no physical interaction between taxpayer and tax officer
  • Communication happens only through the Income Tax e-Filing Portal

What Is E-Assessment?

E-Assessment (also called Faceless Assessment) is the process where the Income Tax Department examines:

  • Filed Income Tax Return (ITR)
  • Discrepancies in income, deductions, or disclosures
  • Information mismatch with AIS / TDS / third-party data

The entire assessment is handled digitally through notices and responses uploaded online.


What Is E-Appeal?

An E-Appeal is filed when a taxpayer disagrees with an assessment order, penalty order, or rectification order passed by the department.

E-Appeals are filed online before:

  • Commissioner of Income Tax (Appeals)
  • National Faceless Appeal Centre (NFAC)

Benefits of E-Assessments & E-Appeals

  • 100% online & paperless
  • No physical visits or hearings
  • Transparent and traceable communication
  • Reduced litigation bias
  • Faster disposal of cases

When Can You Receive an E-Assessment Notice?

You may receive an e-assessment notice if:

  • Income mismatch with AIS or Form 26AS
  • High-value transactions detected
  • Excess deductions or exemptions claimed
  • Return selected for scrutiny
  • Defective or incomplete ITR filed

Documents Required for E-Assessment & E-Appeal

  • Income Tax Return copy
  • Notice/order received
  • Financial statements
  • Bank statements
  • Investment proofs
  • Agreements, invoices, bills
  • Computation of income
  • Supporting legal explanations

Step-by-Step Process for E-Assessment

Step 1: Receive Notice

  • Notice is received via email & e-filing portal
  • Check section, due date, and response requirement

Step 2: Login to Income Tax Portal

  • Login using PAN
  • Go to e-Proceedings / Pending Actions

Step 3: Download & Review Notice

  • Understand the issue raised
  • Identify documents and explanations required

Step 4: Prepare Response

  • Draft clear explanations
  • Attach supporting documents
  • Ensure consistency with ITR and books

Step 5: Submit Reply Online

  • Upload response before due date
  • Submit through the portal

Step 6: Attend Virtual Hearing (If Required)

  • Some cases require video conferencing
  • Attend through portal link

Step 7: Receive Assessment Order

  • Final order issued electronically
  • Tax demand or relief communicated online

Step-by-Step Process for Filing E-Appeal

Step 1: Review Assessment Order

  • Check grounds of disagreement
  • Calculate disputed tax amount

Step 2: Prepare Appeal Grounds

  • Legal and factual arguments
  • Supporting evidence and case laws

Step 3: Login to Income Tax Portal

  • Select e-File → Income Tax Forms → Form 35

Step 4: Fill Form 35 (E-Appeal)

Enter:

  • Order details
  • Grounds of appeal
  • Statement of facts
  • Relief claimed

Step 5: Upload Supporting Documents

  • Assessment order
  • Computation
  • Evidence documents

Step 6: Submit & Verify Appeal

  • Submit Form 35
  • Verify using EVC or DSC

Step 7: Online Hearing & Order

  • Respond to appeal notices
  • Attend virtual hearings
  • Receive appeal order digitally

Important Time Limits

  • E-Assessment response: As mentioned in notice
  • E-Appeal filing: Within 30 days from receipt of order

Delay may lead to dismissal of appeal.


Common Mistakes to Avoid

  • Missing response deadlines
  • Uploading incomplete documents
  • Contradicting earlier submissions
  • Filing appeal without legal grounds
  • Ignoring portal notifications

Why Choose Saving Mantra for E-Assessments & E-Appeals?

  • Expert handling of scrutiny cases
  • Professionally drafted replies & appeals
  • End-to-end portal management
  • Legal & compliance-oriented approach
  • Notice resolution support

Disclaimer

This blog is for informational purposes only and does not constitute legal or tax advice. Income tax laws and procedures relating to e-assessments and e-appeals are subject to change and depend on individual case facts. Saving Mantra recommends consulting a qualified tax professional before responding to notices or filing appeals.