What Is Income Tax Appeal?
An Income Tax Appeal is a legal remedy available to a taxpayer who is not satisfied with an order passed by the Assessing Officer (AO), such as:
- Assessment order
- Penalty order
- Rectification order
- Demand order
Appeals are filed online before the Income Tax Department through the faceless e-appeal system, ensuring transparency and paperless compliance.
Who Can File an Income Tax Appeal?
An income tax appeal can be filed by:
- Individuals
- Companies
- LLPs
- Partnership firms
- Trusts & NGOs
- Co-operative societies
If the taxpayer believes that the order is incorrect, excessive, or unjustified, an appeal may be filed.
When Can an Income Tax Appeal Be Filed?
You can file an appeal against:
- Addition of income
- Disallowance of deductions
- Excess tax demand
- Penalty imposed
- Incorrect assessment
⚠️ Appeal must be filed within 30 days from the date of receipt of the order.
Applicable Form for Income Tax Appeal
- Form 35 is used for filing income tax appeals online
Form 35 is mandatory for appeals before:
- Commissioner of Income Tax (Appeals)
- National Faceless Appeal Centre (NFAC)
Documents Required for Filing Income Tax Appeal
- Copy of assessment / penalty order
- Notice of demand
- Income Tax Return (ITR)
- Computation of income
- Challan details (tax paid)
- Supporting documents & evidence
- Statement of facts and grounds of appeal
Step-by-Step Process for Filing Income Tax Appeal (Form 35)
Step 1: Review the Order Carefully
- Identify disputed additions or penalties
- Note the order date and appeal deadline
- Calculate disputed tax amount
Step 2: Prepare Grounds of Appeal
- Draft clear legal and factual grounds
- Avoid vague or general statements
- Grounds should directly address issues raised
Step 3: Login to Income Tax Portal
- Login using PAN credentials
- Go to e-File → Income Tax Forms → File Income Tax Forms
Step 4: Select Form 35
- Choose Form 35 – Appeal to Commissioner (Appeals)
- Select the relevant assessment year
Step 5: Fill Appeal Details
Enter:
- Order details
- Section under which order passed
- Disputed tax and relief claimed
- Grounds of appeal
- Statement of facts
Step 6: Upload Supporting Documents
- Assessment order
- Computation
- Evidence and explanations
Ensure documents are clear and relevant.
Step 7: Pay Appeal Fees
- Pay prescribed appeal fee (based on income)
- Enter challan details in Form 35
Step 8: Submit & Verify Appeal
- Submit Form 35
- Verify using:
- Aadhaar OTP
- Net banking
- DSC (where applicable)
⚠️ Appeal is invalid without verification.
Step 9: Respond to Appeal Notices
- Reply to notices issued by NFAC
- Attend virtual hearings if scheduled
- Submit additional clarifications when required
Step 10: Receive Appeal Order
- Appeal order is issued online
- Relief, confirmation, or modification of demand communicated digitally
Important Time Limits
- Appeal filing: Within 30 days of order receipt
- Response to notices: As mentioned in portal notice
Delay may lead to dismissal of appeal unless condoned.
Common Mistakes to Avoid
- Missing appeal deadline
- Weak or generic grounds of appeal
- Non-submission of supporting documents
- Ignoring portal notices
- Filing appeal without tax computation
Benefits of Filing Income Tax Appeal
- Opportunity to correct unjust additions
- Reduction or deletion of tax demand
- Fair hearing under faceless system
- Protection from coercive recovery
- Legal remedy against errors
Why Choose Saving Mantra for Income Tax Appeals?
- Expert drafting of grounds & statements
- End-to-end Form 35 filing
- Representation before appellate authorities
- Notice & hearing management
- Strong legal and compliance approach
Disclaimer
This blog is for informational purposes only and does not constitute legal or tax advice. Income tax appeal procedures and timelines are governed by the Income Tax Act, 1961, and are subject to change. Outcomes depend on case-specific facts and legal interpretation. Saving Mantra recommends consulting a qualified tax professional before filing an income tax appeal.