How To File An Appeal With CIT (A)

CIT (A) or Commissioner of Income-tax (Appeals) is the first appellate authority in which any aggrieved party may file an appeal against the order of Assessing Officer. In this article, we will understand all about CIT (A).

appeal with CIT (A)

Section 246A: Orders against which a person may file an appeal

A person may file an appeal to CIT (A) against the following orders:

  • Assessment orders passed under section 143(3) or 147 or 153A except where the assessing officer has passed the orders on the directions of DRP because in these cases, the appeal can be directly filed to ITAT.
  • Rectification order under section 154 or 155
  • Order under section 163 treating the assessee as the agent of a Non- resident
  • Order under section 171(I.e. Order of the assessing officer refusing to make partition of HUF)
  • The order imposing the penalty made by the assessing officer.
  • Order under section 201 or 206C (Order imposing the penalty on the assessee due to failure to deduct the TDS or TCS)

An Appeal can also be made to the CIT (A) by the assessee against the intimation under section 143(1) or 200A(1) or 206CB.

Section 248: Appeal by the person who is denying the liability to deduct TDS

Where under an agreement, TDS under section 195 on any income is borne by the person by whom income is payable and such person has paid tax to the government, claims that no tax was required to be deducted on such income, he may appeal to the CIT (A) for a declaration that no tax was deductible on such income.

Section 249: Period of Limitation 

The appeal shall be required to furnish within 30 days of the following dates:

  • Where the appeal is under section 248, the date of payment of tax.
  • Where the appeal relates to any assessment or penalty, the date of service of notice of demand relating to the assessment or penalty.
  • In any other case, the date on which the order sought to be appealed is served.

No appeal shall be admitted unless at the time of filing of return.

  • Where a return has been furnished by the assessee, the assessee has paid the tax due on income returned by him
  • Where no return has been furnished, the assessee has paid tax assessed by assessing officer in the best judgment assessment. CIT (A) may exempt any assessee for the payment condition payment.

Note: As per section 268, while computing the period of limitation for filing of the appeal, the date on which order has complained, shall be excluded.

Also, if notice of demand is served and the copy of the order of the assessing officer has not been served to the assessee, then the time taken for obtaining the copy of the order shall be excluded from the period of limitation of filing of an appeal.

Stay of demand

Following Authority have the powers to grant the stay of demand:

  • Assessing officer: He can grant the stay of demand until the disposal of appeal by the commissioner of income tax (Appeals).
  • CIT (A): If the AO has not granted the stay of demand then CIT (A) can also grant the stay of demand until he passes the order under section 250.
  • ITAT: Income Tax Appellate Tribunal shall grant the stay of demand for 180 days from the 1st date of the stay order. ITAT will have to pass the stay order within 180 days from the date of stay of order which can be further extended to 180 days.

Note: Stay of demand order means an order pass by the authority stated that there is no need to pay any amount of demand till the disposal of the case for which appeal has been filed.

Note: High court and the Supreme Court does not have the power to stay on the demand.

Admission of Additional Evidence

As per Rule 46A, Commissioner of income tax (Appeals) cannot entertain the admission of additional evidence produced before them except in the following cases:

  • Where Assessing officer has refused to admit the evidence which ought to have been admitted; or
  • Where the appellant was prevented by sufficient cause from producing the evidence which he was called upon to produce by the assessing officer;
  • Where the appellant was prevented by the sufficient cause from producing before assessing officer any evidence which is relevant to any grounds of appeal; or
  • Where the assessing officer has passed the order without giving sufficient opportunity to the appellant to produce evidence which would be relevant to any grounds of appeal.

CIT (A) shall not admit any additional evidence unless it records those reasons in writing and giving a reasonable opportunity to assessing the officer to examine the evidence and cross-examine the witness produced by the appellant.

ITR filing

Documents required for filing of an appeal

Following are the documents required in duplicate for filing an appeal to the commissioner of income tax (Appeal):

  • Form No. 35 (As prescribed in the income tax rules)
  • Memorandum of Appeal
  • Statement of facts
  • Grounds of appeal
  • Copy of order appealed against
  • Notice of demand, in original, if any
  • Copy of challan for the prescribed fee

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