A person may face the notice from the department of income tax for various reasons. For example: where a person has filed his return of income within the due date, showing his all the income as per the provisions of the income tax act, 1961. To verify the correctness of the amount in his ITR, his assessing officer may issue the notice under section 143(2).
Even, if you have not filed the return then also, subject to the provisions of the act, assessing officer may compute your total income and tax liability as per his best of judgment.
If you also have faced the same situation and assessing officer has passed the order of demand and you are not agreed with the demand then you can file an appeal to the commissioner of income tax (Appeal). However, it is very important to file the appeal within the time limit as specified under the income tax act. In this article, we will explain these time limits, the form used for filing of the appeal and other details.
The time limit for filing of an appeal
The assessee can file the appeal within the period of 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.
Although, the period of 30 days can be extended if there is a sufficient cause of delay.
Note: As per section 268, while computing the period of limitation for filing of the appeal, the date on which order 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.
Also, any officer of the department has the right to file the appeal to CIT (A)
Documents required for filing of the 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
The amount required to be deposited at the time of filing of an appeal
If the total income of the assessee as computed by the assessing officer is up to Rs.1 Lakhs the deposit amount is Rs.250
If the total income of the assessee as computed by the assessing officer is more than Rs.1 Lakhs but up to Rs.2 Lakhs, the deposit amount is Rs.500
If the total income of the assessee as computed by the assessing officer is more than Rs.2 Lakhs the deposit amount is Rs.1000.
Tax Payable for filing of an appeal to CIT (A)
Where the assessee has filed his return of income then, before the filing of the appeal, he has to pay the amount of tax as shown in his return of income.
Where he has not filed the return of income and the total income and tax payable has been computed by the assessing officer under section 144 or 147, then before the filing of the appeal, he has to pay the amount of tax as computed under this section.
Although, where the assessee has not filed his return, then CIT (A) may condone for depositing the amount of tax as computed by the assessing officer.