Appeals in Income Tax in India
Appeals in Income Tax in India
The tax authorities make use of 'best judgment assessment' and pass orders according to the case. When such powers are used by the authorities, it is likely to generate grievances among the tax payers. In case the tax authority has made some prime facie mistakes, the tax payer could go to the concerned assessing authority for rectification of mistakes. However, the tax authorities sometimes misunderstand the facts or misapply the laws to the fact of the case. In case of such grievances, and in order to create confidence among the tax payers regarding the fair play, credibility and impartiality of the tax administration, Income Tax Laws provide for independent appellate fora.
First Appeal to Commissioner (Appeals)
If an assessee is not satisfied by any judgment passed and the order sent to him by the assessing officer (AO), whether the judgment is in relation to adjustment of tax or interest, then the assessee can file an appeal against the judgment of AO to the Commissioner (Appeals). The processing fee for filling an appeal before the Commissioner (Appeals) is as follows:
Rs. 250/-, where the assessed total income is Rs. 1 lakh or less;
Rs. 500/-, where the assessed total income is over Rs. 1 lakh but less than Rs. 2 lakhs;
Rs. 1,000/-, where the assessed total income is over Rs. 2 lakh;
Rs. 500/-, for appeals involving any other matter.
The appeal needs to be filed within 30 days from the date of receipt of the order by the AO. In genuine cases, where delay is for good reason, the Commissioner (Appeals) can excuse the delay. The appeal needs to be filed in Form 35 duly signed by the assessee. The reason for appeal and the statement of facts relating to the case must also be filed along with the memorandum of appeal.
The appeal will be heard only if the assessee has paid his due taxes at the time of filing the appeal. The Commissioner (Appeals) will make a reasoned order in writing, after he has given opportunity for hearing to both the appellant as well as the AO. The Commissioner (Appeals) will, if possible, hear and decide the appeal within 1 year from the end of financial year in which appeal was filed.
Second Appeal to Appellate Tribunal
In case the assessee or the AO is not satisfied with the order passed by the Commissioner (Appeals), the assessee/AO can further file an appeal with the Appellate Tribunal. In case of assessee, the second appeal is to be made in Form 36. The processing fee for filling an appeal before the Appellate Tribunal is as follows:
Rs. 500/-, where the assessed total income is Rs. 1 lakh or less;
Rs. 1500/-; where the assessed total income is over Rs. 1 lakh, but less than Rs. 2 lakhs;
1% of the assessed income, subject to a maximum of Rs. 10,000/-, where the assessed total income is more than Rs. 2 lakhs.
Rs. 500/-, for appeals involving any other matter.
The appeal should be filed within 60 days from the date of receipt of order by the Commissioner (Appeals). The memorandum of appeal should be accompanied by the grounds of appeal. The statement of facts, paperwork containing the relevant orders and statements, and all the related documents that could be required at the time of hearing of appeal, must also be sent with the appeal memorandum.
In case the appeal to Appellate Tribunal is filed by AO, the assessee may file a cross objection in Form 36A within 30 days from the date of the receipt of notice of appeal. The Appellate Tribunal will, if possible, hear and decide the appeal within 4 years from the end of financial year in which appeal was filed.
Yash Saxena have written many articles on Income Tax In India, Tax System in India & all related to tax in India and here, helps you with the information in Various Saving Schemes in India. You can find more information online on Types of Tax in India and various Laws in India.
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