Appeal before Joint Commissioner (Appeals) [JCIT(A)]

Introduction

Joint CIT(A) and CIT(A) are the first appellate authorities under the Income-tax Act. The taxpayer aggrieved by an assessment order, or order imposing penalty or any other order, can file an appeal before the Joint CIT(A) or CIT(A) having jurisdiction over him. The appeal before the Joint CIT(A) can be filed against the order of the Assessing Officer (below the rank of Joint Commissioner). Whereas, the appeal before the CIT(A) can be filed against the order of any assessing officer, irrespective of his rank.  The appeal has to be filed electronically in Form 99. However, if the aggrieved party is not required to file a return of income electronically, the appeal can be filed either electronically or in paper format.

1. Orders against which an appeal can be filed before the JCIT(A)

See Also: Appeal before Commissioner (Appeals)

Any assessee aggrieved by the orders passed by an Assessing Officer (below the rank of Joint Commissioner) can prefer an appeal against such order before the Joint Commissioner of Income Tax (Appeals) [‘JCIT(A)’]. However, not all orders passed by an AO can be challenged by the assessee before JCIT(A). Only specified orders (appealable orders) can be challenged before JCIT(A). Further, no appeal shall be filed before the JCIT(A) if an appealable order is passed by or with the prior approval of an income-tax authority above the rank of Deputy Commissioner.

1.1. Appeal against assessment orders

An assessee can prefer an appeal with the JCIT(A) against the following orders relating to the assessment:

(a) An intimation issued under Section 270(1) where the assessee objects to the making of an adjustment.

(b) Any order of assessment passed under Section 270(10) or best judgment assessment order passed under Section 271, where:

• The assessee objects to the amount of income assessed,

• The amount of tax determined,

• The amount of loss computed, or

• Status under which he is assessed, i.e., individual, HUF and so on.

(c) An order of assessment, reassessment or recomputation under Section 279.

1.2. Appeal against orders relating to TDS/TCS matters

The aggrieved person can prefer an appeal with the JCIT(A) against the following orders relating to TDS/TCS matters:

(a) An intimation order under Section 399(1) on processing of TDS or TCS statement, where the deductor or collector objects to the making of an adjustment.

(b) An order under Section 398 treating a deductor as an assessee in default.

1.3. Appeal against penalty orders

The aggrieved person can prefer an appeal with the JCIT(A) against an order imposing a penalty under Chapter XXI.

1.4. Appeal against rectification orders

The aggrieved person can prefer an appeal with the JCIT(A) against a rectification under Section 287 or Section 288 amending any of the orders mentioned above.

2. Orders against which an appeal cannot be filed before the JCIT(A)

An appeal cannot be filed before or transferred to JCIT(A) against the following orders. Thus, the appeal against these orders will remain with or be filed with the CIT (Appeals):

2.1. Appeal against the orders of higher rank officer

An assessee cannot prefer an appeal with the JCIT(A) against an order passed by or pertaining to the jurisdiction of a higher rank officer:

(a) An order passed by AO above the rank of JCIT.

(b) An order passed with the prior approval of an income-tax authority above the rank of Deputy Commissioner.

(c) Cases pertaining to the jurisdiction of the Commissioner of Income-tax (Central) or Commissioner of Income-tax (International Tax).

2.2. Appeal against assessment orders

An assessee cannot prefer an appeal with the JCIT(A) against the following orders relating to the assessment

(a) Assessment orders passed under the faceless regime

(b) Assessment orders passed under Section 270(10) or Section 271 having a disputed demand of more than Rs. 10 lakhs.

(c) Assessments completed in pursuance of a search under 247, a requisition under 248, or a survey under Section 253. However, an order made under Section 398 in furtherance of any action under Section 253 shall not be considered an assessment order for this exception; hence, the appeal shall be decided by the Joint Commissioner (Appeals) for such order

(d) Assessments where an addition or variation in income is made based on seized or impounded material.

(e) An order of reassessment or recomputation under Section 283.

(f) An order made for modifying the total income determined under assessment or reassessment in accordance with the advance pricing agreement as referred to in Section 169.

(g) Assessment order passed on invocation of GAAR.

(h) An order passed against the assessee where the assessee denied his liability to be assessed under the Act.

2.2-1. Meaning of ‘disputed demand’

“Disputed Demand” in respect of the assessment order will be computed in the following manner:

(a) Where a return has been filed, the disputed demand means the difference between the tax on the total income assessed and the tax on the returned income;

(b) Where no return has been filed, the disputed demand means the tax on the total income assessed.

(c) In any other case, the disputed demand means the demand raised vide notice under Section 289 or the intimation issued under Section 270(1) or Section 399.

It shall also include applicable interest, surcharge and cess.

2.3. Appeal against penalty orders

An assessee cannot prefer an appeal with the JCIT(A) against the following penalty orders

(a) Penalty orders passed under the faceless regime

(b) Penalty order passed with respect to assessment under Section 270(10) or Section 271 having a disputed demand of more than Rs. 10 lakhs.

(c) Penalty order in pursuance of a search under 247, a requisition under 248, or a survey under Section 253.

(d) Penalty order where an addition or variation in income is made based on seized or impounded material.

2.3-1. Meaning of ‘disputed demand’

“Disputed Demand” in respect of the penalty order will be the amount of penalty imposed under Chapter XXI.

2.4. Appeal against other orders

(a) An order passed by the AO under Section 434 rejecting the application for refund of tax deducted under Section 393 (Table: Sl. No. 17) on the grounds that the deductor has no liability to deduct tax.

(b) An order passed under Section 306 for the purpose of treating the assessee as the agent of a non-resident.

(c) An order passed under Section 313(2) or Section 313(4) to recover tax of predecessor from successor other than on death.

(d) An order passed under Section 315 regarding assessment after the partition of HUF.

(e) An order passed by the Joint Commissioner under Section 231 refusing to approve the option for a tonnage tax scheme.

(f) An order passed under Section 431 in respect of a refund.

(g) Where an application to the Dispute Resolution Committee (DRC) has not been allowed to proceed.

(h) An order passed by an assessing officer, other than a Deputy Commissioner, under the provisions of the Income-tax Act in case of a person or class of persons having regard to the nature of the case or complexities involved and other relevant considerations as may be directed by the Board.

3. Transfer of pending appeal from CIT (Appeals) to JCIT(A)

A pending appeal can be transferred from CIT (Appeals) to JCIT(A), if:

(a) The appeal has been filed before the CIT(Appeals) against an order that is also appealable before the JCIT(A).

(b) Such an appeal before the CIT (Appeals) should be pending.

(c) The Board (or an income-tax authority so authorised) transfers such an appeal to JCIT(A). The Board (or an income-tax authority so authorised) can also transfer any other matter arising out of or connected with such pending appeal.

(d) Before transferring the pending appeals from CIT (Appeals) to JCIT(A), the appellant shall be given an opportunity of being reheard.

(e) On transfer of appeal, the JCIT(A) may proceed with such an appeal or matter from the stage it was before such transfer.

4. Transfer of pending appeal from JCIT(A) to CIT (Appeals)

The pending appeals can be transferred from JCIT(A) to CIT (Appeals) if:

(a) The appeal is pending before JCIT(A) on an appealable order;

(b) The Board (or an income-tax authority so authorised) may transfer such an appeal to CIT (Appeals). The Board can also transfer any other matter arising out of or connected with such pending appeal, and the CIT (Appeals) may proceed with such an appeal or matter from the stage it was before such transfer.

(c) It should be noted that before transferring the pending appeals from JCIT(A) to CIT (Appeals), the appellant will be given an opportunity of being reheard.

5. Process in disposal of an appeal before JCIT(A)

5.1. Form and time limit for filing an appeal before JCIT(A)?

Main article: Manner of filing of appeal to JCIT(A)

The assessee can prefer the first appeal before JCIT(A) in Form No. 99 within 30 days. The appeal shall be filed electronically through the e-filing portal.

5.2. How to file an appeal before JCIT(A)?

See also:e-Appeal Scheme, 2023

Section 356(5) empowers the Central government to make a scheme for the disposal of appeal expediently with transparency and accountability, by eliminating the interface between the JCIT(Appeals) and the appellant, to the extent technologically feasible and direct that any of the provisions of this Act relating to jurisdiction and procedure for disposal of such appeals, shall not apply or shall apply with exceptions, modifications and adaptations.

Similarly, Section 532 empowers the Central government to make a scheme for any purpose of the Act so as to impart greater efficiency, transparency and accountability by:

(a) Eliminating the interface with the assessee or any other person to the extent technologically feasible.

(b) Optimising utilisation of the resources through economies of scale and functional specialisation.

This provision also provides that where a scheme has been notified under the Income-tax Act 1961, the Central Government may amend or modify the said scheme. This indicates that the schemes notified under the ITA 1961 will continue to apply, which is also in line with the repeal and saving provision of Section 536(2)(j) that provides that any scheme issued under any provision of the repealed Income-tax Act shall, so far as it is not inconsistent with the corresponding provisions of this Act, be deemed to have been issued under the corresponding provision of this Act and shall continue in force accordingly.

Under the ITA 1961, the CBDT has notified

5.3. Procedure to be followed by JCIT(A)

5.3-1. Issue of notice

The JCIT(A) shall fix a day and place for the hearing of the appeal and shall issue a notice mentioning the same to the assessee or to the assessing officer, against whose order the appeal has been filed.

5.3-2. Adjournment of hearing

The JCIT(A) has the power to adjourn the appeal from time to time.

5.3-3. Conduct of enquiry

Before disposing of any appeal, JCIT(A) may conduct such an enquiry as he thinks fit. He may also direct the assessing officer to make further enquiries and report the results of such enquiries to the JCIT(A).

5.3-4. Additional grounds of appeal

The JCIT(A) may admit the additional grounds of appeal which were not included in the grounds of appeal filed at the time of filing the appeal, if he is satisfied that the omission of such a ground from the grounds of appeal was not willful or unreasonable.

5.3-5. Order of Appeal

The JCIT(A) is required to pass the order of appeal in writing specifying the point of determination, the decision made based on these and the reasons behind such a decision.

5.3-6. Time Limit for passing of the order

The JCIT(A) may, if it is possible, hear and decide the appeal within 1 year from the end of the financial year in which the appeal was filed. Further, the appellate order shall be issued within 15 days of the last hearing.

5.3-7. Disposal of appeals on priority

The CBDT has issued guidelines

(a) Cases having demand above Rs. 1 Crore,

(b) Cases where a VIP/PMO reference is received for expeditious disposal,

(c) Cases where directions to this effect have been issued by the Court,

(d) Cases where the request is made by senior citizens and/or super senior citizens, or

(e) Any other case of genuine hardship.

The request for such a disposal appeal can be raised by the appellant or referred to by the Assessing Officer. The process for handling these requests involves recommendations from the jurisdictional Principal CIT, Principal CIT (Central), or CIT(IT), with the final decision resting with the Principal CCITs, CCITs or DGITs.

5.3-8. Communication of Order

The order of the JCIT(A) disposing of the appeal shall be in writing and shall state the points for determination, the decision thereon and the reason for the decision. On the disposal of the appeal, the JCIT(A) shall communicate the order passed by him to the assessee and to the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner.

5.3-9. Stay of demand

Where an appeal is filed before the JCIT(A), the assessing officer can grant a stay of demand till the disposal of the appeal by the JCIT(A) if the assessee makes payment of 20% of the disputed demand

5.4. Right to be heard

The assessee and assessing officer shall have the right to be heard at the time of hearing of appeal before JCIT(A), either in person or through an authorised representative.

5.5. Filing of additional evidence

The appellant shall not be entitled to produce before the JCIT(A) any evidence, whether oral or documentary, other than the evidence produced by him during the course of proceedings before the Assessing Officer. However, in the following circumstances, the assessee can submit additional evidence before the JCIT(A):

(a) Where the assessing officer has refused to admit the evidence, which ought to have been admitted;

(b) Where the assessing officer called the assessee to produce the evidence, but the assessee was prevented by sufficient cause from producing such evidence;

(c) Where the assessee was prevented by sufficient cause from producing evidence which was relevant to any ground of the appeal; or

(d) Where the assessing officer has passed the order without providing the assessee sufficient opportunity to produce evidence relevant to any ground of appeal.

The JCIT(A) is required to record the reasons in writing for admitting any additional evidence. Further, before admitting any additional evidence, the JCIT(A) is required to provide an opportunity to the assessing officer:

(a) To examine the evidence or document produced by the assessee or to cross-examine the witness produced by the assessee; or

(b) To produce any evidence, document or witness in reply to the evidence produced by the assessee.

5.6. Appeal against the order of JCIT(A)

An appeal to the Income-tax Appellate Tribunal (ITAT) can be filed both by the assessee and the Commissioner (and the Principal Commissioner). The Commissioner may, if he objects to any order passed by the JCIT(A), direct the assessing Officer to file an appeal to the Appellate Tribunal against such order. However, such direction shall be given only in those cases where the tax effect exceeds the specified amount.

6. Powers of JCIT(A)

The JCIT(A) can exercise the following powers while disposing of an appeal filed before him. However, he is required to provide an opportunity to the assessee to show cause before enhancing an assessment, imposing a penalty, or reducing the amount of refund.

6.1. Relating to the assessment order

The JCIT(A) may confirm, reduce, enhance or annul the assessment. In an appeal filed before the JCIT(A) against an order of assessment, the JCIT(A) may not set aside the assessment or refer the case back to the Assessing Officer for making a fresh assessment.

6.2. Relating to the penalty order

Where an appeal has been filed against an order imposing a penalty, the JCIT(A) may confirm or cancel such order or change it either to increase or reduce the penalty.

6.3. Relating to other matters

Where an appeal has been filed in any other case, the JCIT(A) may pass such an order as he thinks fit.

6.4. Power to levy a penalty

The JCIT(A) can levy a penalty under the following provisions:

(a) Penalty under Section 439 for under-reporting and misreporting of income;

(b) Penalty under Section 441 on failure to keep, maintain or retain books of account;

(c) Penalty under Section 443 in case of undisclosed income;

(d) Penalty under Section 444 for false entry or omission of entry;

(e) Penalty under Section 463 for furnishing incorrect information in reports or certificates.

6.5. Power to consider additional matters

While disposing of the appeal, the JCIT(A) has the power to consider and decide any matter arising out of the proceedings in which the order appealed against was passed, irrespective of the fact that such matter was not raised by the appellant before him.

6.6. Power to admit additional evidences

The JCIT(A) can allow the appellant to submit additional evidence in the circumstances mentioned above. In such a situation, the following power of the JCIT(A) shall remain unaffected due to the provision regarding submission of additional evidence:

(a) To direct the production of any document or examination of any witness for enabling him to dispose of the appeal; or

(b) To enhance, confirm, reduce or annul the assessment or penalty order either on its own or on request of the assessing officer.

6.7. Power to reject books of account

JCIT(A) has the power to reject the assessee’s books of account, which have been accepted by the Assessing Officer

7. Alternative to Appeals

Instead of approaching the JCIT(A), the assessee can also approach the Dispute Resolution Committee (DRC). However, the assessee cannot approach them simultaneously. If he approaches the DRC and his application is admitted, he has to submit proof of withdrawal of the appeal filed before JCIT(A) or convey that no proceedings are pending in his case. Similarly, the assessee shall not be eligible to file an appeal before JCIT (A) against the modified order passed by the AO to give effect to the order of resolution of the DRC.

A comparison of all provisions relating to these dispute resolutions has been enumerated in the table below:

References

Order F. No. 370149/97/2023-TPL, dated 16-06-2023

e-Assessment Scheme, 2019, Faceless Assessment Scheme, 2019 or Section 144B

Order F. No. 225/17/2025-ITA-II, dated 28-01-2025

Order F. No. 370149/97/2023-TPL, dated 16-06-2023

Faceless Penalty Scheme, 2021

Notification S.O. 2352(E), dated 29-05-2023

Office Letter F.No. 279/Misc./M-102/2021-ITJ, dated 07-03-2024

Office Memorandum No. 404/72/93-ITCC dated 29-2-2016 and 31-07-2017, as applicable for stay of demand by CIT(A) should also be applicable for stay of demand by JCIT(A).

CIT v. McMillan & Co. [1958] 33 ITR 182 (SC). The principle laid down by Hon’ble Supreme Court should be applicable to JCIT(A) also.

This article is general information and not tax advice. Provisions change. Confirm your position with a qualified professional before acting.