Manner of Filing of Appeal to CIT(A)

Introduction

An appeal before CIT(A) shall be filed in Form No. 99 along with the applicable fee within 30 days. E-filing of an appeal is mandatory for a person who is liable to file the return of income electronically. The persons for whom e-filing of return is not mandatory can file an appeal either in electronic form or paper form.

1. Procedure to file an appeal

1.1. Form for filing of an appeal

Main article: Faceless Appeal Scheme 2021

The first appeal to the Commissioner (Appeals) shall be filed in Form No. 99 and shall be filed electronically through the e-filing portal.

1.2. How to file an appeal?

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the repeal and saving provision of Section 536(2)(j) that provides that any scheme issued under any provision of the repealed Income-tax Act shall, so far as it is not inconsistent with the corresponding provisions of this Act, be deemed to have been issued under the corresponding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

All Income-tax appeals before the CIT(A) shall be finalised in a faceless manner, except for the appeal relating to the following:

(a) Serious frauds;

(b) Major tax evasion;

(c) Sensitive & search matters; and

(d) International Tax and Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015

1.3. Mode of filing of appeal

1.3-1. If the return is furnished electronically

Where a person is required to furnish a return of income electronically, the appeal is required to be furnished in the following manner:

(a) If the return of income is furnished under a digital signature, an appeal can be filed by furnishing Form No. 99 electronically under a digital signature.

(b) If the return of income is furnished electronically other than under a digital signature, an appeal can be filed by furnishing Form No. 99 electronically through Electronic Verification Code (EVC).

1.3-2. If the return is furnished in paper form

Where a person has an option to furnish a return of income in paper format, he has an option to file an appeal by furnishing Form No. 99 electronically or in paper form.

1.4. Condition for filing of appeal

The CIT(A) shall not admit an appeal filed by an assessee, if:

(a) He has filed the return of income, but the tax due on the returned income has not been paid by him. The CIT(A) has no power to stay the condition of pre-payment of tax due on the returned income; or

(b) He has not filed the return of income, and an amount equal to the amount of advance tax payable by him has not been paid. However, CIT(A) may, for good and sufficient reasons, to be recorded in writing, admit his appeal even if no tax has been paid.

However, if the assessee has presented an appeal before CIT(A), the Assessing Officer may, under Section 411(12) in his discretion, treat the assessee as not being in default in respect of the amount in dispute in the appeal, even though the time for payment has expired, as long as such appeal remains undisposed of.

1.5. Verification of form

Form No. 99 is required to be verified by a person who is authorised to verify the return of income.

1.6.  Documents to be submitted

The memorandum of appeal, statement of facts and the grounds of appeal must be filed in duplicate and should be accompanied by a copy of the order appealed against and the notice of demand in original, if any.

1.7. Fee for filing an appeal

An appeal to be filed with the Commissioner (Appeal) should be accompanied by the challan of payment of a fee as follows:

1.8. Time limit for filing an appeal

1.8-1. If the appeal is related to the order denying the refund of the tax deducted

An assessee can file an application under Section 434 before the Assessing Officer to claim the refund of tax deducted under Section 393 (Table: Sl. No. 17) on the grounds that no tax was required to be deducted on such income. If the assessee is not satisfied with the order passed by the Assessing Officer, he may go into appeal against such order by filing an appeal before the Commissioner (Appeals) within 30 days from the date on which the order under Section 434 is served.

1.8-2. If the appeal relates to the assessment or penalty

Where an appeal is being filed against an order of assessment or penalty, it is required to be filed within 30 days from the date on which the notice of demand relating to such assessment or penalty is served.

1.8-3. If an appeal relating to any other matter

Where the appeal is being filed in any other case, it is required to be filed within 30 days from the date on which the intimation of the order, against which the appeal is sought, is served.

1.9. How to compute the time limit of 30 days?

While computing the limitation period of 30 days, the following periods are excluded:

(a) In view of Section 372, the day on which the aggrieved order is served shall be excluded. Moreover, if the assessee is not furnished with a copy of the order when the notice of the order is served upon him, the time taken to obtain a copy of such order shall be excluded.

(b) Where an assessee has made an application to obtain immunityfrom the following, the period starting from the date on which the application is made to the date on which the order rejecting the application is served on the assessee shall be excluded:

• Levy of penalty under Section 439 for under-reporting of income;

• Prosecution under Section 478 for willful evasion of tax;

• Prosecution under Section 479 for failure to furnish a return of income.

1.10. Condonation of delay

The Commissioner (Appeals) may condone the delay in filing of an appeal after the expiry of the period of 30 days, if he is satisfied that there was sufficient cause for not presenting the appeal within the period of 30 days. An application for condoning the delay, citing the reasons for the delay along with the necessary evidence, should be filed with Form No. 99 at the time of filing the appeal.

References

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

Notification S.O. 5429(E), dated 28-12-2021.

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