How Can A Person File Tax Appeals In India?

Appeal is a proceeding resorted to rectify an erroneous decision of a court by submitting the question to a higher court, or court of appeal. It means ‘making a request’ and in legal parlance, it means ‘apply to a higher court for a reversal of the decision of a lower court.

Income tax liability is primarily determined at the level of Assessing Officer. Where the Income Tax department (the government) disagrees with the tax computed by the taxpayer, they can levy an additional tax. Where a taxpayer is aggrieved certain action of Assessing Officer, he can move an appeal.

Where the Constitutional validity of the provisions of an Act or Rule is under challenge, or

  • Where Board’s order, Notification, Instruction or Circular has been held to be illegal or ultra vires, or
  • Where Revenue Audit’s objection in the case has been accepted by the Department.
  • Writ matters
  • Matters pertaining to other direct taxes, i.e., other than Income-Tax
  • Where the tax effect is not quantifiable or not involved, such as case of registration of trust or institution under section 12A.
  • Where the addition relates to undisclosed foreign assets/bank accounts.

PROCEDURE FOR APPEAL:

An appeal to ITAT must be in Form No. 36- in triplicate. The prescribed fees for any such appeal is as under:

  • 500, where the assessed income is Rs 1lakh or less
  • 1,500, where assessed income is more than Rs. 1 lakh but less than Rs. 2 lakhs
  • 1% of assessed income, subject to maximum of Rs.10, 000, where assessed income is more than Rs. 2 lakhs.

WHEN CAN BE FILED:

An appeal before ITAT can be filed by a taxpayer against;

  • an order passed by the Commissioner of Income-tax (Exemption), u/s 10 (23C)(vi), which provides for filing of application by the educational institute or hospital for the purpose of grant or exemption;
  • an order passed by the Principal Commissioner of Income-tax or Commissioner of Income-tax with respect to registration application made by a charitable or religious trust as provided u/s 12AA
  • an order passed by the Principal Commissioner of Income-tax or Commissioner of Income-tax with respect to the approval of a charitable trust for donations made to it which would be eligible for deductions in the hands of the donor, as provided u/s 20G(5)(vi)

ORDER OF ITAT:

The Appellate Bench comprises of one judicial member and one accountant member. Appeals where total income computed by the Assessing Officer does not exceed Rs.5 lakh may be disposed of by single member Bench.

APPEALS BEFORE HIGH COURT:

Where the High Court is satisfied that the case involves substantial question of law, an appeal shall lie against the order/ judgment of ITAT. Such appeal may be filed either by the taxpayer or the Chief Commissioner/Commissioner.

APPEALS BEFORE SUPREME COURT:

Appeal against an order of High Court in respect of Appellate Tribunal’s order lies with the Supreme Court. Appeal lies only against cases, which are certified to be fit one for appeal to the Supreme Court. Special leave can also be granted by the Supreme Court under Article 136 of the constitution of India against the order of the High Court.

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