Income Tax Appeal Before CIT(A): Time Limit and Process

If you disagree with an assessment order, such as an addition to your income, a disallowed deduction, a penalty or a wrong interest charge, the law gives you a right to appeal. The first appeal goes to the Commissioner of Income-tax (Appeals), the CIT(A), or, in smaller cases, to the Joint Commissioner (Appeals). The process is fully online and faceless, and the time limit is short, so it pays to act quickly.

Which law applies to your appeal?

Orders for AY 2026-27 and earlier years are passed under the Income-tax Act, 1961, and appeals against them follow the 1961 Act procedure: section 246A, Form 35 and rule 45. Commentators report that under the Income-tax Act, 2025, first appeals sit in sections 356–358, and the draft Income-tax Rules, 2026 replace Form 35 with Form 99. Those apply to orders under the new Act. The portal shows the correct form for your order.

What can you appeal against?

Under section 246A, appealable orders include:

assessment orders (scrutiny, best-judgment, reassessment), where you dispute the income assessed, the tax computed or your status
143(1) intimations with adjustments you disagree with
penalty orders (for example under-reporting penalties under section 270A)
rectification orders under section 154 that increase your liability or reduce a refund
orders on interest, where you deny liability
orders treating you as an assessee in default for TDS (section 201)

Time limit: 30 days

The appeal must be filed within 30 days of the date the demand notice or order is served on you (section 249(2)). The fee rules and the 30-day limit are reported to continue under the 2025 Act.

Missed it? The appellate authority can condone the delay if you show sufficient cause, e.g. illness, the order not being received, or a genuine misunderstanding. File the appeal with a condonation application explaining the reason and supported by evidence. Do not wait longer than you have to.

Before you file: pay the tax on returned income

If you filed a return, you must have paid the tax due on the income you returned before filing the appeal (section 249(4)). Otherwise the appeal is not admitted.

Appeal fee

Assessed income	Fee
Up to ₹1,00,000	₹250
₹1,00,001 – ₹2,00,000	₹500
Above ₹2,00,000	₹1,000
Appeals not related to assessed income (e.g. some penalties, TDS default)	₹250

The fee is paid online through e-Pay Tax (minor head “Others”) before you file, and the challan details are entered in the form.

How to file Form 35 online

Log in to incometax.gov.in → e-File → Income Tax Forms → File Income Tax Forms → Form 35 (or Form 99 for new-Act orders).
Enter the order details: section, date of order, date of service, demand amount and the assessing officer.
Write the statement of facts, a short factual history of the case.
Draft the grounds of appeal. Each ground is a specific objection (for example, “the AO erred in adding ₹X under section 68 without considering the lender’s confirmation”). Include a general ground reserving the right to add, alter or amend grounds.
Attach the order, demand notice and challan, plus any additional evidence with a separate application explaining why it wasn’t produced earlier (rule 46A).
Verify using DSC (where required) or EVC.

The appeal then proceeds in the faceless appeal system: notices, submissions and hearings are online, with video-conference hearings available on request.

Stay of demand while the appeal is pending

Filing an appeal does not automatically stop recovery of the demand. To protect yourself:

Apply to the Assessing Officer for stay of demand (section 220(6)) as soon as the appeal is filed.
Under CBDT instructions, a stay is ordinarily granted on payment of 20% of the disputed demand, with the balance stayed until the appeal is decided. The 20% can be reduced in deserving cases, for example where the addition is plainly contrary to a High Court or Supreme Court ruling.
If the AO refuses, you can approach the Principal Commissioner.
Interest at 1% per month (section 220(2)) runs on any demand finally upheld, so paying part of it can reduce your interest cost.

After the CIT(A) order: further appeal

Stage	Forum	Time limit	Form
Second appeal	Income Tax Appellate Tribunal (ITAT)	Two months from the end of the month in which the CIT(A) order is received	Form 36 (Form 115 under the 2025 Act)
Third appeal	High Court	120 days, on a substantial question of law only	—
Final	Supreme Court	—	—

ITAT fees: ₹500 (assessed income up to ₹1 lakh), ₹1,500 (₹1–2 lakh), and above that 1% of assessed income, up to ₹10,000.

For non-residents and foreign companies with draft orders, an alternative is to object before the Dispute Resolution Panel (DRP) instead of going to the CIT(A).

Frequently asked questions

Can I file an appeal and also apply for rectification?
Yes. Rectification fixes mistakes apparent from the record, while an appeal challenges the merits. Where an error is obvious, rectification is often faster. File the appeal within time anyway to protect your rights.

Can I raise new grounds or produce new evidence before the CIT(A)?
New legal grounds can generally be raised. Additional evidence is admitted only in limited cases under rule 46A, for example where the AO didn’t give you enough opportunity.

How long does a CIT(A) appeal take?
It varies widely, from months to a few years. That is why securing a stay of demand matters.

Is a settlement scheme available instead of appeal?
From time to time the government offers dispute-resolution schemes (such as Vivad se Vishwas). Check whether one is open for your case before deciding.

Received an assessment or penalty order you disagree with? Garvita Jain & Co. drafts grounds and statements of facts, files Form 35, applies for stay of demand and represents you before the CIT(A) and the ITAT. Contact us here, or at contact@garvitajainandco.com or +91 98678 16597.

This article is general information based on the law as of October 2026 and is not professional advice.

Sources

Official

Professional / CA publications

Filing an Income Tax Appeal Before the CIT(A): Timelines and Process