All About Appeal before CIT/JCIT (Appeals) – Time Limit | Procedure | Fee

CIT (Commissioner of Income Tax) and JCIT (Joint Commissioner of Income Tax) appeals are part of the administrative appeal process within the income tax system. These appeals are filed by taxpayers who disagree with the assessment or decisions made by the income tax authorities at a lower level.

CIT Appeals: These are appeals made to the Commissioner of Income Tax (Appeals), a higher authority within the Income Tax Department. When a taxpayer disagrees with an assessment order issued by an Assessing Officer, they can file an appeal with the CIT (Appeals). This officer reviews the case, hears the arguments from both the taxpayer and the department, and then issues an order that may confirm, modify, or annul the original assessment.
JCIT Appeals: Although less common as a specific term, any reference to JCIT in the context of appeals would usually pertain to the Joint Commissioner of Income Tax's involvement in the appeals process or in supervisory roles over certain assessments before they reach the CIT (Appeals).

These appeals are a crucial step in the tax litigation process, allowing taxpayers to seek redress without immediately resorting to the judicial courts. The process is designed to ensure fairness and correct any errors or misunderstandings in the initial assessment.

Table of Contents

1. Introduction
2. Appealable Order – Section 246A
3. Time Limit for Presenting a CIT/JCIT (Appeals) 
4. Fees for Filing the CIT/JCIT (Appeals) 
5. Pre-deposit of tax for filing an appeal
6. Documents to be Submitted for CIT/JCIT (Appeals) 
7. Procedure in Appeal
8. Faceless Appeal
9. Conclusion

1. Introduction

An appeal is a process by which a judgement/order of a subordinate authority is challenged before its higher authority. It implies a complaint to a higher authority against the order or judgement of an administrative or appellate authority. At times it may happen that the assessee is aggrieved by an order issued by the Assessing Officer. An Assessing Officer (hereinafter called the AO) is a key figure in the tax system, who is primarily responsible for ensuring that the assessee has declared his/her income correctly and calculated the tax liability accordingly. Also, the AO has the power to investigate cases of suspected tax evasion and raise tax demand and further impose penalties wherever needed.

In such cases the assessee may file an appeal against the order of the AO before the Commissioner of Income-tax (Appeals) or Joint Commissioner (Appeals) and further before the Income Tax Appellate Tribunal (ITAT) if aggrieved by the order of the Commissioner of Income-tax (Appeals) or Joint Commissioner (Appeals) and so on.

Note: The Finance Act 2023 introduced a new designated income tax authority of Joint Commissioner (Appeals) [JCIT (Appeals)] vide amendment in section 246 to handle a certain class of cases prescribed, involving small appeal disputes. The Scheme shall be applicable to such persons or class of persons covered under section 246 of the Income-tax Act.

To implement the functioning of the JCIT (Appeals), the Central Board of Direct Taxes (CBDT) has rolled out e-Appeals Scheme, 2023. The Scheme enlists the scope, procedure to be adopted, penalty proceedings, rectification proceedings, and other provisions to ease the implementation.

The Scheme clarifies that a person shall not be required to appear either personally or through an authorised representative in connection with any proceedings under this Scheme. However, a request for a personal hearing can be made, which can be conducted through video conferencing or video telephony.

The Income-tax Act, 1961 (hereinafter called the Act) provides various recourses to the tax payer to challenge the orders passed by the AO after the assessment proceedings. Concepts pertaining to the appeal/petition that can be filed by the aggrieved assessee before the first appellate authority in the hierarchy of income tax appeals viz. Commissioner of Income Tax (Appeals) or Joint Commissioner (Appeals) (hereinafter called CIT(A)/JCIT(A)) are significant to understand.

2. Appealable Order – Section 246A

Section 246A of the Act lists out the orders passed by various Income-tax Authorities against which an aggrieved assessee can file an appeal before the first appellate authority i.e., the CIT(A)/JCIT(A). Some of the major orders have been listed below:

• Intimation issued under Section 143(1)/(1B) where adjustments have been made in income offered to tax in the return of income.
• Assessment order passed under Section 143(3) except in case of an order passed in pursuance of directions of the Dispute Resolution Panel.
• An assessment order passed under Section 144 – Best Judgement Assessment.
• Order of Assessment, Re-assessment or Re-computation passed after reopening the assessment under Section 147, except an order passed in pursuance of directions of the Dispute Resolution Panel.
• An order of assessment or re-assessment passed under Section 153A or under Section 158BC in case of search/seizure.
• Rectification order passed under Section 154 or under Section 155.
• Order passed under Section 163 treating the taxpayer as agent of non-resident.

3. Time Limit for Presenting a CIT/JCIT (Appeals)

As per Section 249(2) of the Act, appeal should be presented within 30 days of the following date:

1. Where the appeal relates to any assessment or penalty, the date of service of notice of demand relating to the assessment or penalty order.
2. In any other case, the date on which intimation of the order sought to be appealed against is served.

Exceptions: The delay in filing the appeal may be condoned by the CIT(A)/JCIT(A) in certain genuine cases, if the appellant submits an application for condonation of delay, citing out reasons for the same along with corroborative evidences and an affidavit signed by the appellant confirming the condonation.

4. Fees for Filing the CIT/JCIT (Appeals)

Appeal filing fees depends upon the total income determined by the AO in the assessment order which is as follows –

5. Pre-deposit of tax for filing an appeal

The appellant is required to pay the tax determined as per the return of income filed by him, before filing an appeal. If no return of income has been filed, then an amount equal to the amount of advance tax payable by the assessee should be paid.

Exception: The CIT(A)/JCIT(A) may exempt the appellant from payment of tax if appropriate reason has been furnished by the same for such non-payment before filing of appeal.

6. Documents to be Submitted for CIT/JCIT (Appeals)

• Form No. 35 — Form for filing an appeal before CIT(A)/JCIT(A) (including statement of facts and grounds of appeal) – in duplicate. However, e-filing has been made mandatory for persons for whom e-filing of return of income is mandatory w.e.f. 01/03/2016.
• One certified copy of order appealed against.
• Notice of demand in original.
• Copy of challans of fees the details of the challan (i.e., BSR code, date of payment of fee, serial number and amount of fee) are required to be furnished in case of e-filing of form of appeal.

7. Procedure in Appeal

• After receipt of Form no. 35, the CIT(A)/JCIT(A) shall fix a day for the hearing of the appeal, and shall give notice of the same to the appellant and to the AO.
• CIT(A)/JCIT(A) shall have the power to adjourn the hearing of the appeal from time to time.
• CIT(A)/JCIT(A) may, allow the appellant to go into any ground of appeal not specified, if the CIT(A)/JCIT(A) is satisfied that the omission of that ground was not wilful or unreasonable.
• CIT(A)/JCIT(A) may, allow the appellant to submit additional evidence under rule 46A. As mentioned in Rule 46A of the Act, an appellant shall be allowed to submit additional evidence before the CIT(A)/JCIT(A), other than that has already been produced before the AO during the assessment proceedings, only in the following circumstances:

1. 1. Where the Assessing Officer refused to admit the said evidence which ought to have been admitted; or
   2. Where appellant was prevented by sufficient cause from producing evidence called upon by the Assessing Officer; or
   3. Where the appellant was prevented by sufficient cause from producing before the Assessing Officer any evidence which is relevant to any ground of appeal; or
   4. Where Assessing Officer passed the impugned order without giving sufficient opportunity to the appellant to adduce evidence relevant to any ground of appeal.

• CIT(A)/JCIT(A) may, before disposing of any appeal, make such further inquiry as he/she thinks fit, or may direct the AO to make further inquiry and report the result of the same to the CIT(A)/JCIT(A).
• Decision of the Commissioner of Income Tax (Appeals)

The CIT(A)/JCIT(A) shall dispose of the appeal by passing an order whereby decision on each of the grounds of appeal shall be separately mentioned along with reasons for the same.

The CIT(A)/JCIT(A) shall decide in the following ways under different circumstances which are explained as below:

The CIT(A)/JCIT(A) shall before enhancing any assessment or penalty, provide a reasonable opportunity to the assessee to present his case against such enhancement. Also, the CIT(A)/JCIT(A) while disposing off an appeal, may consider and decide any matter arising out of the assessment proceedings, even though such matter was not raised by the assessee before the CIT(A)/JCIT(A).

• Disposal of Appeal

Where it is possible, the CIT(A)/JCIT(A) shall dispose of the appeal within a period of one year from the end of financial year in which the appeal is filed and the respective order shall be issued within a period of 15 days of last hearing.

8. Faceless Appeal

In recent years, the tax department has introduced an e-appeal scheme in order to impart increased transparency, efficiency and accountability and reduce corruption by:

• Eliminating the human interface between the CIT(A)/JCIT(A) and the appellant in due course of appellate proceedings to the extent technologically possible, however, it would be compulsory for the CIT(A)/JCIT(A) to allow a personal hearing if requested for by the appellant;
• Better usage of resources through economies of scale and functional specialisation;
• Reducing the time gap in completion of overall litigation matters.

Under this scheme, the entire assessment process shall be handled by the central authority viz. National Faceless Appeal Centre (hereinafter called the NFAC) which shall assign the appeal directly to a CIT(A)/JCIT(A) of the appeal unit. Thus, NFAC shall serve as the nodal agency between the Assessing Officer, the appellant, or any other person and the Appeal Units and all the communications amongst all of the aforesaid shall be exchanged exclusively by electronic mode. All the orders passed by the CIT(A)/JCIT(A) shall be digitally signed before the same being transmitted to NFAC for serving the same to the appellant.

An appellant shall be allowed to present his/her case before the CIT(A)/JCIT(A), on request for personal hearing. If the CIT(A)/JCIT(A) deems fit, he/she may fix the date and time of hearing to the appellant through the NFAC. Such hearing shall be conducted through video conferencing, in accordance with the procedure laid down by the Central Board of Direct Taxes (CBDT).

Thus, introduction of Faceless Appeal Scheme has helped in a great way to bring a vast reform in the whole litigation process, thereby making the appeal procedure all the more easy, reliable and efficient.

9. Conclusion

The entire appeal process depends upon the facts and circumstances of the case which vary concerning each appellant. The appellant must very carefully review the grounds of appeal before filing them for an appeal. Understanding all the procedures pertaining to filing of appeal before the CIT(A)/JCIT(A) as well as the powers possessed by an appellant and the CIT/JCIT (Appeals), that can be exercised as and when required during the appeal proceedings would facilitate the appellant while he/she is going through the hassle of filing an appeal. .