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Income Tax Appeal (CIT(A), ITAT) in Delhi

Appeals to the Commissioner (Appeals) and the Joint Commissioner (Appeals), stay of demand, appeals to the Income Tax Appellate Tribunal, and the choice between rectification, appeal and revision.

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Quick answers

What is the time limit for an income tax appeal to CIT(A)?

30 days from the date the notice of demand is served (for assessment and penalty orders) or the date the order is served (for other orders). A late appeal can be admitted if the delay is explained by sufficient cause, so a delay-condonation request should be filed with it.

Do I have to pay 20% of the demand to file an appeal?

No. To file the first appeal you only need to have paid the tax on the income you yourself returned. The 20% figure comes from CBDT guidelines for <em>stay of demand</em> while the appeal is pending. The Union Budget 2026-27 announced a cut to 10% of the core tax demand; the Finance Act, 2026 did not write a percentage into the Act, so a stay application relies on the CBDT instruction in force when it is filed.

Should I appeal or file a rectification?

Rectification suits a mistake apparent from the record, such as TDS credit not given or an arithmetical error. An appeal is needed where the officer has decided a question of fact or law against you. Since the 30-day appeal clock keeps running while a rectification is pending, both can be filed where the order has both kinds of error.

An income tax appeal is the statutory route for challenging an assessment, penalty or other order that the taxpayer does not accept. The first appeal goes to the Commissioner of Income-tax (Appeals), or for some orders of officers below the rank of Joint Commissioner, to the Joint Commissioner (Appeals). It is filed online, generally within 30 days, and is heard under the faceless appeal scheme. Orders of the first appellate authority can be taken to the Income Tax Appellate Tribunal (ITAT), and from there to the High Court on a substantial question of law. Filing an appeal does not by itself stop recovery of the demand; a separate stay application is needed. Orders for years up to FY 2025-26 remain under the Income-tax Act, 1961 (appeal in Form 35); the Income-tax Act, 2025, in force from 1 April 2026, re-enacts the same scheme in Sections 356 to 365 (appeal in Form 99). SKAG and Associates reviews orders, drafts grounds of appeal and stay applications, and represents taxpayers before the appellate authorities.

What our Income Tax Appeal service covers

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Order review Reading the order, the demand notice and the record to separate errors that can be rectified from issues that need an appeal.
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First appeal Statement of facts, grounds of appeal and filing of Form 35 / Form 99 to the Commissioner (Appeals) or Joint Commissioner (Appeals).
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Stay of demand Stay application to the Assessing Officer, and where needed to the higher authority, with the proposed payment and grounds.
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Faceless appeal hearings Written submissions, paper book, additional evidence requests and video-conference hearings through the National Faceless Appeal Centre.
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Tribunal appeal Form 36 / Form 115 appeal or cross-objection before the ITAT, and stay petitions before the Tribunal.
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Alternatives to appeal Rectification requests, revision applications and responses to outstanding demand on the e-filing portal.

How the engagement works

1
Share the order The assessment or penalty order, the demand notice and the date each was received are shared with the firm.
2
Diarise the limitation The last date for appeal, and the rectification and revision limits, are worked out from the date of service.
3
Choose the route Rectification, appeal, revision or a combination is decided issue by issue, and admitted tax is identified.
4
File appeal and stay Grounds, statement of facts and the fee challan are filed online, followed by the stay application.
5
Represent and follow up Notices from the appellate authority are answered, hearings attended and the appeal effect order tracked.

How to start

Because the appeal period is short, send the order as soon as it is received, by email or WhatsApp.

Send these three things first:

  1. The assessment or penalty order and the notice of demand, with the date each was served
  2. The return, computation and the replies filed during the assessment
  3. Proof of tax paid (challans, Form 26AS) and any stay or rectification already applied for

What you provide

  • The order, demand notice and the full assessment record
  • Facts and evidence for each disputed issue
  • Approval of the grounds before filing, and e-verification on your own login

What the firm does

  • Working out limitation and admitted tax
  • Drafting grounds, statement of facts and the stay application
  • Filing, submissions and hearings as authorised representative

What happens next: The office confirms the last date, the issues to be appealed and the documents still needed, and sets out scope and fees in an engagement letter.

Documents for an appeal

  • → Assessment, penalty or other order appealed against, and the notice of demand
  • → Show cause notices, notices under Section 142(1) / 143(2) and the replies filed
  • → Return of income, computation, audit report (if any) and financial statements
  • → Evidence for each disputed addition: bank statements, agreements, invoices, confirmations
  • → Challans for tax on the returned income and for any amount paid towards the demand
  • → Earlier appellate orders on the same issue (your own or in your group)
  • → e-Filing portal access, or authorisation for the representative

For a specific Income Tax Appeal matter, you may send the details through the contact form, call +91 88022 54567 or write on WhatsApp (Mon–Sat, 10:00 AM–7:00 PM). Please do not send passwords or OTPs.

Government appeal fees

The fee depends on the total income assessed by the Assessing Officer and is paid through e-Pay Tax before filing.

ItemGovernment fee / dutyBasis and notes
First appeal to CIT(A) / JCIT(A)Rs 250 (assessed income up to Rs 1 lakh); Rs 500 (above Rs 1 lakh up to Rs 2 lakh); Rs 1,000 (above Rs 2 lakh); Rs 250 in other casesSection 249(1) of the 1961 Act; Section 358 of the 2025 Act
Appeal to ITATRs 500 (assessed income up to Rs 1 lakh); Rs 1,500 (above Rs 1 lakh up to Rs 2 lakh); 1% of assessed income, up to Rs 10,000 (above Rs 2 lakh); Rs 500 in other casesSection 253(6) of the 1961 Act; Section 362(6) of the 2025 Act
ITAT stay applicationRs 500Section 253(7) / Section 362(8); no fee on cross-objections
Rectification request or stay application to the Assessing OfficerNilFiled on the e-filing portal

Government fees as stated in the Acts (Sections 358 and 362 of the Income-tax Act, 2025 as published in the e-Gazette); the challan on the e-filing portal shows the amount payable. The firm’s professional fees are not published and are agreed in the engagement letter.

Appeal, stay and the time limits that apply

Rectification, appeal or revision?

An adverse order can be corrected in three ways. They answer different problems and have different time limits.

Route1961 Act / 2025 ActUse it forTime limit
RectificationSection 154 / Section 287A mistake apparent from the record: TDS or tax paid not credited, arithmetical errors, a claim allowed in law but not given effect.Order of rectification within four years from the end of the financial year in which the order was passed.
Appeal to CIT(A) / JCIT(A)Sections 246, 246A, 249 / Sections 356, 357, 358Any disputed question of fact or law, including additions, disallowances, penalties and interest.30 days from service of the demand notice or order.
Revision on applicationSection 264 / Section 378Asking the Principal Commissioner or Commissioner to revise an order in your favour, for example where a claim was missed.Application within one year of the order being communicated. Not available while an appeal can still be filed or is pending, unless the right of appeal is waived.

Revision under Section 263 (Section 377 of the 2025 Act) is different: the Commissioner uses it against an order he considers erroneous and prejudicial to the Revenue, and an order under it can be appealed to the Tribunal. An order on a Section 264 application cannot be appealed; the remedy is a writ petition. If the notice you hold is not yet an order, the income tax notice explainer and the income tax notice reply page cover the earlier stage.

First appeal to the Commissioner (Appeals)

  • Who hears it: the Commissioner of Income-tax (Appeals) for most orders. Since the Finance Act 2023, a Joint Commissioner (Appeals) hears certain appeals against orders of officers below the rank of Joint Commissioner. The portal and the National Faceless Appeal Centre (NFAC) allocate the appeal.
  • Appealable orders: assessment and reassessment orders, intimations under Section 143(1), penalty orders, orders treating a deductor or collector as in default for TDS or TCS, refusal of a rectification, and others listed in Section 246A (Section 357 of the 2025 Act).
  • Form: Form 35 for orders under the 1961 Act; Form 99 under the Income-tax Rules, 2026 under Rule 167, for appeals under the 2025 Act; the e-filing portal offers the form that matches the order appealed against. It is filed online, signed with a digital signature or e-verified, with the grounds of appeal, statement of facts, a copy of the order and demand notice, and the fee challan. A starting format is in the Form 35 appeal template.
  • Tax on returned income: the appeal is admitted only if the tax due on the income returned has been paid (or, where no return was filed, an amount equal to the advance tax payable). Only in the no-return case can the appellate authority, on an application with reasons, exempt the appellant from this condition (Section 249(4) proviso; Section 358(7) of the 2025 Act).
  • Condonation of delay: a late appeal can be admitted if there was sufficient cause. File a short application with an affidavit explaining the delay day by day, with evidence such as medical records or proof of when the order was actually received.
  • Additional evidence: documents not produced before the Assessing Officer are admitted only in the circumstances in Rule 46A of the Income-tax Rules, 1962, on a separate application, and the Assessing Officer is given a chance to comment.
  • Powers: the Commissioner (Appeals) can confirm, reduce, enhance or annul the assessment. Enhancement requires a notice and an opportunity to be heard.

Faceless appeals

Appeals before the Commissioner (Appeals) are conducted under the Faceless Appeal Scheme, 2021 (CBDT Notification No. 139/2021 dated 28 December 2021). Notices, submissions and the order are exchanged on the e-filing portal, and a personal hearing by video conference is given on request. Since the decision rests on what is uploaded, submissions should be complete: one note per ground and an indexed paper book.

Stay of demand during the appeal

An appeal does not suspend the demand. Under Section 220(6) of the 1961 Act (Section 411(12) of the 2025 Act), the Assessing Officer may treat the taxpayer as not in default for the amount in appeal while the appeal is pending. CBDT’s Office Memorandum of 29 February 2016, as modified on 31 July 2017, sets a standard of 20% of the disputed demand for granting stay until the first appeal is decided; a lower or higher amount is referred to the Principal Commissioner. Courts have held that the 20% figure is a guideline and does not take away the officer’s discretion to accept less where the case is strong or there is hardship. The Union Budget 2026-27, presented on 1 February 2026, announced that this pre-payment would come down to 10%, calculated only on the core tax demand. The Finance Act, 2026 did not put a percentage into the Act, so the figure applied is the one in the CBDT instruction in force when the stay is sought; the office checks the current instruction on incometaxindia.gov.in before the application is made. The application states the appeal particulars, the grounds that make the demand doubtful, any hardship, and the amount offered.

Appeal to the Income Tax Appellate Tribunal

  • Time limit: within two months from the end of the month in which the appellate order is communicated (Section 253(3) as amended by the Finance (No. 2) Act, 2024; Section 362(3) of the 2025 Act). A memorandum of cross-objections may be filed within 30 days of receiving notice of the other side’s appeal. Delay may be condoned for sufficient cause.
  • Form: Form 36 under the 1961 Act; Form 115 under Rule 193(1) of the Income-tax Rules, 2026, with Form 116 under Rule 193(2) for cross-objections. It can be filed through the Tribunal’s e-filing portal on itat.gov.in.
  • Stay by the Tribunal: the Tribunal may stay the demand for up to 180 days, extendable to a total of 365 days, ordinarily on deposit of at least 20% of the amount payable or equivalent security (provisos to Section 254(2A) of the 1961 Act).
  • Delhi: the ITAT has benches in Delhi that hear appeals from orders passed in Delhi. Hearings may be physical or virtual, as the bench directs.
  • Departmental appeals: under CBDT Circular No. 09/2024 dated 17 September 2024, the Department generally does not appeal where the tax effect is below Rs 60 lakh (ITAT), Rs 2 crore (High Court) or Rs 5 crore (Supreme Court), subject to listed exceptions.

Beyond the Tribunal, an appeal lies to the High Court under Section 260A (Section 365 of the 2025 Act) within 120 days, and only on a substantial question of law.

Time limits at a glance

StepTime limitCounted from
Appeal to CIT(A) / JCIT(A)30 daysService of the demand notice, or of the order where there is no demand
Appeal to ITATTwo monthsEnd of the month in which the appellate order is communicated
Cross-objection before ITAT30 daysReceipt of notice of the other side’s appeal
Appeal to High Court120 daysReceipt of the Tribunal’s order
Revision application (Section 264)One yearCommunication of the order
Rectification (Section 154)Four yearsEnd of the financial year in which the order was passed

Representation

A taxpayer may file and argue an appeal personally or through an authorised representative under Section 288 of the 1961 Act, which includes a chartered accountant, an advocate and certain others. Representation before the appellate authorities is not reserved to any one profession. SKAG and Associates acts as authorised representative on a written authorisation from the taxpayer; a format is in the authority letter template.

Official sources

Common mistakes

  • Counting 30 days from the order date. Limitation runs from the date of service, but waiting until the last day leaves no margin for portal or signature problems.
  • Assuming the appeal stops recovery. Without a stay, refunds can be adjusted and recovery can begin once the demand notice period ends.
  • Not paying tax on the returned income. Where a return was filed, the appeal is not admitted until the tax on the income returned is paid; exemption can be sought only where no return was filed.
  • New evidence without a Rule 46A request. Documents not filed before the Assessing Officer need a separate application explaining why they were not produced earlier.

Income Tax Appeal for clients in New Delhi & Delhi NCR

SKAG and Associates is a firm of Chartered Accountants based at Kh.No-84, Plot No -RZ-I-1, F/Floor, 12/2, Main Rd, opposite Yammaha Showroom, Mahavir Enclave, New Delhi – 110045. The firm handles Income Tax Appeal work and allied compliance for individuals, professionals, firms and companies across New Delhi, South West Delhi and the wider Delhi NCR region, as well as clients elsewhere in India who engage it remotely.

Engagements are conducted strictly in accordance with the Chartered Accountants Act, 1949 and the ICAI Code of Ethics. To discuss your requirement, you are welcome to contact the office or call +91 88022 54567 during working hours (Mon–Sat, 10:00 AM–7:00 PM).

Frequently asked questions

Can I file an income tax appeal after 30 days? +

Yes, with an application for condonation of delay. The Commissioner (Appeals) may admit the appeal if satisfied that there was sufficient cause for the delay. Explain the whole period of delay with evidence; an unexplained or long delay may be refused.

What is the difference between Form 35 and Form 99? +

Both are the form of appeal to the Commissioner (Appeals) or Joint Commissioner (Appeals). Form 35 is under the Income-tax Rules, 1962 for orders under the 1961 Act; Form 99 is its counterpart under the Income-tax Rules, 2026 for orders under the Income-tax Act, 2025.

Will the Department adjust my refund against a demand under appeal? +

It can, unless the demand has been stayed. Record on the portal, under Response to Outstanding Demand, that the demand is disputed and in appeal, and apply for stay. If stay is granted on payment of a part, that should be reflected before any further adjustment.

Is there a personal hearing in a faceless appeal? +

Yes, on request, by video conference. The request is made through the portal in reply to the hearing notice. Most appeals are decided on the written submissions and paper book, so those should be complete.

When should a revision under Section 264 be preferred to an appeal? +

Where the order is not appealable, or where the error is your own (for example, a deduction missed in the return) and a request to the Commissioner is simpler. Revision is not available while the time to appeal is running or an appeal is pending, unless the right of appeal is waived, and its order cannot be appealed.

Does paying the demand mean I cannot appeal? +

No. Paying a demand, in full or in part, does not take away the right to appeal; if the appeal succeeds, the excess is refunded with interest as the Act provides. Paying and not appealing is relevant only if you seek immunity from penalty under Section 270AA.

Questions about Income Tax Appeal?

You may contact CA Gaurav Singh to discuss your specific facts and requirements.

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