Appeal before Appellate Tribunal

Overview:

An appeal regarding claims of income tax may be filed if a tax payer wishes to object it. Depending on the amount and bracket in which the claim falls, a tax payer can file the appeal before the commissioner, the income tax appellate tribunal, the high court or the Supreme Court.

An appeal before the income tax appellate tribunal, which functions under the Ministry of Law is the second appellate authority for income tax appeals after the commissioner of income tax appeals. A person who is not satisfied with an order passed by the commissioner of income tax appeals can challenge it before the ITAT.  An appeal before ITAT can be filed either by the taxpayer or by the assessing officer.

Purpose:

To extend an opportunity of redressal and challenge to a tax payer against orders passed by tax authorities and officials.

Areas of Application of Law:

Provisions of Income Tax Act, 1961.

Process:

Below is the process of filing an appeal before the income tax appellate tribunal:

- An appeal before the ITAT can be brought if one is aggrieved by orders passed by the commissioner of appeals.
- The appeal has to be filed within 60 days from the date on which the commissioners’ order is communicated to the tax payer.
- Fees to be paid before filing appeal to tribunal depends on the total income determined by the assessing officer.
- It would be Rs. 500 where the assessed income is Rs. 1 lakh or less, Rs. 1500 where it is between Rs. 1-2 lakhs and 1% of assessed subject to a maximum of Rs. 10,000 where assessed income is more than Rs. 2 lakhs.
- To begin with engage a lawyer who will understand your situation as an aggrieved taxpayer and how you wish to challenge the tax claims against you by the income tax authorities.
- Every appeal to the commissioner would be made by filling and submitting form no. 36.
- The taxpayer should ensure that he has read and understood the details under the form and thereafter executed a power of attorney duly authorizing his lawyer.
- Thereafter, the form has to be signed and verified by the aggrieved person himself or through his lawyer by execution of the power of attorney in authorizing him.
- The appellant may also submit documents such as the order of the commissioner against which appeal has been filed, and other documents they wish to rely on.
- On submission of form no. 36 and other relevant documents, the commissioner of income tax appeal will issue a notice to the tax payer and the assessing officer against whose order appeal is being made and fix a date and place for hearing.
- After the hearing with the parties on the fixed date, the commissioner will pass an order in writing either allowing the appeal or disposing it and give reasons for either.
- Once the order is passed, it can be executed against the assessing officer/authority against whom the appeal was brought.