Appeal to CIT(A) and ITAT Under New Rules 2026: Forms & Procedures

If you have received an adverse assessment order or a penalty notice from the Income Tax Department, your first instinct is to file an appeal. But from 01 April 2026, the appeal process changes significantly. The old Form 35 and Form 36 are gone. New forms, new digital filing mandates, and revised time limits under the Income-tax Act, 2025 and Draft Income-tax Rules, 2026 require you to re-learn the process.

This blog covers everything you need to know about filing appeals before the Commissioner of Income Tax (Appeals) [CIT(A)] and the Income Tax Appellate Tribunal (ITAT) under the new framework. From Form 99 for CIT(A) to Form 115 for ITAT, fee structures, time limits, additional evidence rules, and the new repetitive appeals mechanism — this is your complete guide.

What Is an Income Tax Appeal Under the IT Act, 2025?

An income tax appeal is a statutory right granted to a taxpayer (or the Department) to challenge an adverse order passed by an income-tax authority before a higher appellate forum, as provided under Sections 356–368 of the Income-tax Act, 2025.

The first appellate forum is the Joint Commissioner (Appeals) [JCIT(A)] or Commissioner (Appeals) [CIT(A)], depending on the rank of the officer who passed the order. The second appellate forum is the Income Tax Appellate Tribunal (ITAT), which is the final fact-finding authority. Beyond ITAT, appeals lie to the High Court and Supreme Court only on substantial questions of law.

The Draft Income-tax Rules, 2026 released by CBDT on 07 February 2026 prescribe the procedural rules — including forms, digital filing requirements, fee payment, additional evidence restrictions, and cross-objection procedures — for both levels of appeal.

Key Terms Explained

Form No. 99: The prescribed appeal form for filing before JCIT(A) or CIT(A) under Draft Rule 167, replacing Form 35 of the 1962 Rules.

Form No. 115: The prescribed appeal form for filing before the Appellate Tribunal (ITAT) under Draft Rule 193, replacing Form 36 of the 1962 Rules.

Form No. 116: The form for filing a memorandum of cross-objections before ITAT under Draft Rule 193(2).

Form No. 117: Declaration form for repetitive appeals under Section 375, where identical questions of law are pending before a High Court or Supreme Court (Rule 194).

Form No. 118: Application form for deferment of filing appeal before ITAT or High Court under Section 376 (Rule 195).

Rule 192: Restricts production of additional evidence before CIT(A)/JCIT(A) to specific circumstances — AO’s refusal, lack of opportunity, or sufficient cause.

Section 358: Governs form of appeal, fee, and 30-day limitation for CIT(A)/JCIT(A) appeals.

Section 362: Governs appeals to the Appellate Tribunal with a revised 2-month limitation from month-end.

Who Needs to File an Income Tax Appeal?

You need to file an appeal before CIT(A) if the Assessing Officer has passed any of the following orders against you, and you disagree with the assessment or penalty:

• Assessment order under Section 144B (faceless assessment)
• Reassessment order under Section 148
• Penalty order under Section 271 / 270A (or equivalent 2025 Act sections)
• Intimation under Section 143(1) where adjustments are made to your returned income
• Order treating you as agent of a non-resident
• Rectification order under Section 154

For ITAT appeals, you need to file if you are aggrieved by the order of CIT(A)/JCIT(A), or if the CIT has passed a revision order under Section 377 (equivalent to old Section 263). The Department can also appeal to ITAT against orders of CIT(A) that are considered prejudicial to revenue.

For example, if you are a salaried individual whose assessed income of Rs 18 lakh includes a disputed addition of Rs 5 lakh by the AO, you would file Form 99 before CIT(A) with a fee of Rs 1,000, within 30 days of receiving the demand notice.

Legal Framework: Sections and Rules at a Glance

How to File an Appeal Before CIT(A): Step-by-Step

Step 1: Verify the Appealable Order

Confirm that the order you received falls under Section 356 (JCIT(A) appealable orders) or Section 357 (CIT(A) appealable orders). Not all orders are appealable — for instance, intimations under Section 143(1) without adjustments are not appealable.

Step 2: Pay the Appeal Fee

Under Section 358(2), pay the prescribed fee based on your assessed income: Rs 250 (income up to Rs 1 lakh), Rs 500 (Rs 1–2 lakh), or Rs 1,000 (above Rs 2 lakh). For matters not related to assessed income, the fee is Rs 250. Retain the challan as proof.

Step 3: Pay Outstanding Tax on Returned Income

Under Section 358(6), your appeal will not be admitted unless the tax on returned income has been paid. If no return was filed, pay the amount equal to advance tax payable. CIT(A)/JCIT(A) may exempt this requirement on application under Section 358(7).

Step 4: Prepare and File Form No. 99

Fill Form No. 99 as prescribed under Rule 167(1). The form must be furnished electronically — under digital signature (DSC) if your return was filed under DSC, or through electronic verification code (EVC) otherwise. Attach the order appealed against, demand notice, fee challan, and grounds of appeal.

Step 5: Submit Within 30 Days

File the appeal within 30 days from the date of service of the demand notice (for assessment/penalty orders) or from the date of intimation of the order (for other orders) under Section 358(3). If you miss this deadline, file an application for condonation of delay with reasons.

Step 6: Await Hearing and Order

The CIT(A)/JCIT(A) will fix a hearing date. Under Rule 192, you cannot produce additional evidence unless the AO refused to admit it, you were not given opportunity, or there is sufficient cause. The CIT(A) must record written reasons for admitting additional evidence and allow the AO to examine/rebut it.

How to File an Appeal Before ITAT: Step-by-Step

Step 1: Identify the Appealable Order

Under Section 362(1), a taxpayer can appeal to ITAT against orders of CIT(A)/JCIT(A). Under Section 362(2), the Department can also appeal. Orders passed under Section 377 (revision by CIT) are also appealable.

Step 2: Pay the ITAT Filing Fee

ITAT appeal fees depend on the assessed income: Rs 500 (up to Rs 1 lakh), Rs 1,500 (Rs 1–2 lakh), or 1% of assessed income subject to a maximum of Rs 10,000 (above Rs 2 lakh). For stay applications and other matters, the fee is Rs 500.

Step 3: Prepare Form No. 115

Fill Form No. 115 as prescribed under Rule 193(1). The form, grounds of appeal, and verification must be signed by the person specified in Rule 167(3). Attach certified copies of the CIT(A) order, AO order, grounds of appeal submitted before CIT(A), and statement of facts.

Step 4: File Within 2 Months from Month-End

Under the IT Act, 2025 (effective from 01-10-2024 onwards), the ITAT appeal must be filed within 2 months from the end of the month in which the CIT(A) order is communicated. This replaces the earlier 60-day calendar limit. For example, if you receive the CIT(A) order on 15 July 2026, the deadline is 30 September 2026.

Step 5: File Cross-Objection If Needed

If the Department appeals against the CIT(A) order and you are the respondent, you may file a memorandum of cross-objection in Form No. 116 under Rule 193(2) within 30 days of receiving notice of the Department’s appeal.

Step 6: Prepare Paper Book and Attend Hearing

Prepare a paper book (indexed and page-numbered) containing all relevant evidence, citations of case laws, and documents. File it at least one day before the hearing with proof of service on the opposite party at least a week before. ITAT benches comprise one judicial member and one accountant member; single-member benches may hear cases where assessed income does not exceed Rs 50 lakh.

Documents Required for Filing Appeals

For CIT(A) Appeal (Form 99)

• Completed Form No. 99 — electronically filed under DSC/EVC
• Certified copy of the order being appealed against
• Original notice of demand (for assessment/penalty orders)
• Challan details of appeal fee paid (BSR code, date, serial number, amount)
• Proof of payment of tax on returned income under Section 358(6)
• Statement of facts and grounds of appeal
• Copy of return of income filed for the relevant year
• Copies of earlier appellate orders on identical issues (new in Form 99)
• Director/authorised signatory certification regarding Section 440 immunity

For ITAT Appeal (Form 115)

• Completed Form No. 115 signed per Rule 167(3)
• Two copies of the CIT(A)/JCIT(A) order appealed against (one certified)
• Two copies of the original AO order
• Two copies of grounds of appeal submitted before CIT(A)
• Two copies of the statement of facts filed before CIT(A)
• Copy of ITAT fee paid challan
• Paper book (indexed, page-numbered) with all relevant evidence and case law citations
• For penalty appeals: two copies of the assessment order
• For reassessment appeals: two copies of the original assessment order under Section 147

Appeal Fee Structure: CIT(A) vs ITAT

CIT(A) / JCIT(A) Appeal Fees — Section 358(2)

ITAT Appeal Fees

Note: All fees and charges listed are indicative only and do not constitute a binding offer. Final amounts may vary depending on the volume of work and the complexity involved.

Common Mistakes When Filing Income Tax Appeals

Mistake 1: Missing the 30-day deadline for CIT(A). Many taxpayers assume the deadline runs from the date they learn about the order, not from the date of service of the demand notice. Section 358(3) is strict — the clock starts from the date of service. File the appeal first, then prepare additional submissions.

Mistake 2: Not paying tax on returned income before filing. Under Section 358(6), the appeal is not admitted unless you have paid the tax as per your return. Not the disputed tax — just the self-assessed tax. Failure to pay this is a technical defect that can get your appeal rejected outright.

Mistake 3: Filing Form 35 instead of Form 99. From 01 April 2026, the old Form 35 is replaced by Form 99. Filing on the old form will result in rejection. Ensure you use the updated form as per Rule 167 of the Draft IT Rules, 2026.

Mistake 4: Attempting to file additional evidence without meeting Rule 192 conditions. CIT(A) can only admit new evidence if the AO refused it, you lacked opportunity, or there is sufficient cause. Simply discovering new documents is not sufficient cause. Plan your evidence strategy during the assessment stage itself.

Mistake 5: Not filing a cross-objection when the Department appeals to ITAT. If the Department appeals against the CIT(A) order and there are certain grounds where CIT(A) ruled against you too, you should file a cross-objection in Form 116 within 30 days. Missing this opportunity means those grounds go unchallenged.

Consequences of Late Filing and Non-Compliance

Failure to file an appeal within 30 days before CIT(A) under Section 358(3) may result in the demand becoming final and enforceable, unless condonation of delay is granted by CIT(A) under Section 358(5).

If a taxpayer fails to pay the tax on returned income as required under Section 358(6) before filing the appeal, the appeal shall not be admitted. The only exception is where CIT(A) grants an exemption under Section 358(7) based on an application with recorded reasons.

For ITAT appeals, the 2-month limitation from the end of the month of order receipt is mandatory. ITAT may condone the delay if satisfied that there was sufficient cause, but courts have increasingly scrutinised delay condonation applications and rejected appeals with unexplained delays exceeding a few months.

Non-compliance with a demand while an appeal is pending does not automatically result in a stay. The taxpayer must file a separate stay application with Rs 500 fee. Without a stay order, the Department can proceed with recovery actions including bank account attachment under Section 226(3) equivalent provisions.

How Appeal Provisions Interact Under the New Framework

Section 358 governs the form, fee, and time limit for CIT(A) appeals, while Rules 167 and 191 operationalise it by prescribing Form 99 and the digital filing mandate — making electronic submission the default mode for the first time.

Rule 192 restricts additional evidence before CIT(A), while Rule 193 prescribes Form 115 for ITAT appeals and Form 116 for cross-objections — together they form the complete procedural chain from first appeal to second appeal.

Section 375 and Rule 194 create a new mechanism for repetitive appeals: if an identical question of law is pending before a High Court or Supreme Court, the taxpayer can file a declaration in Form 117 to keep the appeal pending until the higher court decides, avoiding wastage of tribunal resources.

Old Rules (1962) vs New Rules (2026): Appeal Provisions Compared

Key Takeaways

Form 99 replaces Form 35 for CIT(A)/JCIT(A) appeals, and Form 115 replaces Form 36 for ITAT appeals under the Draft Income-tax Rules, 2026 effective 01 April 2026.

The CIT(A) appeal must be filed within 30 days of the demand notice or order under Section 358(3), while the ITAT appeal deadline is 2 months from the end of the month in which the CIT(A) order is communicated under Section 362.

Digital filing is now mandatory for CIT(A) appeals — Form 99 must be submitted electronically under DSC or EVC as per Rule 167(2), with no paper filing option.

Rule 192 restricts additional evidence before CIT(A) to three specific grounds: AO’s refusal, lack of opportunity, or sufficient cause — requiring written reasons from CIT(A) and an opportunity for the AO to rebut.

Form 99 introduces new requirements: submission of earlier appellate orders on identical issues and a mandatory certification by the director/authorised signatory that the appellant is not seeking immunity from penalty under Section 440.

Need Help With Your Income Tax Appeal?

Filing an income tax appeal requires careful attention to form selection, fee calculation, document preparation, and strict adherence to time limits. A technical defect in your filing can result in rejection, and missing the deadline makes the adverse order final.

If you have received an assessment order, penalty notice, or demand that you wish to challenge, our experienced CA team can assist. Learn more about our income tax notice and demand management services, or contact us on WhatsApp at +91 945 945 6700.