When the Assessing Officer passes an adverse order-whether an assessment creating additional demand, a penalty for under-reporting, or a denial of deduction-the taxpayer’s first legal remedy is an appeal to the Commissioner of Income Tax (Appeals) [CIT(A)] or the Joint Commissioner (Appeals) [JCIT(A)]. If the first appeal fails, the second appeal lies before the Income Tax Appellate Tribunal (ITAT), the final fact-finding authority in income tax disputes.
From 1 April 2026, the appeal framework changes fundamentally. The Income Tax Act, 2025 consolidates appeal provisions under Sections 356-368, and the Draft Income Tax Rules, 2026 prescribe new forms and procedures under Rules 167 and 191-195. Form 35 is replaced by Form 99, Form 36 by Form 115, and Form 36A by Form 116. Two entirely new forms-Form 117 (repetitive appeals) and Form 118 (deferment)-are introduced.
This guide covers both levels of appeal end-to-end: appealable orders, forms, fees, time limits, mandatory e-filing, additional evidence rules, cross-objections, repetitive appeal mechanism, and powers of the appellate authorities. For taxpayers managing income tax return filing (https://www.patronaccounting.com/income-tax-return), understanding the appeal process is critical when assessments go wrong.
Which Orders Can Be Appealed?
First Appeal: JCIT(A) and CIT(A)
The Income Tax Act, 2025 splits first appeals between two authorities based on the nature and value of the case:
| JCIT(A) - Section 356 | CIT(A) - Section 357 |
|---|---|
| Orders where total income does not exceed Rs 50 lakh (threshold may be notified differently) | Orders where total income exceeds Rs 50 lakh or cases of greater complexity |
| Assessment orders under Sections 155, 156 (scrutiny), 157 (best judgment), 263 (reassessment) | Same categories of assessment orders for higher-value cases |
| Penalty orders under Section 439 | Penalty orders, revision orders under Section 377 |
| Orders denying registration (trusts/institutions) | Orders under Sections relating to charitable institutions, TDS defaults, etc. |
| Intimation adjustments under Section 155(1) (if additions are made) | Orders by PCIT/CIT under Section 154 rectification |
Important: Not all orders are appealable. Intimations under Section 155(1) without adjustments, orders giving effect to CIT(A)’s directions, and orders under certain specific sections are excluded from appeal.
Second Appeal: ITAT - Section 362
The following orders are appealable to ITAT:
- Orders of CIT(A) or JCIT(A) - by both taxpayer and the Department
- Rectification orders of CIT(A) under Section 154
- Revision orders of PCIT/CIT under Section 377 (prejudicial to revenue)
- Assessment orders passed in pursuance of DRP directions
- Orders of PCIT/CIT relating to charitable institution registration
The Department can appeal to ITAT against any CIT(A)/JCIT(A) order considered prejudicial to revenue. For companies using tax audit services (https://www.patronaccounting.com/tax-audit), the ITAT appeal is often the decisive forum where major additions are tested.
New Forms: Complete Mapping
| Purpose | Old Form | New Form | Governing Rule | Filed Before |
|---|---|---|---|---|
| Appeal to CIT(A)/JCIT(A) | Form 35 | Form 99 | Rule 167 | CIT(A) or JCIT(A) |
| Appeal to ITAT | Form 36 | Form 115 | Rule 193(1) | ITAT |
| Cross-objection at ITAT | Form 36A | Form 116 | Rule 193(2) | ITAT |
| Repetitive appeal declaration | N/A (new) | Form 117 | Rule 194 | ITAT/HC |
| Deferment of appeal filing | N/A (new) | Form 118 | Rule 195 | ITAT/HC |
Key change: Form 99 introduces mandatory electronic filing with DSC or EVC, a certification that the appellant is not seeking penalty immunity under Section 440, and enables submission of copies of earlier appellate orders on identical issues-none of which existed in old Form 35.
Fee Structure: CIT(A) vs ITAT
| Assessed Income Slab | CIT(A)/JCIT(A) Fee (Section 358(2)) | ITAT Fee (Section 362(6)) |
|---|---|---|
| Up to Rs 1,00,000 | Rs 250 | Rs 500 |
| Rs 1,00,001 to Rs 2,00,000 | Rs 500 | Rs 1,500 |
| Above Rs 2,00,000 | Rs 1,000 | 1% of assessed income or Rs 10,000, whichever is less |
| Non-income matters (e.g., penalty, TDS) | Rs 250 | Rs 500 |
| Stay of demand application | N/A | Rs 500 |
| Cross-objection | N/A | No fee |
Pre-deposit (Section 358(6)): For CIT(A)/JCIT(A) appeals, the appeal is not admitted unless the tax on returned income has been paid. This means only the self-assessed tax, not the disputed addition. Failure to pay is a technical defect that results in outright rejection. CIT(A) may grant exemption from this requirement under Section 358(7) in genuine hardship cases.
How to File Appeal Before CIT(A)/JCIT(A): Step-by-Step
- Verify the order is appealable. Confirm it falls under Section 356 (JCIT(A)) or Section 357 (CIT(A)). Not all orders are appealable.
- Pay tax on returned income. Under Section 358(6), the appeal is not admitted unless the self-assessed tax has been paid. Retain the challan as proof.
- Pay the appeal fee. Determine the applicable fee under Section 358(2) based on assessed income. Pay through the prescribed challan (Major Head 0021 for individuals, 0020 for companies; Minor Head 500).
- Prepare Form 99. Complete the form electronically under Rule 167. Include: order details (DIN, section, date), assessment year, grounds of appeal (concise, numbered, specific amount per ground), statement of facts, and supporting documents. For entities using professional accounting services (https://www.patronaccounting.com/accounting-services), the grounds drafting is the most critical step-vague grounds can be dismissed.
- E-file with DSC or EVC. Under Rule 167(2), Form 99 must be filed electronically. If the return was filed under DSC, the appeal must also use DSC. Otherwise, EVC is permitted. No physical filing is accepted.
- File within 30 days. The appeal must be filed within 30 days of service of the order. Late filing requires a condonation application demonstrating sufficient cause.
- Upload all supporting documents. Each document must be uploaded in the specific section it relates to-the portal does not cross-reference documents across sections.
- Receive acknowledgment. The portal issues an acknowledgment upon successful filing. The appeal is assigned to the National Faceless Appeal Centre (NFAC) for CIT(A) appeals or to the jurisdictional JCIT(A).
How to File Appeal Before ITAT: Step-by-Step
- Obtain certified copy of CIT(A)/JCIT(A) order. This is a mandatory enclosure with the ITAT appeal.
- Pay the ITAT appeal fee. Determine the fee under Section 362(6) based on assessed income. Retain the challan.
- Prepare Form 115. Under Rule 193(1), complete the appeal form with: order details, grounds of appeal (concise, numbered, under distinct heads, no arguments or narrative), statement of facts, and all enclosures. The form must be signed by the person authorised under Rule 167(3).
- E-file through the ITAT portal. From 3 January 2026, all ITAT appeals must be filed exclusively through the e-filing portal with DSC authentication. No physical filing, no counter filing. An appeal is legally instituted only upon completed e-filing with DSC, upload of Rule 9 enclosures, and fee payment.
- File within 2 months. The time limit is 2 months from the end of the month in which the CIT(A)/JCIT(A) order is communicated (Section 362). ITAT may condone delay for sufficient cause.
- Prepare paper book. The paper book (indexed, page-numbered) must be filed digitally at least one day before the hearing, with proof of service on the opposite party at least one week before. Each document must be certified as a true copy.
- Apply for stay if needed. File a stay application (fee: Rs 500) along with the appeal if the disputed demand is outstanding. ITAT may grant stay subject to conditions.
Additional Evidence: Rule 192 Restrictions
Under Rule 192 of the Draft IT Rules, 2026, the appellant cannot produce new evidence before CIT(A)/JCIT(A) except in three specified circumstances:
- AO refused to admit the evidence: The Assessing Officer should have admitted the evidence during assessment but refused to do so.
- Lack of opportunity: The appellant was not given a reasonable opportunity to present the evidence during assessment proceedings.
- Sufficient cause: The appellant could not produce the evidence during assessment for sufficient cause. Simply discovering new documents after the assessment is not sufficient cause.
If additional evidence is admitted, the CIT(A) must record written reasons, and the Assessing Officer must be given an opportunity to examine or rebut the evidence. This is a significant safeguard against ambush evidence.
ITAT position: Filing of additional evidence before ITAT is generally not permitted. However, ITAT may allow production of documents, examination of witnesses, or filing of affidavits if required to pass orders. This power is exercised sparingly.
Cross-Objections and Repetitive Appeals
Cross-Objection: Form 116
When the Department appeals against the CIT(A)’s order to ITAT and you are the respondent, you may file a memorandum of cross-objection in Form 116 under Rule 193(2) within 30 days of receiving notice of the Department’s appeal. The cross-objection allows you to challenge grounds where CIT(A) ruled against you, without having to file a separate appeal. No fee is payable for cross-objections.
Critical tip: If the Department appeals and there are grounds where CIT(A) decided against you too, always file a cross-objection. Missing the 30-day window means those adverse grounds go unchallenged at the ITAT level.
Repetitive Appeals: Form 117 (Section 375, Rule 194)
This is an entirely new mechanism under the 2025 Act. If an identical question of law is already pending before a High Court or Supreme Court, the taxpayer can file a declaration in Form 117 under Rule 194. This keeps the appeal pending before ITAT until the higher court decides the identical question, preventing duplicate proceedings and inconsistent outcomes. This mechanism reduces tribunal workload and provides certainty by allowing the ITAT to follow the higher court’s eventual decision.
Deferment: Form 118 (Section 376, Rule 195)
Form 118 allows a taxpayer to apply for deferment of filing an appeal before ITAT or the High Court under Section 376. This applies where the identical question of law is pending before a High Court or Supreme Court and the taxpayer seeks to defer their own appeal filing until the higher court pronounces.
Powers of CIT(A) vs ITAT
| Power | CIT(A)/JCIT(A) (Section 360) | ITAT (Section 363) |
|---|---|---|
| Confirm assessment | Yes | Yes |
| Reduce assessment | Yes | Yes |
| Enhance assessment | Yes (after giving opportunity to the appellant) | Yes (after giving opportunity) |
| Annul assessment | Yes | Yes |
| Set aside and remand | Yes - remand to AO for fresh assessment | Yes - remand to AO or CIT(A) |
| Admit additional evidence | Restricted under Rule 192 (3 conditions) | Very restricted - only if ITAT requires it |
| Enhancement power | Cannot enhance beyond the scope of issues raised in appeal or arising out of the order | Can enhance or introduce new issues arising from the record |
| Binding nature | Binding on AO; appealable to ITAT | Final on facts; appealable to HC only on substantial question of law |
Old Framework vs New Framework
| Aspect | Old (IT Act 1961) | New (IT Act 2025) |
|---|---|---|
| CIT(A) appeal form | Form 35 under Rule 45 | Form 99 under Rule 167 |
| ITAT appeal form | Form 36 under Rule 47 | Form 115 under Rule 193 |
| Cross-objection form | Form 36A | Form 116 under Rule 193(2) |
| CIT(A) time limit | 30 days from service of order | 30 days from service of order (unchanged) |
| ITAT time limit | 60 days from communication (pre-Oct 2024); 2 months from end of month (post-Oct 2024) | 2 months from end of month of communication (Section 362) |
| E-filing mandate (CIT(A)) | Largely electronic via portal but with exceptions | Mandatory e-filing with DSC/EVC under Rule 167(2) - no physical filing |
| E-filing mandate (ITAT) | Physical filing accepted until Jan 2026 | Mandatory DSC-based e-filing from 3 Jan 2026 (ITAT Amendment Rules 2025) |
| Repetitive appeals | No formal mechanism | Form 117 / Section 375 / Rule 194 - declare identical question pending before HC/SC |
| Pre-deposit (CIT(A)) | Tax on returned income under Section 249(4)(b) | Tax on returned income under Section 358(6) - exemption under Section 358(7) |
Common Mistakes to Avoid
Mistake 1: Missing the 30-day deadline for CIT(A). The 30-day clock starts from the date of service of the order, not from the date of the order itself. If you receive the order on 15 April, the deadline is 14 May. Late filing requires a condonation petition with documented reasons.
Mistake 2: Not paying tax on returned income before filing CIT(A) appeal. Under Section 358(6), the appeal is not admitted unless the self-assessed tax has been paid. This is a hard technical defect. CIT(A) may grant exemption under Section 358(7) in hardship, but relying on this is risky.
Mistake 3: Filing old Form 35 instead of Form 99. From 1 April 2026, Form 35 is replaced by Form 99 under Rule 167. Filing on the old form will result in rejection. Ensure you use the updated form.
Mistake 4: Attempting to file additional evidence without meeting Rule 192 conditions. CIT(A) can only admit new evidence if the AO refused it, the appellant lacked opportunity, or there is sufficient cause. Plan your evidence strategy during the assessment stage. For businesses registered through company registration (https://www.patronaccounting.com/private-limited-company-registration), comprehensive record-keeping during assessment prevents evidence gaps at the appeal stage.
Mistake 5: Not filing a cross-objection when the Department appeals to ITAT. If the Department appeals and the CIT(A) order contains grounds decided against you, file Form 116 within 30 days. Missing this opportunity leaves adverse findings unchallenged.
Mistake 6: Physical filing of ITAT appeal after 3 January 2026. The ITAT Amendment Rules 2025 make e-filing with DSC the only valid mode. An appeal filed physically after this date does not legally exist.
Key Takeaways
The appeal framework under the Income Tax Act, 2025 (Sections 356-368) and Draft IT Rules 2026 (Rules 167, 191-195) introduces a fully digital appeal ecosystem. Form 99 replaces Form 35 for CIT(A) appeals (30-day limit, mandatory e-filing with DSC/EVC, pre-deposit of tax on returned income). Form 115 replaces Form 36 for ITAT appeals (2-month limit, mandatory DSC-based e-filing from January 2026).
Two new mechanisms reduce tribunal congestion: the repetitive appeal declaration (Form 117 under Section 375) keeps appeals pending until identical questions are decided by higher courts, and the deferment application (Form 118 under Section 376) allows taxpayers to delay filing until the higher court pronounces.
CIT(A) has restricted power to admit additional evidence under Rule 192 (three conditions), while ITAT is even more restrictive. Cross-objections (Form 116, 30 days, no fee) must be filed when the Department appeals and the CIT(A) order contains adverse grounds.
The most critical procedural change is the hard e-filing mandate at both levels. From 1 April 2026 (CIT(A)) and 3 January 2026 (ITAT), physical filing is dead. DSC readiness and portal discipline are now foundational requirements for tax litigation.
Need Help Filing an Income Tax Appeal?
Income tax appeals require precise ground drafting, strict adherence to filing deadlines, correct form selection, and strategic evidence management. Whether you are filing before CIT(A) using the new Form 99 or before ITAT using Form 115, professional representation ensures your appeal is procedurally valid and substantively strong.
Explore our income tax compliance services (https://www.patronaccounting.com/income-tax-return) for appeal filing, hearing representation, cross-objection strategy, and stay applications under the new Act.
For queries, reach out at +91 945 945 6700 or WhatsApp us directly.
