When taxpayers disagree with an order passed by the Assessing Officer (AO) or other tax authorities, they have the right to challenge the decision by filing an appeal with the Commissioner of Income Tax (Appeals) (CIT(A)). The appeal process is a critical part of the tax system, allowing taxpayers to seek a fair review of their case.
One of the most important documents in this process is Form 35, which is the official form used to file an appeal. This blog will guide you through the complete procedure for filling Form 35, the necessary steps to ensure the appeal is filed correctly, and the key components that must be included in the form.
What is Form 35?
Form 35 is the prescribed form for filing an appeal before the CIT(A) against orders passed by the Assessing Officer (AO) under various sections of the Income Tax Act, 1961. The form is used for a variety of orders, including assessment orders, penalty orders, reassessment orders, and rectification orders.
Form 35 is a structured document designed to ensure that the taxpayer provides all the necessary information in a clear and consistent manner. It serves as the formal request to challenge the tax authority’s decision and initiate the appeal process.
Step-by-Step Procedure for Filing Form 35 (Appeal)
The process for filing an appeal using Form 35 involves several steps, which are outlined below:
Step 1: Identify the Order Being Challenged
The first step in the appeal process is to identify the order that you are challenging. The most common types of orders that can be appealed include:
- Assessment Orders under sections 143(3) or 144.
- Penalty Orders under section 271(1)(c) (concealment of income).
- Reassessment Orders under section 147.
- Rectification Orders under section 154.
- TDS/TCS Orders under section 201 (for non-deduction or non-payment of taxes).
Once the order is identified, you can begin filling out Form 35 to file your appeal.
Step 2: Fill Out Form 35
Form 35 requires the taxpayer to provide essential details about the appeal. Here are the key sections to be filled out in the form:
- Personal Details:
- Name of the taxpayer (Individual/Company/Partnership).
- Permanent Account Number (PAN).
- Address: The current address where the taxpayer resides.
- Contact Information: Phone number and email address.
- Details of the Order Being Appealed:
- Order Number and Date: The unique number assigned to the order, along with the date of receipt.
- Nature of the Order: Specify the nature of the order (assessment, penalty, rectification, etc.).
- Grounds of Appeal:
- Grounds for Disagreement: Clearly list the reasons for challenging the order. These grounds must include specific points where you believe the order is incorrect or unjust.
- Example: “The Assessing Officer has incorrectly disallowed business expenses under Section 37.”
- Relief Sought:
- What Relief You Are Seeking: Specify the relief you are asking for in the appeal. This could be a reduction in the penalty, a reassessment of the taxable income, or any other modification.
- Statement of Facts:
- Provide a concise and clear statement of facts that explain your position and why the order should be modified or annulled. This should be based on relevant legal provisions and evidence.
Step 3: Attach Supporting Documents
To support your appeal, you must attach all relevant documents. Some common documents include:
- Copies of the order being appealed.
- Income tax returns and assessment details.
- Bank statements, TDS certificates, invoices, and other financial documents that support your claim.
- Medical certificates (if applicable), especially in cases where the delay in filing the appeal is being condoned due to illness.
- Proof of payment of taxes, such as challans, or TDS receipts.
The CIT(A) will assess your appeal based on the information provided in Form 35 and the supporting documents.
Step 4: Pay the Appeal Fee
The Income Tax Act requires taxpayers to pay an appeal fee when filing Form 35. The fee is based on the total income of the taxpayer and is as follows:
- ₹500 for incomes exceeding ₹2 lakh but less than ₹10 lakh.
- ₹1,000 for incomes exceeding ₹10 lakh.
This fee must be paid at the time of filing the appeal, and a receipt of the payment must be attached to Form 35.
Step 5: Submit the Appeal to the CIT(A)
After filling out Form 35 and attaching all necessary documents, the taxpayer must submit the appeal to the CIT(A). The form can be submitted physically or electronically, depending on the jurisdiction and the method allowed by the tax authorities.
The CIT(A) will acknowledge the receipt of the appeal and process it accordingly. Once the appeal is accepted, the taxpayer may be scheduled for a hearing.
Step 6: Attend the Hearing (If Required)
In some cases, the CIT(A) may schedule a hearing to discuss the appeal further. During the hearing, both the taxpayer and the Assessing Officer (AO) may present their arguments and evidence.
- Taxpayer’s Role: The taxpayer must be ready to explain their position, submit additional evidence, and answer any questions raised by the CIT(A).
- AO’s Role: The AO will defend their original decision and provide explanations for their actions.
Step 7: CIT(A)’s Decision
After considering all the facts, the CIT(A) will issue a ruling. The appeal may be:
- Allowed: The CIT(A) may modify or annul the original order.
- Partially Allowed: The appeal may be partly accepted, with certain adjustments made to the order.
- Rejected: The CIT(A) may dismiss the appeal if they find the taxpayer’s arguments unconvincing.
The taxpayer can further appeal to the Income Tax Appellate Tribunal (ITAT) if they are not satisfied with the CIT(A)’s decision.
Key Points to Remember While Filing Form 35
- Accurate and Complete Information: Ensure that Form 35 is filled accurately, and all required details are provided. Missing information may result in rejection of the appeal.
- Timely Filing: File the appeal within 30 days of receiving the order. If there is a delay, ensure that a request for condonation of delay is filed with sufficient evidence.
- Clear Grounds for Appeal: Be specific and concise when stating the grounds of appeal. Strong legal arguments and supporting documents will strengthen your case.
- Payment of Appeal Fee: Pay the required fee based on your total income and ensure that the payment receipt is included with your appeal.
Conclusion
Form 35 is a vital document in the Income Tax appeal process. By following the correct procedure for filing Form 35, taxpayers can ensure that their appeal is considered by the Commissioner of Income Tax (Appeals) (CIT(A)) and have an opportunity to challenge the tax authority’s decision.
It is essential to fill out Form 35 carefully, attach all supporting documents, and pay the necessary appeal fee to avoid delays or rejections. With a well-prepared appeal, taxpayers can seek a fair review of their case and ensure justice is served.
Additional Resources
Learn more about Tax Provisions on the official Income Tax India website.
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