First Appellate Authority:

• Commissioner of Income-Tax (Appeals) (CIT(A)): This is the first level of appeal for any dispute related to your income tax assessment. If you disagree with the assessment order issued by the Income Tax Officer (ITO), you can file an appeal with the CIT(A) of your jurisdiction.

Second Appellate Authority:                 

• Income Tax Appellate Tribunal (ITAT): This is the second level of appeal, considered a quasi-judicial body. If you are not satisfied with the decision of the CIT(A), you can further appeal to the ITAT. Unlike the CIT(A), the ITAT’s orders are final except in cases where a “substantial question of law” arises, allowing for an appeal to the High Court.

Third Appellate Authority (Rarely used):

• High Court: In very specific cases where the ITAT’s order involves a “substantial question of law,” you can appeal to the High Court of your jurisdiction. This is the final stage of appeal for most income tax disputes.

Additional Notes:

• The Finance Act, 2023 introduced a faceless appeal system for ITAT proceedings, meaning all communication and filings happen electronically.
• The timeline for filing appeals varies depending on the stage:
  • CIT(A) appeal: Within 30 days of receiving the assessment order.
  • ITAT appeal: Within 6 months of the CIT(A) order.
  • High Court appeal: Within 60 days of the ITAT order.

                                        FAQ QUESTIONS

1. What is the order of appellate authorities in income tax matters?

The order of appellate authorities in income tax matters is as follows:

• Assessing Officer (AO):The AO initially determines your income tax liability after considering your return and other documents.
• Joint Commissioner of Income Tax (Appeals) (JCIT(A)):If you are dissatisfied with the AO’s order, you can file an appeal with the JCIT(A). This is the first appellate authority. (Introduced by Finance Act 2023, effective April 1, 2023)
• Commissioner of Income Tax (Appeals) (CIT(A)):If you are still aggrieved after the JCIT(A)’s order, you can appeal to the CIT(A). (Appeals filed before April 1, 2023, will be heard by the CIT(A))
• Income Tax Appellate Tribunal (ITAT):This is the second appellate authority. You can appeal to the ITAT against the order of the JCIT(A) or CIT(A).
• High Court: You can further appeal to the High Court on a substantial question of law arising out of the ITAT’s order.
• Supreme Court: Finally, you can appeal to the Supreme Court from the High Court’s decision.

2. What are the types of orders that can be appealed?

Not all orders passed by the AO are appealable. Only specific orders like assessment orders, penalty orders, interest orders, etc., can be appealed. You can find the list of appealable orders in the Income Tax Act and Income Tax Rules.

3. What are the time limits for filing appeals?

The time limit for filing an appeal with the JCIT(A) or CIT(A) is 60 days from the date of receipt of the AO’s order. For appealing to the ITAT, the time limit is 30 days from the date of receipt of the CIT(A)’s order. For appeals to the High Court and Supreme Court, the time limits are prescribed by their respective rules.

4. What is the fee for filing an appeal?

There is a prescribed fee for filing appeals at each level. You can find the details of the fees on the websites of the respective authorities.

5. Can I file an appeal online?

Yes, you can file appeals with the JCIT(A), CIT(A), and ITAT online through the e-filing portal of the Income Tax Department.

6. What happens after I file an appeal?

The appellate authority will examine your appeal and may call for a hearing. You can present your arguments and submit evidence in support of your appeal. The authority will then issue a final order.

CASE LAWS

Order of Appellate Authorities and Tribunals:

1. Assessing Officer (AO):The initial assessment of your income tax return is done by the AO. If you disagree with their assessment, you can file an appeal.
2. Commissioner of Income Tax (CIT):The first level of appeal is to the CIT of your circle.
3. Income Tax Appellate Tribunal (ITAT):If you’re not satisfied with the CIT’s order, you can appeal to the ITAT. This is a quasi-judicial body specializing in income tax matters.
4. High Court: You can further appeal to the High Court on a substantial question of law arising from the ITAT’s order.

Supreme Court: Finally, you can appeal to the Supreme Court on a substantial question of law arising from the High Court’s order