In certain situations, a taxpayer or assessee may disagree with an order issued by the Assessing Officer concerning their total income. In such cases, one option is to complete and submit Form 35 to the Income Tax Department to appeal against the order.
Section 246A of the Income Tax Act specifies the orders against which an appeal can be filed. These include search assessment orders under Section 153A and intimations issued under Section 143(1). This guide explains the key details of Form 35, the online procedure for filing an income tax appeal, and the applicable Form 35 fees.
What Is Form 35 Under the Income Tax Act?
Form 35 is used by taxpayers or assessees who are dissatisfied with an order passed by the Assessing Officer and wish to appeal to the Commissioner of Income Tax (Appeals). By completing and submitting this form, an assessee can initiate an appeal against an eligible order. Form 35 may be filed online or offline, depending on the applicable filing requirements.
When submitting Form 35, you must also provide a Memorandum of Appeal, a statement of facts, and the grounds on which the appeal is based. A copy of the order being challenged and the notice of demand should also be attached.
How to File Form 35 Under the Income Tax Act
Form 35 can be submitted through the official Income Tax e-filing portal or through the applicable offline process. Follow these steps to file it online:
- Step 1: Visit the official Income Tax e-filing portal and sign in using your user ID and password.
- Step 2: Once logged in, select the ‘e-File’ option from the menu bar. From the drop-down menu, choose ‘Income Tax Forms’, followed by ‘File Income Tax Forms’.
- Step 3: On the ‘File Income Tax Forms’ page, search for Form 35 and select it.
- Step 4: When the next page opens, click ‘Let’s get started’ to begin the filing process.
- Step 5: Complete all the required fields on the Form 35 page and select ‘Preview’ once you have entered the information.
- Step 6: Review the information displayed on the preview page for accuracy, then click ‘Proceed to e-Verify’.
- Step 7: A confirmation dialogue box will appear asking whether you want to continue with e-verification. Select ‘Yes’ to proceed.
- Step 8: Complete the e-verification process on the next page. Once verification is successful, a confirmation message will appear with the acknowledgment number and transaction ID. You will also receive a confirmation via SMS and email after successful submission.
What Are the Fees for Filing a Form 35 Income Tax Appeal?
A prescribed fee must be paid before submitting an appeal to the Commissioner of Income Tax. The amount payable depends on the total income assessed by the Assessing Officer. The table below outlines the applicable appeal fees for Form 35.
| Total Income Assessed by the AO | Appeal Fee |
|---|---|
| Assessed total income of Rs. 1 lakh or less | Rs. 250 |
| Assessed total income above Rs. 1 lakh and up to Rs. 2 lakh | Rs. 500 |
| Assessed total income exceeding Rs. 2 lakh | Rs. 1,000 |
| Appeals in all other cases | Rs. 250 |
What Is the Time Limit for Filing an Income Tax Appeal?
If you are eligible to appeal an income tax order, it is important to submit your appeal within the prescribed deadline. Missing the time limit may affect your ability to challenge the order. Generally, an appeal against a penalty or reassessment order must be filed within 30 days of receiving the relevant Income Tax notice. In cases involving failure to deduct TDS, the 30-day period is calculated from the date the TDS is paid.
What Is the Procedure for Filing an Income Tax Appeal?
The process of challenging an income tax assessment through an appeal involves several important steps.
- First, submit the appeal application using Form 35.
- Next, the Commissioner of Income Tax (Appeals) will arrange a hearing and determine its date and venue after receiving the application.
- A notice specifying the hearing date and location is sent to both the appellant and the Assessing Officer. During the proceedings, either party may appear personally or through an authorised representative.
- During the hearing, the Commissioner of Income Tax (Appeals) may adjourn the proceedings whenever necessary.
- The Commissioner may also conduct inquiries relevant to the appeal and ask the Assessing Officer to submit a report following further investigation.
- Before approaching the court, taxpayers must pursue the applicable appeal process before the Commissioner of Income Tax (Appeals) with the relevant jurisdiction.
What Documents Are Needed to File an Income Tax Appeal?
The following documents must be submitted as part of the appeal process:
- Form 35
- A copy of the assessment order
- The original notice of demand
- A copy of the income tax payment challan
The appeal form must be signed and verified by the following individuals, depending on the type of taxpayer:
- Individual taxpayer: The taxpayer or an authorised representative.
- Company: The Managing Director or another director.
- Firm: The Managing Partner or another partner, excluding minors.
- Foreign company: An authorised representative of the company.
- LLP: The Designated Partner or another partner.
- Local authority: The Principal Officer.
- Political party: The party’s Chief Executive Officer.
- Association: The Principal Officer or any member of the association.
Now that you understand the process for filing Form 35 with the Commissioner of Income Tax (Appeals), you can submit an appeal if you disagree with the Assessing Officer’s decision concerning exemptions, loss benefits, additions, or other matters. Make sure to pay the applicable appeal fee before submitting Form 35. Since filing an appeal and responding to notices can be complicated, you may require professional assistance.