There are situations where a taxpayer or assessee may disagree with an order passed by the Assessing Officer regarding the computation of income or tax liability. In such cases, the appropriate course of action is to file Form 35 with the Income Tax Department.
The orders against which an appeal can be filed are specified under Section 246A of the Income Tax Act. These include, among others, assessment orders issued under Section 153A and intimations received under Section 143(1). This guide explains the purpose of Form 35, the procedure for filing an income tax appeal online, and the applicable appeal fees.
What is Form 35 under the Income Tax Act?
Form 35 is used by taxpayers or assessees who wish to challenge an order passed by the Assessing Officer. By submitting this form, an appeal can be made before the Commissioner of Income Tax (Appeals) against eligible orders issued by the Assessing Officer.
The form can be filed through both online and offline modes. Taxpayers who file their Income Tax Returns electronically can submit Form 35 online, while those filing returns offline may also submit the appeal offline.
Along with Form 35, the taxpayer is required to submit a Memorandum of Appeal, a statement of facts, and the grounds of appeal. A copy of the order being challenged and the corresponding notice of demand should also be attached.
How to File Form 35 of the Income Tax Act?
You can submit Form 35 through the Income Tax e-filing portal or by using the offline process.
Step 1: Visit the official Income Tax e-filing portal and log in using your user ID and password.
Step 2: Click on the ‘e-File’ menu available on the dashboard. From the drop-down list, select ‘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: Once the page opens, click ‘Let’s Get Started’.
Step 5: Complete all the required details in Form 35 and click on ‘Preview’ to review the information.
Step 6: Verify the details shown in the preview and click ‘Proceed to e-Verify’.
Step 7: A confirmation message will appear. Click ‘Yes’ to continue with the e-verification process.
Step 8: Complete the e-verification using the available verification method. After successful submission, an acknowledgement number and transaction ID will be displayed. A confirmation message will also be sent through SMS and email.
What is the Appeal Fee for Form 35?
Before submitting an appeal to the Commissioner of Income Tax (Appeals), the prescribed appeal fee must be paid. The fee is determined based on the total income assessed by the Assessing Officer.
| Total Income Assessed by the AO | Appeal Fee |
|---|---|
| Assessed total income up to Rs. 1 lakh | Rs. 250 |
| Assessed total income exceeding Rs. 1 lakh but not more than Rs. 2 lakh | Rs. 500 |
| Assessed total income above Rs. 2 lakh | Rs. 1,000 |
| Appeals relating to any other case | Rs. 250 |
What is the Time Limit for Filing an Income Tax Appeal?
If you are eligible to file an income tax appeal, it is important to submit it within the prescribed time limit. Missing the deadline may result in losing the right to appeal. In cases relating to penalties or reassessment, the appeal must be filed within 30 days from the date of receiving the income tax notice. However, where the appeal relates to non-deduction of TDS, the 30-day period is calculated from the date on which the TDS payment is made.
What is the Procedure for Filing an Income Tax Appeal?
Filing an appeal against an income tax assessment involves the following steps:
- Submit the appeal application in Form 35.
- After receiving the application, the Commissioner of Income Tax (Appeals) fixes the date, time, and place for the hearing.
- A notice containing the hearing details is issued to both the appellant and the Assessing Officer. During the proceedings, both parties may appear either personally or through an authorised representative.
- The Commissioner of Income Tax (Appeals) may adjourn the hearing whenever necessary.
- The Commissioner also has the authority to conduct enquiries related to the appeal or instruct the Assessing Officer to carry out further investigations and submit a report.
- Before approaching a court, the taxpayer must first exhaust this legal remedy by filing an appeal before the jurisdictional Commissioner of Income Tax (Appeals).
What are the Documents Required for an Income Tax Appeal?
The following documents are required while filing an income tax appeal:
- Form 35
- Copy of the assessment order
- Original demand notice
- Copy of the income tax payment challan
The appeal form must be duly signed and verified by the appropriate person, depending on the type of taxpayer:
- The taxpayer or an authorised representative, in the case of an individual.
- The Managing Director or any other director, in the case of a company.
- The Managing Partner or any other partner (excluding minors), in the case of a partnership firm.
- The authorised representative, in the case of a foreign company.
- The Designated Partner or any other partner, in the case of a Limited Liability Partnership (LLP).
- The Principal Officer, in the case of a local authority.
- The Chief Executive Officer, in the case of a political party.
- The Principal Officer or any member of the association, in the case of an association.
Now that you understand the process of filing Form 35 before the Commissioner of Income Tax (Appeals), you can proceed with an appeal if you disagree with the Assessing Officer’s order regarding exemptions, loss adjustments, additions, or other matters. Ensure that the prescribed appeal fee is paid before submitting Form 35.
Filing an appeal and responding to income tax notices can be complicated, and professional assistance may help simplify the process.
Frequently Asked Questions (FAQs)
Q- What is Form 35 under the Income Tax Act?
Form 35 is the prescribed form used to file an appeal before the Commissioner of Income Tax (Appeals) against certain orders passed by the Income Tax Department. It allows taxpayers to challenge assessment orders, penalty orders, and other appealable orders under the Income Tax Act.
Q- Can Form 35 be revised after submission?
If an error is discovered after filing Form 35, the taxpayer may request correction or amendment as permitted under the applicable provisions and procedures. The exact process depends on the nature of the error and the stage of the appeal.
Q- How can I check the status of my Form 35 appeal?
You can check the status of your appeal by logging into the Income Tax e-Filing portal using your credentials. Under the relevant appeals section, you can view the status, acknowledgements, notices, and other updates related to your filed appeal.
Q- What is Rule 45 of the Income Tax Rules?
Rule 45 prescribes the procedure for filing appeals before the Commissioner of Income Tax (Appeals). It specifies the manner of filing, the information to be provided, the supporting documents required, and the process to be followed while submitting Form 35.
Q- Who can file Form 35?
Any taxpayer who is aggrieved by an appealable order passed by the Income Tax Department may file Form 35 within the prescribed time limit, subject to the provisions of the Income Tax Act.
Q- Is Form 35 required to be filed online?
Yes. Form 35 is generally required to be filed electronically through the Income Tax e-Filing portal in accordance with the prescribed procedure.
Q- What is the time limit for filing Form 35?
In most cases, Form 35 must be filed within 30 days from the date of service of the order or notice being appealed. However, the applicable time limit may vary depending on the nature of the order and the relevant provisions of the Income Tax Act.
Q- What documents are required while filing Form 35?
The following documents are generally required:
- Copy of the assessment or penalty order
- Notice of demand, where applicable
- Statement of facts
- Grounds of appeal
- Supporting documents and evidence
- Proof of payment of the prescribed appeal fee, if applicable
Q- Is there any fee for filing Form 35?
Yes. The appeal fee depends on the assessed income and the applicable provisions of the Income Tax Act. The prescribed fee must generally be paid before filing the appeal.
Q- Can additional evidence be submitted with Form 35?
Yes. Additional evidence may be submitted in accordance with the applicable rules and with the permission of the appellate authority, subject to the prescribed conditions.
Q- Can a taxpayer withdraw an appeal filed through Form 35?
Yes. In appropriate cases, a taxpayer may request withdrawal of an appeal, subject to the applicable legal provisions and the approval of the appellate authority.
Q- What happens after Form 35 is filed?
After the appeal is filed, the Commissioner of Income Tax (Appeals) examines the documents, may issue notices for hearing or additional information, and passes an appellate order after considering the facts and submissions made by both the taxpayer and the Income Tax Department.
Q- Can an authorized representative file Form 35 on behalf of a taxpayer?
Yes. A Chartered Accountant, Advocate, or other authorized representative may file and represent the taxpayer during appellate proceedings, provided they are duly authorized under the Income Tax Act.
Q- Can Form 35 be filed against every Income Tax order?
No. Form 35 can only be filed against orders that are specifically appealable under the Income Tax Act. Before filing an appeal, taxpayers should confirm that the order is eligible for appeal.
Q- Why should taxpayers seek professional assistance while filing Form 35?
Appeal proceedings require proper drafting of the statement of facts, grounds of appeal, and supporting evidence. Professional assistance helps ensure accurate filing, compliance with legal requirements, and effective representation before the appellate authority.