Form of Appeal and Limitation [Section 249 and Rules 45 & 46]

Under Section 249 of the Income Tax Act, 1961, along with Rules 45 and 46 of the Income Tax Rules, the procedure for filing an appeal before the Commissioner of Income Tax (Appeals) [CIT(A)] is governed. Below is a structured breakdown of the key provisions:

1. Who Can File an Appeal?

An appeal under Section 249 can be filed by:

• Taxpayersaggrieved by:
  • Assessment orders(e.g., under Sections 143(3), 144, 147).
  • Penalty orders(e.g., under Sections 271, 271A, 271B).
  • Rectification orders(under Section 154).
  • Reassessment orders(under Section 147).
• Deductorsdisputing TDS liability (under Section 248).

2. Form & Procedure for Filing Appeal

1. Form of Appeal (Rule 45)

• • Form 35is prescribed for appeals before CIT(A).
  • Contents of Form 35:
    • Details of the order appealed against(date, section, demand notice).
    • Grounds of appeal(must be clear and specific).
    • Supporting documents(copy of order, tax payment proof, evidence).

1. Appeal Fee (Section 249(1))

• • The fee depends on the assessed income:
    • ₹250if income ≤ ₹1,00,000.
    • ₹500if income > ₹1,00,000 but ≤ ₹2,00,000.
    • ₹1,000if income > ₹2,00,000 .

1. Payment of Tax Before Appeal (Section 249(4))

• • Mandatory condition: The appellant must pay tax dueon the returned income.
  • Exception: If no return was filed, advance tax payablemust be deposited.
  • Relief: CIT(A) may waive this condition for sufficient cause.

3. Time Limit for Filing Appeal (Section 249(2))

• 30 daysfrom the date of:
  • Payment of tax(for appeals under Section 248).
  • Service of demand notice(for assessment/penalty orders).
• Excluded Period: If an application for reopening (Section 146) is pending, the delay is condoned .

Late Appeals (Section 249(3))

• CIT(A) may admit delayed appealsif sufficient cause is shown (e.g., illness, natural calamities).
• Example: A taxpayer hospitalized during the appeal period can seek condonation .

4. Rule 46 – Additional Evidence

• General Rule: No new evidence can be submitted unless permitted by CIT(A).
• Exceptions:
  • AO refused to admit evidencedespite opportunity.
  • Evidence was not accessible earlier.
  • CIT(A) deems it necessary for justice.

5. Key Judicial Precedents

• CIT vs. Suresh Kumar (2017): Procedural lapses (e.g., delay) can be excused with valid reasons .
• CIT vs. Gujarat State Fertilizers (2018): Appeals must be filed promptlywith clear grounds .

Summary Table: Key Aspects of Section 249