Procedure for Filing Appeal to Appellate Tribunal (ITAT) [Sections 253(3), (3A), (4), (5) & (6)]

The Income Tax Appellate Tribunal (ITAT) is the second appellate authority under the Income Tax Act, 1961. Below is a structured guide to filing an appeal before ITAT under Sections 253(3) to (6).

1. Who Can File an Appeal?

• Assessees(against CIT(A)’s order) – Section 253(1)
• Income Tax Department(against CIT(A)’s order) – Section 253(2)

2. Time Limit for Filing Appeal [Section 253(3)]

Late Filing:

• Assessee must file a condonation petitionexplaining the delay (e.g., medical emergency, natural disaster).
• ITAT has discretionto accept or reject the delay.

3. Form & Documents Required [Section 253(4) & (5)]

(A) For Assessees

• Form 36(Memorandum of Appeal)
• Documents to Attach:
  • Copy of CIT(A)’s order
  • Copy of AO’s order(if applicable)
  • Grounds of appeal(clearly stated)
  • Proof of tax payment(if demand disputed)

(B) For Income Tax Department

• Form 36A(Departmental Appeal)
• Requires approvalfrom the Principal Chief Commissioner (PCCIT).

Filing Mode

• E-filing(mandatory for Department)
• Physical filing(allowed for assessees in some cases)

4. Fee for Filing Appeal [Section 253(6)]

Exemptions:

• Department appeals(no fee).
• Charitable trusts(if income exempt).

5. Procedure After Filing [Section 253(3A)]

1. Scrutiny by Registry
   • ITAT checks for completeness(correct form, fees, documents).
   • If incomplete, defective noticeissued (must be rectified in 15 days).
2. Admission & Hearing
   • If compliant, appeal is numbered & listed for hearing.
   • Noticesent to both parties (assessee & Department).
3. Final Disposal
   • ITAT may:
     • Confirm, modify, or annulCIT(A)’s order.
     • Remandthe case back to AO/CIT(A) for fresh adjudication.

6. Key Judicial Precedents

1. CIT vs. Scindia Steam Navigation (1961)– ITAT is the final fact-finding authority.
2. Hindustan Steel Ltd. vs. CIT (1972)– ITAT can remand cases for fresh inquiry.
3. CIT vs. Anjum M.H. Ghaswala (2001)– ITAT cannot enhance an assessment.

7. Practical Considerations

✅ Stay on Demand: File a stay application along with the appeal to avoid recovery.

✅ Cross-Appeals: If both assessee & Department appeal, ITAT hears them together.

✅ Departmental Appeals: Must meet monetary limits (₹50 lakh tax effect for FY 2023-24).

Summary Table: ITAT Appeal Procedure