Income Tax Appeals in India: CIT(A), ITAT, High Court and Deadlines

If you disagree with an Indian income tax order, the law gives you a ladder of remedies: a first appeal to the Commissioner (Appeals), a second appeal to the Income Tax Appellate Tribunal (ITAT), and on questions of law the High Court and the Supreme Court. Deadlines are short, and a missed date can cost the whole remedy. This guide explains income tax appeals in India for NRIs and foreign-owned companies, with the forms, time limits and alternatives that apply today.

How do income tax appeals in India work?

The structure is unchanged by the new Act. The CBDT's FAQs describe it as the Assessing Officer, then the Joint Commissioner (Appeals) or Commissioner (Appeals), then the ITAT, then the High Court and the Supreme Court. The limitation periods are the same under both Acts. The 2025 Act groups the provisions as first appeals (sections 356 to 360), the Tribunal (361 to 364) and the courts (365 to 368), and the 1961 Act continues for proceedings on earlier years. A pending appeal on 1 April 2026 continues under the 1961 Act with no new appeal, and an appeal filed after that date for AY 2026-27 or earlier is also decided under the 1961 Act. A right that had already expired before the new Act is not revived, although the old condonation-of-delay route may be available if you show you could not file in time despite due diligence.

Step by step: filing the first appeal

1. Read the order and the notice of demand. Note the date of service, the tax year, the DIN and each addition.
2. Check the pre-conditions. The CBDT's Form 99 FAQ says filing is subject to payment of tax due on the income returned where a return was filed, or advance tax where it was not, and deposit of the tax borne by the deductor in appeals about payments to non-residents.
3. Draft the grounds. In Form 99 each ground is limited to 100 words, and you also file a statement of facts. Group grounds by issue.
4. Attach evidence. Additional documentary evidence is allowed only in line with the rule on additional evidence, and you must link each document to a ground.
5. State any delay. Select that there is a delay and upload a separate statement of the reasons for condonation.
6. Pay the appeal fee and note the details in the form.
7. Verify and submit online. The appeal cannot be revised once filed and verified, so review it carefully.
8. Track the hearing. First appeals also run through the faceless framework.

If the same question of law is pending before the High Court or Supreme Court in your case, you can give a declaration in Form 117 under the repetitive-appeal provisions (sections 375 and 376 of the 2025 Act replace sections 158A and 158AB).

Second appeal to the ITAT

Form 115 (Form 36 under the 1961 Act) is filed within two months from the end of the month in which the order is communicated. It has parts for the appellant and respondent, the appeal details, the amount disputed, the grounds with the tax effect for each, and the filing details, including the delay and the fee. It can be filed on the Income Tax e-Filing portal or the ITAT e-filing portal, and it cannot be revised, though additional grounds may be raised before the Tribunal. The ITAT's powers include confirming, reducing, enhancing or annulling an assessment, calling for remand reports, rectifying mistakes and granting stay subject to conditions.

Other routes and what happens to the demand

• Dispute Resolution Panel (DRP): for eligible assessees receiving a draft assessment order (section 144C of the 1961 Act, section 275 of the 2025 Act), such as foreign companies and transfer pricing cases.
• Dispute Resolution Committee (DRC): a settlement route (section 245MA of the 1961 Act, section 379 of the 2025 Act) where the variation is lower than Rs 10 lakh and the returned income lower than Rs 50 lakh, with power to waive penalty and prosecution. A draft order can fall within both routes, subject to eligibility.
• Mutual agreement procedure (MAP): for treaty disputes, a resident assessee applies on Form 55 (Form 34F earlier). The Department has published consolidated MAP guidance for 2026.
• Rectification: for a mistake apparent from the record (see the rectification guide).
• Penalty appeals: an order imposing a penalty is also appealable; see penalties and interest and the scrutiny process.

An appeal does not wipe out the demand. Under the 2025 Act, a demand is deemed valid until the last appellate authority or court disposes of the matter, so ask your CA about paying under protest or applying for a stay. Interest of 1% a month runs on an unpaid demand after 30 days.

Why an Indian Chartered Accountant or counsel matters here

An appeal is a one-shot pleading. Each ground is capped at 100 words, the statement of facts and evidence must line up, and a filed appeal cannot be revised. A CA or tax counsel in India will also check the pre-conditions, such as payment of tax on returned income, and the exact date of service before counting the 30 days. Foreign-based owners usually authorise a representative, because the filing must be verified and the hearings follow Indian working days.

A worked example

An assessment order for AY 2025-26 is served on 10 January 2027 with a notice of demand of Rs 18 lakh. Form 35 is due within 30 days, by 9 February 2027, after tax on the returned income is paid. The Commissioner (Appeals) passes an order that is communicated on 12 July 2027. Form 36 for the ITAT is due within two months from the end of July, so by 30 September 2027. Both filings use the 1961 Act forms because AY 2025-26 began before 1 April 2026.

Documents and information you need

• The assessment or penalty order and the notice of demand, with proof of the date of service
• Proof of payment of the tax on returned income, and any stay application filed
• The return, computation, books and evidence relied on at assessment
• A statement of facts, numbered grounds and a list of additional evidence
• Authority for your representative, such as the portal authorisation or a power of attorney

Keep these in a single bundle, because the same papers feed the second appeal and any U.S. or Canadian amendment.

Mistakes to avoid

• Counting 30 days from the wrong date, such as the date of the order rather than service of the demand
• Filing without paying the tax on returned income
• Putting new facts into the grounds without the evidence
• Assuming a pending appeal suspends interest or collection
• Forgetting that treaty issues need MAP and a Form 41 or 10F file

How we can help

From Aurora, Illinois, we assess what an Indian appeal outcome means for your U.S. and Canadian returns and credits. Your Indian Chartered Accountant or counsel drafts and files the appeal and represents you. We do not appear before the Indian tax authorities. See cross-border tax and IRS and state tax representation. Browse the Notices, Penalties and Disputes hub.

Frequently asked questions

General information only. It is not tax, legal, accounting or immigration advice for your situation, and rules change; confirm the current rules with the official source or a licensed professional in the relevant country.