Income Tax Appeal to Commissioner (Appeals): Procedure, Form 99, Time Limit and Fees

A taxpayer, deductor or collector who is aggrieved by an appealable income-tax order may have a statutory right to challenge that order before the Joint Commissioner of Income-tax (Appeals) or Commissioner of Income-tax (Appeals), as applicable. This guide explains the current first-appeal framework in India, the filing process, limitation period, appeal fee, hearing procedure, additional evidence and the powers of the appellate authority.

Appealable orders before the first appellate authority

Chapter XVIII of the Income-tax Act, 2025 contains the current law on appeals, revisions and alternate dispute resolution. Section 356 deals with appealable orders before the Joint Commissioner (Appeals), while section 357 specifies appealable orders before the Commissioner (Appeals). The correct appellate authority therefore depends on the nature of the order and the authority that passed it.

Section 357 permits an assessee, deductor or collector aggrieved by specified orders to appeal to the Commissioner (Appeals). The provision covers, among other specified matters, certain assessment and reassessment orders, specified intimations and adjustments, orders affecting refunds, orders treating a person as agent of a non-resident, and orders imposing or enhancing penalties. Whether a particular order is appealable must be checked against the applicable statutory provision and the order itself.

Under the earlier Income-tax Act, 1961, the broadly corresponding provisions included sections 246 and 246A. Those provisions may remain relevant to proceedings preserved by the transition and savings provisions of the Income-tax Act, 2025.

How to file the appeal: Form No. 99

Section 358 of the Income-tax Act, 2025 governs the form of appeal and limitation. Rule 167 of the Income-tax Rules, 2026 prescribes Form No. 99 for an appeal to the Joint Commissioner (Appeals) or Commissioner (Appeals). Form No. 99 replaces the earlier Form No. 35 used under section 249 of the Income-tax Act, 1961 and Rule 45 of the Income-tax Rules, 1962.

The appeal is furnished electronically through the prescribed income-tax e-filing system. Depending on the applicable verification requirement, electronic filing is completed using a digital signature or electronic verification code. The appellant should keep the order appealed against, notice of demand where applicable, details of taxes and appeal fee paid, statement of facts, grounds of appeal and supporting documentary material ready for filing.

Official filing and account services are available through the Income Tax Department e-Filing Portal.

Time limit for filing an income tax appeal

Under section 358 of the Income-tax Act, 2025, the general limitation period for a first appeal is 30 days. For an appeal relating to an assessment or penalty, the period ordinarily runs from the date of service of the notice of demand. In other cases, the relevant statutory starting point depends on the nature of the order and its service or communication.

Condonation of delay

An appeal filed after the prescribed period may be admitted where the appellate authority is satisfied that the appellant had sufficient cause for not presenting the appeal within time. A delayed appeal should therefore clearly explain the period of delay and the facts constituting sufficient cause, supported by appropriate evidence wherever available. Condonation is discretionary and should not be assumed merely because an appeal has been filed.

Appeal filing fees

Section 358 prescribes the fee payable with an appeal to the Joint Commissioner (Appeals) or Commissioner (Appeals). The fee structure is:

Evidence and particulars of payment should be retained and furnished as required in the electronic appeal form.

Payment of tax before admission of appeal

The statutory conditions for admission of an appeal should be checked before filing. Broadly, where a return has been filed, tax due on the returned income must be paid. Where no return has been filed, the Act contains a condition linked to the advance tax payable, subject to the statutory power of the appellate authority to grant relief from that condition for good and sufficient reason where the law permits. These admission requirements are distinct from payment or recovery of the disputed demand arising from the order under appeal.

Filing an appeal does not by itself mean that recovery of the disputed demand is automatically stayed. Where recovery is disputed, the taxpayer should separately consider the applicable statutory and administrative procedure for seeking stay or other relief.

Grounds of appeal and statement of facts

The quality of the grounds of appeal and statement of facts can materially affect presentation of the case. Each disputed issue should normally be identified separately and expressed clearly and concisely.

• State the material facts accurately and in a logical sequence.
• Identify each addition, disallowance, adjustment, penalty or other disputed finding.
• Use a separate ground for each independent legal or factual issue.
• Raise jurisdictional and natural-justice objections where genuinely applicable.
• Specify the relief sought without using vague or argumentative grounds.
• Ensure that figures, dates and references agree with the assessment order, demand notice and supporting records.

Legal grounds that go to jurisdiction or validity should be considered carefully. The appellant should also distinguish between documents already forming part of the assessment record and material sought to be introduced for the first time in appeal.

Procedure and hearing of the appeal

Section 359 of the Income-tax Act, 2025 governs the procedure in appeal. The appellate authority may give notice of hearing, hear the appellant or an authorised representative, adjourn proceedings where justified, make further inquiry, or direct the Assessing Officer to make an inquiry and report. Current income-tax administration extensively uses electronic proceedings, and appellants should monitor the registered e-filing account, email address and mobile contact details for notices and communications.

The appellant should respond within the time stated in each notice. Written submissions should address the grounds of appeal issue by issue, identify the supporting evidence, and explain the relevant statutory provisions and judicial authorities relied upon. Where an electronic or video hearing facility is provided or requested in accordance with the applicable procedure, the appellant should follow the instructions communicated through the portal.

Additional grounds and additional evidence

Additional grounds

The appellate framework permits consideration of an additional ground in appropriate circumstances. An appellant seeking to raise a ground that was omitted from the original appeal should explain why it was not included earlier and why it should be admitted. The power is intended to enable proper adjudication, but admission depends on the governing provision and facts of the case.

Additional evidence

As a general practice, the appeal should be decided on the record relevant to the proceedings below, subject to the statutory and procedural rules governing additional evidence. Where an appellant seeks to produce new evidence at the appellate stage, the conditions prescribed under the applicable Income-tax Rules must be satisfied. The appellate authority may also call for further information or inquiry where necessary. Principles of natural justice ordinarily require an appropriate opportunity to respond where new material is relied upon adversely.

Powers of the Joint Commissioner (Appeals) and Commissioner (Appeals)

Section 360 of the Income-tax Act, 2025 defines the principal powers of the first appellate authorities. Depending on the appeal, the authority may confirm, reduce, enhance or annul an assessment. In specified circumstances involving a best judgment assessment under section 271, the Commissioner (Appeals) may set aside the assessment and refer the matter back to the Assessing Officer for a fresh assessment. In a penalty appeal, the appellate authority may confirm or cancel the penalty or vary it by enhancing or reducing it. In other cases, it may pass such order in the appeal as it thinks fit within the law.

An assessment or penalty cannot be enhanced, and a refund cannot be reduced, without giving the appellant a reasonable opportunity to show cause. The appellate authority may also consider and decide a matter arising out of the proceedings in which the appealed order was passed even if that matter was not specifically raised by the appellant, subject to the Act and principles of natural justice.

Appellate order and further remedy

The appellate order should deal with the issues requiring determination and communicate the decision in accordance with the Act and applicable electronic procedure. If an appellant or the Income Tax Department remains aggrieved by an appealable first-appellate order, a further appeal may lie to the Income Tax Appellate Tribunal subject to the statutory conditions, limitation period and procedure applicable to Tribunal appeals.

Transition from the Income-tax Act, 1961

The Income-tax Act, 2025 repealed the Income-tax Act, 1961 with effect from April 1, 2026, but its repeal and savings provisions preserve specified rights, liabilities, proceedings and actions relating to the earlier law. Consequently, an assessment, appeal, revision or other proceeding connected with an earlier period cannot safely be analysed only by replacing an old section number with a new one. The transition provision and the particular order should be examined to determine which Act, Rules and form apply.

Official income tax appeal resources

• Income Tax Department e-Filing Portal
• Income-tax Act, 2025, Rules, Forms and official guidance
• Income-tax Act, 2025 as amended by Finance Act, 2026
• Income Tax Forms, 2026

To know more details and to avail our services, please e-mail contact@businesswonder.com.

Important: This article is a general informational guide. Appeal rights, limitation and procedure depend on the exact order, date of service, transition provisions and facts. Taxpayers should verify the current statutory text, Rules, notifications and portal requirements applicable to their case before filing.

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