There is no need to be scared, IF YOU HAVE NOT EVADED ANY TAX.
So, let us understand the process of how to go into option of appeal? There is only one way you can go into appeal; when the order passed by the department is prejudicial to you and you want to challenge the same.
There are two things that may happen when you file your Return of Income:
Case 1. Either the intimation of 143(1) will come and there will be no demand or adjustment to return data you filed, or
Case 2. There will be some adjustment or demand raised by the CPC.
If there is no adjustment (Case 1) then its ok, but if there is an adjustment or demand raised then you will be asked to accept or reject the demand. After considering your reply they will send the final intimation order under section 143(1):
Either they will:
Accept your reply and remove the demand, or
Will pass order with the proposed adjustment as earlier.
Now what to do?
Either go for Revised Return, or
Go for Rectification u/s 154 (mostly by opting to Re-Process the return), in which again they may not consider your facts and send the same order again, or
Go for appeals.
There is one more way you land up to appeals which is when, your case had been selected for scrutiny and the adjustments the AO has made in his order is what you feel is prejudicial to you.
Then you enter appeals.
There are also other orders that land you to appeal. Also, remember there are proper timeline to which you need to stick to, in order to file appeal on time. (For this consult a CA)
Appeal Hierarchy in Income Tax
1. Appeal to CIT (A): An appeal to the Commissioner (Appeal) against any order which is appealable is to be presented within 30 days from the date specified. However, the commissioner (Appeal) may admit an appeal even after the expiry of the said period of 30 days, if he is satisfied that the appellant had sufficient cause for not presenting the appeal within the specified time. It can be filed in prescribed form (Form No. 35)
2. Appeal to ITAT: Every appeal to the Appellate Tribunal has to be filed within 60 days from the date on which the order sought to be appealed against is communicated to the assessee. It can be filed in prescribed form (Form No. 36)
3. Appeal to High court: The principal chief commissioner or chief commissioner or principal commissioner or commissioner or an assessee aggrieved by any order passed by the Appellate Tribunal may file an appeal within 120 days to the High Court only if there is Question of Law. Appeal form, fees & procedure governed by Code of Civil Procedure, 1908 High court has the power to condone the delay and admit an appeal after the expiry of the period of 120 days, if it is satisfied that there was sufficient cause for not filing the appeal within that period.
4. Appeal to Supreme court: Appeal against High court order can be filed within 90 days. Appeal form, fees & procedure governed by Code of Civil Procedure, 1908.
Note: No Right of Appeal against Following Orders under Income Tax Act, 1961:
There Is No Right of Appeal against Following Orders
· Order Of Income Tax Settlement Commission
· Order Of Income Tax Appellate Tribunal on “Question of FACT”
· Order Under Section 264 of Income Tax Act, 1961
· Order Under Section 234A, 234B, 234C of Income Tax Act, 1961
· Order of Authority for Advance Ruling
We hope the above blog was helpful in enhancing your knowledge on the matter. In case of any queries feel free to get in touch with our team of experts.
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Well drafted!! Keep up the commendable work💯