Last reviewed: 13 November 2026. When an assessment, reassessment, penalty or intimation goes against you, the appeal is the route to have it decided by an authority independent of the assessing officer. The first appeal lies to the Commissioner (Appeals) or Joint Commissioner (Appeals), and then to the Income Tax Appellate Tribunal. Deadlines are short, and the first appeal is where facts and evidence are best placed on record.
Part of our income-tax notice series. For every notice type, the time limits and the appeal route, start with the complete guide to income-tax notices.
The appeal ladder
| Stage | Forum | Form and time limit |
|---|---|---|
| First appeal | Commissioner (Appeals) through the National Faceless Appeal Centre, or Joint Commissioner (Appeals) for specified cases | Form 35, within 30 days of service of the order or notice of demand |
| Second appeal | Income Tax Appellate Tribunal (ITAT) bench | Form 36, within two months of receipt of the CIT(A) order |
| Third appeal | High Court, on a substantial question of law | Within 120 days of receipt of the ITAT order |
| Final | Supreme Court | Special leave petition |
For appeals relating to assessment years up to 2026-27, these sections of the 1961 Act continue to apply under section 536 of the Income-tax Act, 2025. The Department itself appeals only where the tax effect exceeds the monetary limits set by CBDT (₹60 lakh for ITAT, ₹2 crore for High Courts and ₹5 crore for the Supreme Court under Circular 9/2024, subject to exceptions).
Orders you can appeal against
- Assessment and reassessment orders (sections 143(3), 144, 147).
- Intimations under section 143(1) with adjustments.
- Penalty orders, rectification orders under section 154 that enhance tax or refuse the claim.
- Orders levying interest or fees, and orders on TDS defaults (sections 200A, 201).
Filing a first appeal well
- Grounds of appeal. Each addition as a separate ground, plus legal grounds such as limitation, jurisdiction and breach of natural justice.
- Statement of facts. A clear narrative of what happened in the assessment, what was submitted and what was ignored.
- Tax on returned income. Section 249(4) requires the tax on returned income to be paid before the appeal is admitted.
- Additional evidence. Evidence not filed before the officer can be admitted only within rule 46A, so explain why it was not filed earlier.
- Stay. File the stay application under section 220(6) with the assessing officer immediately after the appeal.
Late appeals and condonation
An appeal filed after 30 days must be accompanied by an application for condonation of delay with reasons and supporting evidence. Appellate authorities generally take a liberal view of genuine reasons such as illness, non-receipt of the order or a mistake by the counsel, but delay must be explained for the whole period.
Stay of demand and the 2026 position
Stay pending first appeal has been granted under CBDT's Office Memorandum of 31 July 2017 on payment of 20% of the disputed demand as the standard rate. Budget 2026 announced a reduction to 10% of the core tax demand and removed interest on penalty during the first appeal for the new framework; check the current CBDT instruction when applying. Courts have held that the officer must consider the merits and hardship in each case and cannot insist on a fixed percentage mechanically. Once the CIT(A) decides, stay before the ITAT is sought from the Tribunal itself. Our page on demands and rectification covers recovery and refund adjustment.
Illustrative example
An assessment order for AY 2025-26 served on 20 October 2026 adds ₹42,00,000 of cash deposits. The appeal in Form 35 is due by 19 November 2026. Tax on returned income was already paid. The grounds challenge the addition on facts (sale of agricultural produce supported by mandi receipts and land records) and on breach of natural justice (no show cause notice before the addition). A stay application is filed with the officer on the same day, offering 20% of the disputed tax with a request to reduce it to 10% in line with the Budget announcement.
Frequently asked questions
What is the time limit to file an income-tax appeal to CIT(A)?
Thirty days from the date of service of the order or notice of demand, in Form 35 on the e-filing portal. A late appeal needs an application for condonation of delay.
What is the time limit to appeal to the ITAT?
Two months from the date on which the CIT(A) order is received, in Form 36 with the prescribed fee.
Do I have to pay the demand before filing an appeal?
You must pay the tax due on the returned income before the first appeal is admitted (section 249(4)). The disputed demand need not be paid to file, but recovery can continue unless you obtain a stay under section 220(6).
Can I file new evidence before the CIT(A)?
Only within rule 46A, for example where the officer refused to admit it or you were prevented by sufficient cause. Explain why the evidence was not filed during the assessment.
Which law applies to appeals filed in 2026 for old years?
For assessment years up to 2026-27, the appeal provisions of the Income-tax Act, 1961 continue to apply under section 536 of the Income-tax Act, 2025.
We draft the grounds and statement of facts, file the appeal and the stay application, and represent you before the CIT(A) and ITAT. The outcome rests with the appellate authority; our work is to put a complete, well-argued case before it.
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This article is for general information and does not constitute advice on any specific case. Sources: the Income-tax Act, 1961 (which continues to govern assessment years up to 2026-27 under section 536 of the Income-tax Act, 2025), the Income-tax Act, 2025, the Finance Act, 2026 and the CBDT instructions and circulars cited in the text. Time limits run from the date of service of each notice or order; confirm the current position and the exact dates in your notice before acting. Firm details: Somesh Chandak & Associates, Chartered Accountants, Unit 119, 1st Floor, Centura Square IT Park, SG Barve Road, Wagle Estate, Thane West 400604. FRN 158694W.