Income Tax Appeals: CIT(A), ITAT, High Court and Supreme Court (Income-tax Act, 2025)

Under the Income-tax Act, 2025, an income tax appeal climbs a four-step ladder: the Commissioner (Appeals) or Joint Commissioner (Appeals), then the Appellate Tribunal (ITAT), then the High Court, then the Supreme Court. The first appeal must be filed within 30 days (section 358(3)) in Form No. 99. The Tribunal appeal is due within two months from the end of the month of communication (section 362(3)), in Form No. 115. The High Court appeal is due within 120 days and needs a substantial question of law (section 365).

This guide explains who can appeal where, the fees, the time limits, the pre-deposit rule, the Tribunal's stay power and the forms. Every figure is taken from sections 356 to 365 and 367 of the Act (as amended by the Finance Act, 2026) and rules 167, 191, 192 and 193 of the Income-tax Rules, 2026. Last reviewed against that text on 10 November 2026.

What are the stages of an income tax appeal?

Which orders can be appealed to the Commissioner (Appeals)?

An assessee, a deductor or a collector can appeal to the Commissioner (Appeals) against the orders listed in section 357. The common ones are:

• an intimation under section 270(1) or 399(1) where you object to the adjustments made in it (section 357(c));
• an assessment, reassessment or recomputation order under section 279 or 283 (section 357(e));
• an order under section 287 or 288 that enhances the assessment or reduces a refund, or refuses your claim under those sections (section 357(g));
• an order imposing or enhancing a penalty under Chapter XXI (section 357(n));
• an order against you where you deny any liability to be assessed (section 357(b)).

Section 357 has more clauses, including orders treating a person as agent of a non-resident (clause h) and orders under sections 313, 315, 398, 431 and 434. An assessment made in line with the Dispute Resolution Panel's directions does not come here. It goes to the Tribunal under section 362(1)(d).

When does the appeal go to the Joint Commissioner (Appeals) instead?

Section 356 gives a parallel route to the Joint Commissioner (Appeals) for orders of an Assessing Officer below the rank of Joint Commissioner. The list is similar: intimations, assessment orders, penalty orders and orders under sections 287 and 288. There is one exclusion. No appeal lies to the Joint Commissioner (Appeals) if the order was passed by, or with prior approval of, an income-tax authority above the rank of Deputy Commissioner (section 356(2)). The Board, or an authority it authorises, can also transfer pending appeals between the two, and the appellant must be given an opportunity of being reheard (section 356(3) and (4)).

What is the time limit and fee for the first appeal?

The appeal must be presented within 30 days, counted from the date of service of the notice of demand (for assessment or penalty appeals), or from the date the intimation of the order is served (any other case) (section 358(3)). If you applied under section 440(1) and it was rejected, the time between your application and service of the rejection order is excluded (section 358(4)). A late appeal can be admitted if you show sufficient cause (section 358(5)).

Total income computed by the Assessing Officer	Fee for appeal to CIT(A) / JCIT(A) (section 358(2))	Fee for appeal to ITAT (section 362(6))
Rs 1,00,000 or less	Rs 250	Rs 500
More than Rs 1,00,000 up to Rs 2,00,000	Rs 500	Rs 1,500
More than Rs 2,00,000	Rs 1,000	1% of assessed income, maximum Rs 10,000
Subject matter not covered by the income slabs	Rs 250	Rs 500

Which Act applies to an appeal for an older tax year?

The sections in this guide govern appeals for tax years beginning on or after 1 April 2026. Section 536(2)(c) says the repealed Income-tax Act, 1961 continues to apply to proceedings pending on 1 April 2026, and to proceedings started on or after that date (including appeals) for any tax year beginning before 1 April 2026. Those proceedings follow the procedure of the repealed Act. Section 536(2)(e) adds that an appeal already pending before an authority, the Tribunal or a court on that date is continued and disposed of as if the 2025 Act had not been enacted.

Section 536(2)(k) closes the other door: if the time to appeal under the repealed Act had already expired on or before commencement, the longer period or condonation power in the 2025 Act does not revive the right. So the first step on any file is to note the tax year, not the date of the order. Check the forms and time limits for older years against the repealed Act's provisions, not against the tables above.

Do you have to pay tax before you appeal?

Yes, in part. Section 358(6) says the appeal is not admitted unless, at the time of filing:

• if you filed a return, you have paid the tax due on the income you returned; or
• if you filed no return, you have paid an amount equal to the advance tax that was payable.

The appellate authority can exempt you from the second condition on your application, for reasons recorded in writing (section 358(7)). The disputed demand itself is not required to be paid to file the first appeal. For a stay of recovery, see the Tribunal stay section below.

How is Form No. 99 filed and what happens at the hearing?

Rule 167 requires Form No. 99, filed electronically. If your return was filed under digital signature, the form is filed under digital signature too. Otherwise it is filed with an electronic verification code. It is verified by the person authorised to verify your return under section 265 (rule 167(3)). Documents that go with it are furnished the same way (rule 167(4)).

At the hearing (section 359):

• the authority fixes a date and place and gives notice to you and the Assessing Officer;
• you may appear in person or through an authorised representative, and the Assessing Officer may also be heard;
• the authority may adjourn the hearing, call for further inquiry, or let you raise a ground not in the form if the omission was not wilful or unreasonable;
• the order must be in writing, with the points for determination, the decision and the reasons;
• where possible, the appeal is to be decided within one year from the end of the financial year in which it was filed (section 359(5)).

Can you produce new evidence in the first appeal?

Only in limited cases. Rule 192(1) lets you produce evidence not placed before the Assessing Officer only where:

• the Assessing Officer refused to admit evidence that should have been admitted;
• you were prevented by sufficient cause from producing evidence the Assessing Officer asked for;
• you were prevented by sufficient cause from producing evidence relevant to a ground of appeal before the Assessing Officer; or
• the Assessing Officer passed the order without giving enough opportunity to adduce evidence.

The authority must record its reasons in writing for admitting the evidence, and the Assessing Officer must get a reasonable opportunity to examine it or rebut it (rule 192(2) and (3)).

What can the Commissioner (Appeals) decide?

Appeal against	Powers (section 360(1))
Assessment order	Confirm, reduce, enhance or annul
Assessment under section 271	The Commissioner (Appeals) may also set aside and send back for a fresh assessment
Penalty order	Confirm or cancel, or vary to enhance or reduce the penalty
Any other order	Pass such orders as he thinks fit

Two points work against the appellant. Enhancement of an assessment, a penalty, or a reduction in refund is allowed only after a reasonable opportunity to show cause (section 360(2)). And the authority may decide any matter arising out of the proceedings, even one you did not raise (section 360(3)). An appeal can therefore end worse than it began.

Who can appeal to the Appellate Tribunal (ITAT), and when?

An assessee can appeal to the Tribunal against an order of the Commissioner (Appeals) or Joint Commissioner (Appeals). Section 362(1) also covers specified orders of a Principal Commissioner or Commissioner (for example under sections 377, 439 and 465), assessment orders passed in line with Dispute Resolution Panel directions, and orders under section 234(4). The department can appeal too: a Principal Commissioner or Commissioner who objects to a first-appeal order can direct the Assessing Officer to appeal (section 362(2)).

• Time limit: two months from the end of the month in which the order is communicated (section 362(3)). The Tribunal can condone delay for sufficient cause (section 362(5)).
• Form: Form No. 115 for the appeal and Form No. 116 for a memorandum of cross-objections, signed by the person who verifies the return (rule 193).
• Cross-objections: if the other side appeals, you can file cross-objections within 30 days of receiving the notice, even if you did not appeal yourself (section 362(4)). No fee is payable for the department's appeal or for cross-objections (section 362(7)).
• Stay application fee: Rs 500 (section 362(8)).

How does a Tribunal stay of demand work?

While the Tribunal hears your appeal, it can stay recovery of the demand (section 363(6) to (8)):

Point	Rule
Maximum first stay	180 days from the date of the order
Condition	Deposit at least 20% of the tax, interest, fee, penalty or other sum payable, or furnish security for the same amount
Extension	Only on your application, with the 20% condition met, and only if the delay in disposing of the appeal is not your fault
Outer limit	Original and extended stay together cannot exceed 365 days
If not disposed of in time	The stay stands vacated, even if the delay is not attributable to you

The Tribunal aims to decide each appeal within four years from the end of the financial year in which it was filed, where possible (section 363(5)). It can rectify a mistake apparent from the record within six months from the end of the month of the order, on an application with a fee of Rs 50 (section 363(2) and (4)). Orders on appeal are final, subject to section 365 (section 363(11)).

How is the Tribunal constituted?

A Bench has one Judicial Member and one Accountant Member (section 364(2)). The President, or a member authorised by the Central Government, can sit singly on a case where the total income computed by the Assessing Officer does not exceed Rs 50 lakh (section 364(3)). The President can also form a Special Bench of three or more members for a particular case (section 364(4)). If members of a Bench differ, the majority view prevails, and an equal split is referred to other members for hearing on the point (section 364(5)).

Section 361(2) is shown in the Act with a substitution by the Tribunals Reforms Act, 2026, effective from a date yet to be notified. It changes how appointment and service terms of members are governed. It does not affect how you file an appeal.

When can you go to the High Court?

Only on a substantial question of law (section 365(1)). Either the tax department (Principal Chief Commissioner, Chief Commissioner, Principal Commissioner or Commissioner) or the assessee can appeal against a Tribunal order, within 120 days of receiving the order, by a memorandum of appeal that precisely states the question (section 365(2)). Late filing can be admitted for sufficient cause (section 365(3)).

If the High Court is satisfied that such a question arises, it formulates it, and the appeal is heard on that question. The court can still hear another substantial question for reasons recorded, and the other side can argue that the formulated question does not arise (section 365(4) to (6)). Once the judgment is delivered, the Assessing Officer gives effect to it on the basis of a certified copy (section 365(10)).

When can you go to the Supreme Court?

Section 367 allows an appeal to the Supreme Court from a High Court judgment in an appeal arising from a Tribunal order only where the High Court certifies the case to be fit for appeal. Without that certificate, this route under the Act is not available.

Worked example 1: appeal fees

Assumptions: tax year 2026-27 assessments, fees as in sections 358(2) and 362(6).

	Meena (salaried)	Ravi (trader)
Total income computed by Assessing Officer	Rs 1,80,000	Rs 8,00,000
Fee to CIT(A)	Rs 500 (income above Rs 1,00,000, not above Rs 2,00,000)	Rs 1,000 (income above Rs 2,00,000)
Fee to ITAT	Rs 1,500 (same slab)	1% of Rs 8,00,000 = Rs 8,000 (below the Rs 10,000 cap)

If Ravi's assessed income were Rs 15,00,000, 1% would be Rs 15,000, so the Tribunal fee would be capped at Rs 10,000.

Worked example 2: stay of a Rs 12 lakh demand

Assumptions: the Commissioner (Appeals) has confirmed an assessment, and the total of tax, interest and penalty payable is Rs 12,00,000. The assessee appeals to the Tribunal and applies for a stay.

1. Minimum deposit for the stay: 20% of Rs 12,00,000 = Rs 2,40,000 (or security of the same amount).
2. Fee for the stay application: Rs 500.
3. First stay: up to 180 days from the date of the order.
4. If the appeal is still pending, the assessee applies for an extension. The total of stay already given and the extension cannot exceed 365 days, so at most 185 more days.
5. If the appeal is still undecided at the end of that period, the stay stands vacated.

Worked example 3: counting the deadlines

Assumptions: four separate matters, one at each stage, with dates chosen for illustration.

Event	Rule applied	Last date
Notice of demand served on 12 Feb 2027	30 days from service (section 358(3)(a))	14 Mar 2027
CIT(A) order communicated on 18 Jan 2027 (a different matter)	Two months from the end of January (section 362(3))	31 Mar 2027
Department's ITAT appeal served on 10 Apr 2027	Cross-objections within 30 days of receiving notice (section 362(4))	10 May 2027
ITAT order received on 5 Mar 2027	120 days from receipt (section 365(2)(a))	3 Jul 2027

For the 120-day count: 26 days remain in March after the 5th, then 30 in April, 31 in May and 30 in June, which is 117 days to 30 June, and 3 more days reach 3 July. Check the way the limit is counted for your case before relying on the last day.

Real-life example 1: Meena and the missing deduction

Meena, a salaried employee, gets an intimation under section 270(1) that disallows a deduction she claimed. She believes the adjustment is wrong. Under section 357(c) she can appeal to the Commissioner (Appeals) within 30 days of the intimation being served, in Form No. 99. She first checks that the tax on the income she returned has been paid, because section 358(6)(a) will otherwise bar admission. She pays the Rs 500 fee if the assessed income is between Rs 1,00,000 and Rs 2,00,000, or Rs 1,000 if it is higher.

Real-life example 2: Ravi's new bank statement

Ravi's assessment adds income because he did not produce a bank statement requested by the Assessing Officer. The notice had been served while he was in hospital. In the first appeal he wants to produce the statement. Rule 192(1)(b) allows it where he was prevented by sufficient cause from producing evidence the Assessing Officer called for. The Commissioner (Appeals) must record why the evidence is admitted, and the Assessing Officer gets a chance to examine it before it is used.

Real-life example 3: a firm weighing the High Court

A partnership firm loses at the Tribunal on a question of how an agreement should be read in light of settled legal principles. The firm's CA must decide whether this is a substantial question of law. If it is only a dispute about facts, section 365(1) offers no way in. If it is a legal question, the firm has 120 days from receiving the Tribunal order to file a memorandum of appeal that states the question precisely. The Supreme Court is open later only if the High Court certifies the case under section 367.

What are the common mistakes in income tax appeals?

• Counting 30 days from the wrong date. For assessment and penalty appeals it runs from service of the notice of demand, not from the order date.
• Not paying the tax on returned income. Section 358(6) makes this a condition of admission.
• Mixing up the Tribunal's deadline with the first appeal's. The Tribunal limit is two months from the end of the month of communication, not 30 days.
• Forgetting the cross-objection window. It is 30 days from the notice, and carries no fee.
• Letting a stay lapse. The stay ends automatically at the limit even if the delay is not your fault.
• Raising a pure fact dispute before the High Court. It needs a substantial question of law.

Quick reference: time limits, forms and fees

Stage	Time limit	Form	Fee
CIT(A) / JCIT(A)	30 days (section 358(3))	Form No. 99	Rs 250 / 500 / 1,000 (section 358(2))
ITAT appeal	2 months from end of month of communication (section 362(3))	Form No. 115	Rs 500 / 1,500 / 1% up to Rs 10,000 (section 362(6))
ITAT cross-objections	30 days from notice (section 362(4))	Form No. 116	Nil
ITAT stay application	Not specified in section 362	-	Rs 500 (section 362(8))
ITAT rectification	6 months from end of month of order (section 363(2))	-	Rs 50 (section 363(4))
High Court	120 days (section 365(2))	Memorandum of appeal	Not specified in the Act
Supreme Court	Not specified in section 367	-	-

How do CA firms keep appeal dates under control?

Appeal deadlines are short and each stage has a different clock. A CA firm with several matters open needs one place that shows the service date, the last date, the fee slab and the pending stay expiry for every client. Finexo's practice management software lets you track these dates across your client book and sends reminders before they pass. It does not file the appeal forms for you.

For the earlier stages that lead to an appeal, see our guides on assessment procedure and scrutiny and reassessment of escaped income.

Where is this in the Act?

• Section 356: appealable orders before the Joint Commissioner (Appeals)
• Section 357: appealable orders before the Commissioner (Appeals)
• Section 358: form, fee, limitation and pre-payment condition; rule 167 (Form No. 99); rule 191 (service of orders)
• Section 359: procedure in appeal
• Section 360: powers of the appellate authority; rule 192 (additional evidence)
• Sections 361 to 364: Appellate Tribunal, appeals, orders, stay and procedure; rule 193 (Forms 115 and 116)
• Section 365: appeal to the High Court
• Section 367: appeal to the Supreme Court
• Section 536(2)(c), (e) and (k): which Act applies to older tax years and pending appeals

This article explains the Income-tax Act, 2025 (as amended by the Finance Act, 2026) and the Income-tax Rules, 2026. It is general information, not tax advice. Confirm the position for a specific case with a chartered accountant or tax professional.