Which law applies? The Income-tax Act, 2025 replaces the Income-tax Act, 1961 from 1 April 2026. Orders for earlier years are generally still dealt with under the 1961 Act, and the section numbers and forms in this article refer to that Act and its Rules. We confirm which law, section and form apply to your case before we file.

If you disagree with an assessment order, a penalty order or an intimation that raises a tax demand, the first place to challenge it is the Commissioner of Income Tax (Appeals), usually called the CIT(A). This guide explains how that first appeal works.

Who can file a first appeal?

Any taxpayer who is aggrieved by an appealable order can file. Common examples are an assessment order, an order imposing a penalty, and an intimation that makes adjustments and raises a demand. The order itself will usually say that an appeal lies to the Commissioner (Appeals).

The time limit

The appeal must generally be filed within 30 days of the date on which the notice of demand or the order is served on you. A late appeal can be admitted if you show sufficient cause for the delay, but this is at the discretion of the appellate authority, so it is safer to file on time.

Steps to file

  1. Read the order carefully. Note every addition or disallowance and the reasons the Assessing Officer gave. Each one you want to challenge needs its own ground.
  2. Pay the tax you admit. Before an appeal can be entertained, the tax and interest on the income you have returned or accepted must generally be paid.
  3. Prepare Form 35. The form contains the grounds of appeal and a statement of facts. Grounds should be specific and should separate issues of fact from issues of law.
  4. File online. Appeals are filed on the income tax e-filing portal, with the prescribed fee, and are now largely decided under the faceless appeal system.
  5. Respond to notices. Written submissions and evidence are usually filed through the portal by the date given in the notice.
  6. Attend the hearing. Hearings are typically held by video conference. The order follows in writing.

Preparing strong grounds

  • Take one issue per ground and state clearly why the addition is wrong
  • Raise both legal and factual points where they arise
  • Give complete documents to the Assessing Officer during assessment. There are limits on producing new evidence at the appeal stage
  • Ask for permission early if you need to add a ground later

What happens after the order?

The Commissioner (Appeals) can confirm, reduce, enhance or cancel the assessment. If you are still not satisfied, you can appeal to the Income Tax Appellate Tribunal. Read our guide to the ITAT appeal procedure. The Assessing Officer must then give effect to the order, and we follow this up so that refunds and corrected demands are issued.

Frequently Asked Questions

Can I file the appeal myself?

Yes, an individual or a company can file its own appeal. However, the grounds and the statement of facts shape the whole case, so many taxpayers prefer to have them drafted by an advocate.

What if I missed the 30-day limit?

You can file with an application asking the authority to condone the delay and explaining the reasons. Whether it is accepted depends on whether you can show sufficient cause, so do not delay further.

Do I have to pay the demand while the appeal is pending?

The appeal does not stop recovery automatically. You can ask for a stay of demand. See our guide to the stay of demand.

This page is general information and not legal advice. Time limits, forms and fees change, and the law that applies depends on your facts and the year involved. Please contact us so we can check the current position for your case.