Although most of the assesses and tax payers are disciplined in proper filing of returns, the same discipline is not shown by the aggrieved party in case of harassment on various actions by his Assessing officer (AO). The law that adjudicates a person to file Income Tax has also given him powers to file the appeal against the orders passed by the lower government. The appeal can be filed for invalid, unjust and erroneous orders. In fact, in case of non performance of duties by AO, distressed party can appeal against him with the Commissioner Appeals. The Commissioner Appeals has jurisdiction over and above AO. He may call the AO for reviewing, reversing, modifying, revising and affirming his decisions.
Appeal can be made on following grounds
The appeal against the Assessing officer is for the injustice or redressal of any unfairness. It is always important that whatever the grievance is, it is properly communicated to the authority. Social and economic grounds cannot be adjudged as valid in case of the appeal, therefore it is important that the ground of appeal is precise. This should be brief and concise. For example: The Assessing Officer has made a mistake in treating the expenses of repairs of Rs 1,50,000 as a capital expenditure. Similarly, if there is more than one reason of mistake by the Assessing officer, all the reasons must be mentioned by the aggrieved party.
Requirements of the Appeal
The tax payer is not required to produce any evidence, oral or documentary, that is already produced before the Assessing Officer. The additional evidence is only required by the commissioner if the Assessing Officer refuses to admit the evidence.
Procedure for filing the Appeal
Your right to appeal against any order is not for an unlimited period of time. A person can appeal against the order on or before 30 days from receiving the order. Income Tax has given Form 35 for the purposes of appeal. One should clearly specify the grounds on which he is appealing. The person should state the reasons of his appeal and the assessment proceeding after which he thought it was necessary to appeal against the order passed. The section under which the Assessing Officer (AO) gave the order should be specified. Form 35 should be filed in duplicate and the certified copy of the order should be filed along with memorandum of appeal.
The charges for filing the appeal are as follows:
Total Assessed Income
Rs 1 Lakh or less
More than Rs 1 Lakh but less than Rs 2,00,000
More than Rs 2,00,000
If the subject not covered under first three Income
The appeal should be duly signed by the aggrieved party. He will also have to submit letter of authority in favor of Chartered Accountant representing the Assessee. The original notice of demand issued Under Section 156 shall be attached with the appeal.
The Commissioner Appeals gives opportunity to assessee and assessing officer in his hearing under section 250 (2). The section states the right to be heard and a particular day and place is fixed for hearing of the appeal. A notice must give sufficient time for the assessee to be present in hearing. The subject matter must be mentioned clearly in the notice. Opportunities to the assessee for being heard should be in person or through his representative. The appeal to the Commissioner is always considered as the extension to the order given by the AO. This is to reassess the facts and the tax liability. Commissioner can also ask for further investigation of the matter. He is also entitled for fresh evidence and powers under rule 46A.
All in all, a person can file appeal against the AO if he gets any unjustified order. The matter should be thoroughly checked at one’s end before going for the appeal. It is because of the fact that penalty and higher tax liability can be slapped on the assessee if the appeal made by him turns out to be false or unjustified.
Note: Visit incometaxindia.gov.in for latest tax updates and incometaxindiaefiling.gov.in for e-filing updates.
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