Tax Appeal & Litigation Guide: CIT (Appeals) Form 35, NFAC & ITAT Procedure

आयकर अपील एवं कानूनी विवाद प्रक्रिया (फॉर्म 35)

Comprehensive legal guide to the tax appeal hierarchy in India under Chapter XX of the Income Tax Act: filing electronic appeals in Form 35 before the Commissioner of Income Tax (Appeals) / NFAC within 30 days, drafting Statement of Facts and Grounds of Appeal, appealing before the Income Tax Appellate Tribunal (ITAT), and High Court writ petitions.

Written by: Author Profile

Direct Tax & CA Review Panel

Chartered Accountancy Review Panel • Senior Direct Tax Review Desk

Reviewed & Fact-Checked by: Technical Review Panel

Tax Law & Dispute Review Desk

Tax Litigation & Legal Review Panel • Tax Appeal & Procedure Review Desk

Published: 1st April 2026•Last Updated: 15th August 2026•Last Reviewed: 15th August 2026

Key Statutory Highlights (FY 2026-27 (AY 2027-28))

First Appellate Authority: Commissioner of Income Tax (Appeals) / National Faceless Appeal Centre (NFAC).

Statutory Time Limit: Form 35 must be filed electronically on the e-filing portal within 30 days from the date of service of the assessment order or demand notice.

Appeal Filing Fees: ₹250 (income <= ₹1L), ₹500 (income ₹1L to ₹2L), ₹1,000 (income > ₹2L), ₹250 for non-income matters.

Mandatory Pre-Deposit: Taxpayer must deposit 20% of the disputed demand amount to obtain a stay of demand from the Assessing Officer during pendency of appeal before CIT(A).

Second Appeal: If aggrieved by CIT(A) order, appeal can be filed before the Income Tax Appellate Tribunal (ITAT) in Form 36 within 60 days.

Who is Eligible & When Does it Apply?

Applicability #1

Taxpayers aggrieved by assessment orders u/s 143(3), 144, 147, 154, or penalty orders u/s 270A/271.

Step-by-Step Procedure & Compliance Roadmap

Analyze Assessment Order & Grounds of Addition

Review additions made by the Assessing Officer and gather supporting factual evidence and judicial case laws.

Draft 'Statement of Facts' & 'Grounds of Appeal'

Articulate specific legal and factual errors committed in the assessment order.

Pay Appeal Filing Fee via Challan 280

Pay appeal fee under Minor Head 200/400 and obtain BSR code and challan serial.

Submit Form 35 on Income Tax Portal

Fill Form 35 online under e-File -> Income Tax Forms -> File Income Tax Forms -> Form 35 and verify with DSC/EVC within 30 days.

Mandatory Documents Checklist

Assessment Order u/s 143(3)/144/147, Notice of Demand u/s 156, Statement of Facts, Grounds of Appeal, Appeal Fee Challan

Common Mistakes & Compliance Risks to Avoid

•Filing Form 35 after the 30-day limitation period without submitting a strong Condonation of Delay petition.

•Failing to apply for stay of demand, allowing the department to initiate recovery proceedings.

Frequently Asked Questions

How are hearings conducted in Faceless Appeals?

Under the Faceless Appeal Scheme, all submissions, written arguments, and paper books are uploaded digitally. If required, personal hearing is conducted exclusively through video conferencing via the e-filing portal.

Interactive Tax Calculators

Income Tax Calculator

Related Tax Knowledge

Income Tax Notice Guide Find Tax Lawyer

Ask FinSetu Mitra about Tax Appeal & Litigation Guide: CIT (Appeals) Form 35, NFAC & ITAT Procedure

Need clarification on this tax topic? Ask our bilingual AI Guide for instant conceptual guidance.

Connect with a Tax Lawyer

Need filing assistance or personalized case representation? Connect with a qualified active professional.

🛡️ Educational Disclaimer: FinSetu India is an independent educational guidance and calculation platform. Content is published for general citizen awareness based on applicable laws as of FY 2026-27 (AY 2027-28). We do not provide personalized legal/tax advice or file returns directly. Verify current applicable rules on official portals or consult a qualified Chartered Accountant / Tax Lawyer.