How to appeal an assessment order to CIT(Appeals) using Form 35 within 30 days

A scrutiny assessment that ends in an addition you disagree with is not the end of the road. When an Assessing Officer passes an order under section 143(3) and issues a notice of demand under section 156, the Income Tax Act 1961 gives you a statutory first appeal to the Commissioner of Income Tax (Appeals) under section 246A, filed electronically in Form No. 35 within 30 days. Miss that 30-day window without a good reason and the assessed demand hardens; use it correctly and a wrong addition can be deleted in full. This guide walks through the exact rule, the fee, and a worked salary example.

The Scenario

Picture a salaried professional in Pune who filed a return declaring a total income of Rs 14,00,000 for FY 2025-26. The case is picked for scrutiny, and after an e-Proceedings exchange the Assessing Officer disallows a Rs 4,00,000 claim, reassesses total income at Rs 18,00,000, and serves an order under section 143(3) with a fresh demand. The reader's question is concrete: "I think the disallowance is wrong. Can I challenge it, how many days do I have, and what will it cost me?"

The answer, per the Income Tax Department's own appeals guidance, is that a first appeal against an assessment order lies to the Commissioner (Appeals) under section 246A of the Income Tax Act 1961, filed in Form No. 35 within 30 days of the order or the notice of demand. Since the faceless appeal scheme took effect, these appeals are decided without a physical hearing, with notices issued under section 250 and every submission filed through the e-Proceedings utility of the e-filing portal.

Statutory Answer

Three provisions of the Income Tax Act 1961 do the heavy lifting here. Section 246A lists the orders you can appeal, an assessment under section 143(3) being the most common. Section 249(2) fixes the limitation at 30 days from the date of service of the notice of demand. Section 250 governs the procedure, and since 2021 it operates in a faceless manner, so the Commissioner (Appeals) fixes the matter and issues hearing notices electronically rather than calling you to a counter.

The form and the fee are prescribed. Form No. 35 must be filed electronically on incometax.gov.in, verified by the same mode as your return (digital signature where the return required one, otherwise electronic verification code). The filing fee is set by section 249(1) and turns on your assessed total income, not on the amount in dispute, as the table below shows.

Once the appeal is admitted, section 250 lets the Commissioner (Appeals) call for records, seek a remand report from the Assessing Officer, and give you a reasonable opportunity to be heard before deciding. The powers on disposal come from section 251: in an appeal against an assessment the Commissioner (Appeals) may confirm, reduce, enhance or annul the assessment. The power to enhance is real, so a poorly argued appeal can leave you worse off than the order you challenged, which is why the grounds of appeal and the statement of facts in Form No. 35 deserve care.

Two practical guardrails matter before you file. First, section 249(4) requires that the tax due on the income you have returned is paid before the appeal is admitted, so clear the admitted portion first. Second, filing an appeal does not automatically stay recovery of the disputed demand; a separate stay application is needed, and under long-standing Central Board of Direct Taxes guidance the Assessing Officer will ordinarily grant a stay on payment of 20 per cent of the disputed demand while the first appeal is pending.

How to file Form No. 35 on the e-filing portal

The mechanics are entirely online. The sequence below reflects the e-Proceedings workflow that also carries faceless assessment notices under section 144B into your account.

1. Log in at incometax.gov.in and open e-File, then Income Tax Forms, then File Income Tax Forms, and select Form No. 35.
2. Enter the order details: the section (143(3)), the Document Identification Number (DIN), and the date of the order or notice of demand from which the 30 days run.
3. Draft the Grounds of Appeal and the Statement of Facts. Keep each ground specific to one addition rather than one sweeping paragraph, because the Commissioner (Appeals) adjudicates ground by ground under section 250.
4. Pay the section 249(1) fee (Rs 1,000 in the worked example below), attach the challan, and upload the assessment order and demand notice.
5. Verify and submit. An acknowledgement with an appeal number is generated, and hearing notices then arrive electronically under section 250.

If the 30 days have already lapsed, section 249(3) lets the Commissioner (Appeals) condone the delay for sufficient cause, so a delayed appeal with a genuine reason (hospitalisation, a misdirected email) is filed with a condonation request rather than abandoned.

Worked Resolution

Return to the Pune professional. The dispute is not the whole demand but the extra tax caused by the Rs 4,00,000 addition, so the first task is to size that number precisely using the FY 2025-26 new-regime slabs. The table computes tax on the returned figure and on the assessed figure; the gap is what the appeal is really fighting over. You can reproduce this on Oquilia's income tax calculator.

The additional tax created by the disallowance is Rs 1,66,400 minus Rs 93,600, or Rs 72,800, before interest under sections 234B and 234C. That Rs 72,800 is the amount the appeal seeks to delete. Because the assessed total income of Rs 18,00,000 sits in the top band of section 249(1), the appeal fee is Rs 1,000, a fixed cost unrelated to the Rs 72,800 at stake.

To hold recovery while the faceless appeal runs, the professional files a stay application and pays 20 per cent of the disputed tax, roughly Rs 14,560 of the Rs 72,800, in line with CBDT's stay guidance. If the Commissioner (Appeals) later deletes the Rs 4,00,000 addition under section 251, that deposit is refunded with interest under section 244A, and the reader can track the eventual tax refund through the portal. Note that the figures use the standard slabs only; the returned income here already excludes the Rs 75,000 standard deduction, and no section 87A rebate arises because income exceeds Rs 12,00,000. Readers weighing regimes before they ever reach an assessment can compare outcomes on the old versus new regime calculator.

If the Commissioner (Appeals) confirms the addition instead, the next statutory step is a second appeal to the Income Tax Appellate Tribunal under section 253, filed in Form No. 36 within 60 days of the appellate order. The 30-day and 60-day clocks are unforgiving, so diarise both the moment an order is served.

FAQ

How many days do I have to file an appeal to CIT(Appeals)?

Section 249(2) of the Income Tax Act 1961 allows 30 days from the date of service of the notice of demand relating to the assessment. The 30 days run from service, not from the date printed on the order, and a delay can be condoned under section 249(3) for sufficient cause.

Which form and which section do I use for the first appeal?

The first appeal against an assessment order lies under section 246A and is filed in Form No. 35 electronically on incometax.gov.in. The form captures the order details, the Document Identification Number, the grounds of appeal and the statement of facts, verified by the same mode used for your income tax return.

What is the fee to file Form No. 35?

Section 249(1) fixes the fee by assessed total income: Rs 250 where it is Rs 1,00,000 or less, Rs 500 where it is above Rs 1,00,000 up to Rs 2,00,000, and Rs 1,000 where it exceeds Rs 2,00,000. In the worked example the assessed income of Rs 18,00,000 attracts the Rs 1,000 fee, paid by challan before submission.

Does filing an appeal stop the tax demand from being recovered?

No. An appeal under section 246A does not by itself stay recovery; a separate stay application is needed. Under CBDT guidance the Assessing Officer will ordinarily grant a stay on payment of 20 per cent of the disputed demand while the first appeal is pending, which in the example is about Rs 14,560 of the Rs 72,800 in dispute.

Can the Commissioner (Appeals) increase my tax?

Yes. Section 251 empowers the Commissioner (Appeals) to confirm, reduce, enhance or annul the assessment in an appeal against an assessment order. Because enhancement is possible, frame each ground precisely; a weak appeal on a Rs 4,00,000 addition can invite a wider review rather than relief.

Is the appeal hearing physical or faceless?

Appeals are now decided in a faceless manner. Notices are issued under section 250 and every reply is filed through the e-Proceedings utility, the same channel that delivers faceless assessment orders under section 144B. There is no counter visit, so watch your registered email and the portal for the 15-day or shorter response windows.

What if I lose before the Commissioner (Appeals)?

A second appeal lies to the Income Tax Appellate Tribunal under section 253, filed in Form No. 36 within 60 days of the appellate order. Keep the same care over limitation, and if the underlying dispute is about pre-paid tax, cross-check your TDS and advance tax credits before you escalate.