| Question And Answer | |
|---|---|
| Subject: | Income tax appeal before CIT(A) |
| Category: | Income-Tax |
| Querist: | MOHAMED ALI |
| Answered by: | Law Intern |
| Tags: | appeal before first appellate authority, CIT (A) appeal |
| Date: | February 25, 2025 |
The assessee wishes to file a CIT appeal on his own. And he is financially weak and unable to pay 20% of the disputed tax amount. In this case, is the appeal allowed? your valuable advice will be appreciated.
Thank you
The right to appeal is a statutory right under the Income Tax Act, 1961 (Section 246A), and filing an appeal is not contingent upon pre-payment of the disputed tax amount. The appeal can be submitted within 30 days of receiving the assessment order or demand notice, using Form 35, along with the applicable filing fee (which ranges from ₹250 to ₹1,000, depending on the assessed income).
The assessee should file a stay application along with the appeal, clearly explaining the financial difficulties (e.g., bank statements, income proofs, or affidavits showing inability to pay). This request should emphasize that paying the amount would cause undue hardship and potentially render the appeal ineffective.
Courts have held that the tax authorities cannot adopt a rigid stance on the 20% payment rule. For instance, if recovery would push the assessee into insolvency or extreme distress, the authorities are expected to exercise discretion leniently. The focus is on balancing the taxpayer’s rights with the revenue’s interest.