Q: Step-by-step procedure

The section of law behind each step is shown beside it. 1 Get the order and demand notice s.127 Note the date each was served on you; the 30 days run from service. 2 Decide the grounds s.127(3)(c) State precisely what is wrong in fact and law. Grounds must be specific. 3 Pay the fee s.127(4) Deposit the prescribed fee by challan. 4 File the appeal s.127(3) In the prescribed form, verified, with grounds, order, demand notice and fee challan. 5 Apply for stay if recovery has started s.128(1A) Show undue hardship; the Commissioner (Appeals) can stay recovery for up to 30 days, extendable by 30 days. 6 Hearing s.128(1), (2) Notice of the hearing goes to you and the Commissioner. Hearings can be adjourned. 7 Add new grounds if needed s.128(3) Allowed before the hearing if the omission wasn't wilful or unreasonable. 8 Decision s.129 The order may confirm, modify or annul the assessment. 9 Next step s.131 If still aggrieved, appeal to the Appellate Tribunal within 60 days.

Question 1

When this applies

Accepted Answer

You disagree with an order under sections 120(2A), 121, 122, 143, 144, 162, 170, 182 or 205, or an order holding you personally liable for tax.

Question 2

Time limits, fees and sections

Accepted Answer

Item Rule Section Time limit 30 days s.127(5) From Service of the demand notice (assessment or penalty), or of the order in other cases s.127(5) Fee – assessment Rs 2,500 (company Rs 5,000) s.127(4)(a) Fee – other orders Rs 1,000 (company Rs 5,000) s.127(4)(b) Stay of recovery Up to 30 days, plus 30 more if the appeal is decided within that time s.128(1A), (1AA)

Question 3

Step-by-step procedure

Accepted Answer

The section of law behind each step is shown beside it.

1
Get the order and demand notices.127
Note the date each was served on you; the 30 days run from service.
2
Decide the groundss.127(3)(c)
State precisely what is wrong in fact and law. Grounds must be specific.
3
Pay the fees.127(4)
Deposit the prescribed fee by challan.
4
File the appeals.127(3)
In the prescribed form, verified, with grounds, order, demand notice and fee challan.
5
Apply for stay if recovery has starteds.128(1A)
Show undue hardship; the Commissioner (Appeals) can stay recovery for up to 30 days, extendable by 30 days.
6
Hearings.128(1), (2)
Notice of the hearing goes to you and the Commissioner. Hearings can be adjourned.
7
Add new grounds if neededs.128(3)
Allowed before the hearing if the omission wasn't wilful or unreasonable.
8
Decisions.129
The order may confirm, modify or annul the assessment.
9
Next steps.131
If still aggrieved, appeal to the Appellate Tribunal within 60 days.

Question 4

Documents to prepare

Accepted Answer

Impugned order and demand notice Notice and reply history Return, wealth statement and supporting records Fee challan Authority letter for your representative

Question 5

Practical tips

Accepted Answer

Late appeals need a condonation request showing sufficient cause Tax remains recoverable unless stayed, so ask for a stay early

Item	Rule	Section
Time limit	30 days	s.127(5)
From	Service of the demand notice (assessment or penalty), or of the order in other cases	s.127(5)
Fee – assessment	Rs 2,500 (company Rs 5,000)	s.127(4)(a)
Fee – other orders	Rs 1,000 (company Rs 5,000)	s.127(4)(b)
Stay of recovery	Up to 30 days, plus 30 more if the appeal is decided within that time	s.128(1A), (1AA)