Appeal under the Indian Income Tax Law
Appeal is a remedy for redressal of grievances before higher court or higher forum. It is a proceeding to rectify an erroneous decision of a court or judicial/quasi-judicial authority by submitting the question to a higher court or higher authority.
The Indian direct tax system provides the taxpayers a right to file appeals in respect of certain specified orders of Income Tax Department by providing a multi-layered appellate system.
As part of assessment proceedings, Assessing Officers are responsible for drafting assessment order with their findings. Under the Income Tax Law, every Taxpayer has a right to file an appeal against the assessment order passed by the Assessing Officer.
The Income-tax Act, 1961 provides for four appellate forums:
I. The Commissioner of Income-tax (Appeal) [CIT(A)]
II. The Income-tax Appellate Tribunal (ITAT)
III. The High Court; and
IV. The Supreme Court.
The ITAT is the final fact-finding authority. The High Court and the Supreme Court deal with questions of law only.