Form 35 Income Tax Appeal — Complete Guide (AY 2025–26)

📁 Category: Income Tax  |  🗓️ Last Updated: February 2026  |  ✍️ By: DisyTax Team

Received an order from the Assessing Officer (AO) that you believe is incorrect, excessive, or unfair? You do not have to accept it silently. The Income Tax Act gives every taxpayer a statutory right to challenge such orders — and Form 35 is the legal instrument to exercise that right. Through Form 35, you can file a formal appeal before the Commissioner of Income Tax (Appeals) [CIT(A)] or the Joint Commissioner of Income Tax (Appeals) [JCIT(A)] under the Faceless Appeal Scheme.

When Should You File Form 35?

An appeal under Form 35 can be filed when you believe the AO has passed an order that is legally incorrect or factually wrong. Common situations include:

• AO has overestimated your income and raised an inflated demand
• A valid deduction or exemption has been disallowed without sufficient justification
• A penalty has been imposed under Section 270A, 271, or similar provisions that is not warranted
• A Best Judgement Assessment under Section 144 has been passed without giving you a fair hearing
• An ex-parte order was passed where you were not given an adequate opportunity to be heard
• TDS-related orders where a deductor disagrees with the AO's findings
• Search or survey-related assessment orders under Sections 153A / 143(3) that are disputed

Time Limit to File Form 35

Under Section 249(2) of the Income Tax Act, the time limit to file a Form 35 appeal is 30 days from the relevant triggering date:

Type of Appeal	30-Day Countdown Starts From
Appeal against an Assessment or Penalty Order	Date of service of Notice of Demand under Section 156
Appeal against any other order	Date of communication / receipt of the order being appealed

Missed the 30-Day Deadline? — Condonation of Delay

If you were unable to file within 30 days due to a genuine reason, you can still file the appeal along with a Condonation of Delay application under Section 249(3). The CIT(A) has discretionary power to condone the delay if you provide a valid and reasonable explanation in writing.

• State the reasons for delay clearly — medical emergency, postal delay, natural calamity, etc.
• Ignorance of law is generally not accepted as a valid reason for condonation
• File as soon as possible — the longer the delay, the harder it is to get it condoned
• Attach supporting evidence for the cause of delay wherever possible

Appeal Fee — Slab-Wise Chart

An appeal fee must be paid before or at the time of filing Form 35. The fee depends on the total income as determined by the AO:

Total Income as Assessed by AO	Appeal Fee (INR)
Up to Rs. 1,00,000	Rs. 250
Rs. 1,00,001 to Rs. 1,99,999	Rs. 500
Rs. 2,00,000 and above	Rs. 1,000
Other types of appeals (not covered above)	Rs. 250

Documents Required for Form 35

Keep these documents ready before you start filling Form 35 on the portal:

• Copy of the AO's order being challenged (downloadable from e-Proceedings)
• Copy of Notice of Demand under Section 156 (if applicable)
• Memorandum of Appeal — the primary request and relief sought
• Statement of Facts — brief and factual background of the case
• Grounds of Appeal — specific legal and factual reasons for challenging the order
• Challan details of appeal fee paid (BSR Code, Date, Amount)
• Copy of the ITR filed for the relevant Assessment Year
• Tax payment challans (advance tax, self-assessment tax)
• Supporting documentary evidence backing your grounds (Rule 46A)

Faceless Appeal Scheme — What You Must Know

The Government of India introduced the Faceless Appeal Scheme to eliminate discretion, increase transparency, and make the appeal process fully digital. The scheme was formalized through the e-Appeal Scheme 2023 notified by CBDT via Gazette Notification dated 29 May 2023.

• All appeal assignments are done through an automated, randomized system — no manual selection
• Cases are allocated to any Appeal Unit across India — not necessarily in your jurisdiction
• No in-person hearing is held by default — all communication is digital through the portal
• All proceedings, notices, and orders are issued electronically through the National Faceless Appeal Centre (NFAC)
• Taxpayers can request a personal hearing via video conferencing if required

Step-by-Step: How to File Form 35 Online

Form 35 must be filed online at www.incometax.gov.in. Follow these steps carefully:

Step 1 — Login to the e-Filing Portal

• Go to www.incometax.gov.in and log in with your PAN / TAN and password.
• From the dashboard, click on "e-File" in the top navigation menu.
• Select "Income Tax Forms" → "File Income Tax Forms".
• Search for Form 35 in the list and click "File Now".
• Select the relevant Assessment Year and click "Continue".

Step 2 — Select Order Type

• Choose whether the appeal is against an "Order with DIN" or "Order without DIN".
• For DIN-based orders, details are auto-fetched; for others, enter the section, order number, and date manually.
• Fill in the relevant order details and click Save.

Step 3 — Fill Basic Information Tab

• Verify and update your address and contact information — all mandatory fields are required.
• Select the appropriate status of the appellant (Individual, HUF, Firm, Company, etc.).
• Confirm and Save the tab.

Step 4 — Order Details Tab

• Fill in the details of the order being appealed — Assessment Year, Section invoked, Order Date, and AO details.
• Upload the order copy in PDF format as per the portal's size requirements.
• Upload the Section 156 Notice of Demand copy if available.
• Confirm and save the tab.

Step 5 — Pending Appeal Details

• If any earlier appeal is pending for the same assessment year, select Yes and provide those details.
• If no prior appeal is pending, select No and save the tab.

Step 6 — Tax Details Tab

• Select whether the appeal pertains to assessment, penalty, or neither.
• If an ITR was filed, enter the Acknowledgement Number, Filing Date, and Total Tax Paid.
• Confirm whether tax as per the filed return has been fully paid.
• Add appeal fee challan details — BSR Code, Payment Date, and Amount — and click Add.

Step 7 — Statement of Facts, Grounds & Additional Evidence

• In the Statement of Facts field, concisely describe the factual background of the case.
• In the Grounds of Appeal field, write all specific, numbered legal grounds clearly.
• Under Additional Evidence, upload supporting documents under Rule 46A if applicable.
• Confirm and save the tab.

Step 8 — Delay & Fee Details

• Indicate whether there is a delay in filing. If yes, clearly write the Grounds for Condonation of Delay.
• Add the appeal fee payment details (BSR Code, Date, Amount) and click Add.
• Confirm and save the tab.

Step 9 — Preview, Verify & Submit

• Review all tabs carefully — ensure no mandatory field is empty or incorrect.
• Click Preview to read the complete form one final time.
• Verify using Aadhaar OTP / DSC / EVC as applicable.
• Click Submit. Download and safely store the acknowledgement PDF and note the acknowledgement number.

How to Draft Strong Grounds of Appeal

Your Grounds of Appeal are the legal backbone of your case. Weak grounds lead to weak outcomes. Follow these best practices:

• Write every ground as a separate, numbered point
• Each ground must cite a specific legal provision — e.g., "Deduction under Section 37(1) was wrongly disallowed"
• Avoid vague language like "the AO's order is incorrect" — this alone carries no legal weight
• Include alternate grounds on a Without Prejudice basis — these act as a safety net if primary grounds fail
• Address both quantum (amount) and admissibility (eligibility) where applicable
• For penalty appeals, establish bona fide belief and reasonable cause clearly
• Keep the language formal, precise, and factual — avoid emotional or personal remarks about the AO

Stay of Demand During Pending Appeal

Filing Form 35 does not automatically stop the Income Tax Department from recovering the outstanding demand. Recovery actions — such as attachment of bank accounts, property, or adjustment of pending refunds — can continue even while the appeal is pending. To prevent this, you must separately apply for a Stay of Demand.

• A separate written Stay of Demand application must be submitted to the AO and/or CIT(A)
• Under CBDT Circular No. 1914 and subsequent instructions, payment of 20% of the outstanding demand generally results in a stay of recovery
• This is not automatic — obtain written confirmation from the AO that recovery is stayed
• If the stay is denied, you may approach the High Court under Article 226 of the Constitution in extreme cases

Additional Evidence — Rule 46A Explained

If you wish to present documentary evidence before CIT(A) that was not submitted before the AO, Rule 46A of the Income Tax Rules, 1962 governs this situation.

• Additional evidence is only permitted in specific and justified circumstances
• You must demonstrate a reasonable cause for why the evidence could not be presented during the original AO proceedings
• CIT(A) has the discretion to allow or disallow additional evidence
• Before allowing it, CIT(A) must give the AO an opportunity to examine and respond to the additional evidence
• To avoid complications, always present all relevant evidence at the AO stage itself

Possible Outcomes of a CIT(A) Appeal

After hearing both sides, CIT(A) / JCIT(A) may pass one of the following orders:

Order Type	What It Means for You
Allowed	Your appeal is fully accepted — the AO's order is modified or cancelled in your favour
Partly Allowed	Some grounds are accepted, others are rejected — demand is partially reduced
Dismissed	Appeal is rejected — AO's original order stands as confirmed
Set Aside	Matter is sent back to AO for fresh assessment with specific directions
Enhanced	CIT(A) increases the demand beyond what the AO assessed — this is legally possible

Still Not Satisfied? — Next Steps After CIT(A)

If the CIT(A) / JCIT(A) order is not in your favour, the Income Tax Act provides a clear hierarchy of further appeal options:

• ITAT — Income Tax Appellate Tribunal (Form 36): Second-level appeal. Both questions of fact and questions of law are considered at this stage.
• High Court (Section 260A): Only a substantial question of law can be raised before the High Court against an ITAT order.
• Supreme Court: Final appellate authority. Only in exceptional cases involving significant questions of law.

Frequently Asked Questions (FAQs)