Income tax appeal in 2026: Form 99 (earlier Form 35), the CIT(A), the ITAT, time limits and fees

Published 11 Nov 2026

In short: To appeal an income tax order in India in 2026, file Form 99 (earlier Form 35) before the Commissioner (Appeals) within 30 days of the demand notice, under section 357 of the Income-tax Act, 2025. If the CIT(A) rules against you, file Form 115 (earlier Form 36) before the Income Tax Appellate Tribunal within two months from the end of the month the order is communicated. The ITAT fee is ₹500 to ₹10,000, and stay of demand is normally granted on paying 20% of the disputed tax.

Published 11 November 2026 · By Regi Tom Antony, FCA, MBA (Australia), ACMA (UK), CGMA (USA), CISA (USA), Managing Partner, Regi Tom Antony & Associates, Chartered Accountants, Kochi (est. 1997). Senior Member, Taxation Sub Committee, FICCI Kerala State Council, and guest speaker at CBIC–DGTS GST outreach programmes (list of talks).

Most income tax disputes are settled at the first appeal or the Tribunal. They are lost more often on procedure than on merits: a missed 30-day window, a grounds of appeal that does not match the order, or a demand recovered from the bank account while the appeal sits pending. The Income-tax Act, 2025 came into force on 1 April 2026 with new section and form numbers, but the route is the same. This guide sets out the route, the time limits, the fees and what to do about the demand while the appeal is pending.

What is the income tax appeal route in 2026?

The ITAT is the last forum that decides facts. The High Court hears only substantial questions of law. In practice that makes the Tribunal the stage where every document, reconciliation and explanation has to be on record.

How do you file a first appeal to the CIT(A) in Form 99?

An appeal against an assessment, reassessment, penalty or other appealable order goes to the Commissioner (Appeals), or to the Joint Commissioner (Appeals) for smaller cases, under section 357 of the Income-tax Act, 2025. It is filed electronically in Form 99 on the e-filing portal. Form 99 replaces Form 35, the number most taxpayers still search for.

• Time limit: 30 days from the date the demand notice (for an assessment or penalty order) or the order (in other cases) is served (section 358, earlier section 249).
• Condition: tax on the income returned must be paid before the appeal is admitted. If no return was filed, an amount equal to advance tax must be paid.
• Fee: ₹250 to ₹1,000, depending on the assessed income, paid through challan before filing.
• Late appeal: the appellate authority can admit an appeal filed late if you show sufficient cause. Form 99 has a delay field; attach a statement of reasons with supporting evidence.
• Grounds: one ground for each addition or disallowance, plus legal grounds such as limitation or a defective notice. Additional grounds can be raised later, but a complete set at the start is better.
• Hearing: most first appeals are faceless. Written submissions and evidence are uploaded on the portal; a video hearing can be requested.

Do you have to pay the demand while the first appeal is pending?

Filing an appeal does not stop recovery. Apply to the Assessing Officer for stay of demand as soon as the appeal is filed. Under the CBDT office memorandum of 29 February 2016, as modified on 31 July 2017, stay is normally granted on payment of 20% of the disputed demand, with a higher or lower amount possible on the facts. If the Assessing Officer refuses, the request can go to the Principal Commissioner. Without a stay, refunds of other years can be adjusted against the demand and bank accounts can be attached.

How do you appeal to the ITAT in Form 115, and what does it cost?

Either you or the department can appeal to the Income Tax Appellate Tribunal against an order of the CIT(A), and against certain orders such as those passed on directions of the Dispute Resolution Panel, under section 362 of the Income-tax Act, 2025.

The Tribunal can admit an appeal filed after the two months if there was sufficient cause. Condonation is decided on the facts; a delay explained with documents (illness, a change of counsel, the order not being received) is treated very differently from one that is not explained.

What decides an ITAT appeal?

• The paper book. The Tribunal decides on the record. Index every document filed before the Assessing Officer and the CIT(A): returns, accounts, bank statements, confirmations, valuation reports and earlier submissions.
• Grounds that match the order. Each addition upheld by the CIT(A) needs its own ground; a general ground that "the order is bad in law" carries little weight on its own.
• Legal points first. Limitation, jurisdiction, a reassessment notice issued without the required approval, or a search assessment beyond the block period can dispose of the whole case.
• Additional evidence. The Tribunal can admit new evidence only in limited circumstances, so evidence should go in at the first appeal wherever possible.
• Precedents. Decisions of the jurisdictional High Court (Kerala) and earlier Cochin Bench orders on the same issue bind or guide the bench.

Can the ITAT stay the demand?

When the CIT(A) has upheld the demand, the Tribunal can grant a stay on an application with a fee of ₹500. Under the rules carried over from the 1961 Act, a stay runs for up to 180 days and can be extended to a maximum of 365 days. It is normally conditional on deposit of at least 20% of the tax in dispute or equivalent security. Ask for an early hearing if a stay is granted.

When does the Income Tax Department appeal against you?

The department does not appeal every order it loses. Under CBDT Circular No. 9/2024 of 17 September 2024, it generally files an appeal only where the tax effect exceeds ₹60 lakh before the ITAT, ₹2 crore before the High Court and ₹5 crore before the Supreme Court, subject to listed exceptions. If you win at the CIT(A) on a smaller amount, the order is usually final. Watch for cross-objections only if an appeal is in fact filed.

How to file an income tax appeal: step by step

1. Fix the dates. Note the date the order and demand notice were served. For the ITAT, count two months from the end of that month.
2. Pay what is not in dispute. Tax on returned income for the first appeal; any admitted additions.
3. Protect against recovery. Apply for stay of demand the same week the appeal is filed.
4. Draft the grounds and statement of facts. One ground per addition, plus legal grounds.
5. File and pay the fee. Form 99 on the e-filing portal; Form 115 on the ITAT or e-filing portal. Keep the acknowledgement.
6. Prepare for the hearing. Written submissions and paper book; a Chartered Accountant can appear before the CIT(A) and the ITAT as authorised representative.

Which form applies to orders under the 1961 Act?

Appeals filed from 1 April 2026 use the forms of the Income-tax Rules, 2026 (Form 99, Form 115, Form 116), and the e-filing portal applies the right form for the order. The time limits did not change. Where an appeal was already pending on 1 April 2026, it continues before the same forum.

Need help with this? We prepare and argue appeals before the Commissioner (Appeals) and the Income Tax Appellate Tribunal, Cochin Bench, and apply for stay of demand. For High Court matters we work with tax lawyers. See tax representation in Kochi or book a tax notice review call.

Frequently asked questions

What is Form 99 in income tax?

Form 99 is the form for filing a first appeal before the Commissioner (Appeals) or the Joint Commissioner (Appeals) under section 357 of the Income-tax Act, 2025. It replaces Form 35 of the 1961 Act rules and is filed electronically on the e-filing portal.

Is Form 35 still used?

Appeals filed from 1 April 2026 are filed in Form 99 under the Income-tax Rules, 2026. Form 35 is the old name for the same first appeal, and the e-filing portal applies the correct form.

What is the time limit to appeal to the CIT(A)?

30 days from the date the demand notice or order is served (section 358 of the Income-tax Act, 2025, earlier section 249). A later appeal can be admitted if sufficient cause for the delay is shown.

What is the time limit to appeal to the ITAT?

Two months from the end of the month in which the order is communicated to you. Cross-objections in Form 116 are due within 30 days of receiving notice of the department's appeal.

What is the ITAT appeal fee?

₹500 where assessed income is up to ₹1 lakh, ₹1,500 where it is above ₹1 lakh and up to ₹1 crore, and 1% of assessed income up to a maximum of ₹10,000 where it is above ₹1 crore. Other appeals and stay applications cost ₹500. Cross-objections carry no fee.

Which form is used to appeal to the ITAT?

Form 115 under the Income-tax Rules, 2026 (earlier Form 36). Cross-objections are filed in Form 116.

Can a Chartered Accountant appear before the ITAT?

Yes. A Chartered Accountant can appear as authorised representative before the Commissioner (Appeals) and the Income Tax Appellate Tribunal. High Court appeals are argued by advocates.

Do I have to pay the demand while my appeal is pending?

Not if a stay is granted. The Assessing Officer normally grants stay on payment of 20% of the disputed demand under the CBDT office memorandum of 29 February 2016 as modified on 31 July 2017. Before the ITAT, a stay application can be filed once the CIT(A) has decided against you.

Where is the ITAT bench for Kerala?

The Income Tax Appellate Tribunal has a Cochin Bench in Kochi, which hears appeals from Kerala.

Will the department appeal if I win before the CIT(A)?

Usually only if the tax effect exceeds ₹60 lakh, the limit for ITAT appeals under CBDT Circular No. 9/2024, unless one of the listed exceptions applies.

Related guides

• Tax representation in Kochi: notices, scrutiny, search and appeals up to the ITAT
• Income tax raid: what happens in a search or survey, and what to do
• How to handle GST and income tax notices
• GST Appellate Tribunal (GSTAT): how to appeal

Sources

• Income-tax Act, 2025, sections 357, 358, 362 and 365; Income-tax Rules, 2026, Forms 99, 115 and 116 — incometaxindia.gov.in
• Income Tax Appellate Tribunal, e-filing and Cochin Bench — itat.gov.in
• CBDT Circular No. 9/2024 dated 17 September 2024, monetary limits for departmental appeals — incometaxindia.gov.in

This guide reflects the law as at 11 November 2026. It is general information, not advice on a specific case.