What is a Faceless Income Tax Appeal?

A Faceless Income Tax Appeal is the electronic process through which an eligible taxpayer can challenge an appealable order of the Income Tax Department before the first appellate authority, generally the Commissioner of Income Tax (Appeals) [CIT(A)] or Joint Commissioner of Income Tax (Appeals) [JCIT(A)], as applicable.

The appeal is filed electronically in Form 35 through the Income Tax e-filing portal. Form 35 contains, among other particulars, the Statement of Facts and Grounds of Appeal, and is accompanied by the relevant assessment/penalty order, notice of demand and other prescribed documents.

Under the faceless appellate framework, appeals are allocated electronically and the proceedings are conducted substantially through digital communication, electronic submissions and the e-filing portal, thereby reducing the requirement for physical interaction with the tax authorities. The current framework includes the Faceless Appeal Scheme, 2021 for CIT(A) proceedings and the e-Appeal Scheme, 2023 for JCIT(A) proceedings.
For the assessment-stage framework, read our detailed guide on Faceless Assessment Procedure.

Income-tax Act, 2025 Update: The Income-tax Act, 2025 applies from 1 April 2026. Existing faceless appeal schemes continue under the corresponding provisions of the new Act, while proceedings relating to earlier tax years continue to be governed by the Income-tax Act, 1961, as applicable.

Who Can File an Income Tax Appeal?

An income tax appeal may generally be filed by an assessee, deductor or other eligible appellant who is aggrieved by an appealable order of the Income Tax Department.

Depending on the nature of the order and the statutory allocation, the first appeal may lie before the Commissioner of Income Tax (Appeals) [CIT(A)] or the Joint Commissioner of Income Tax (Appeals) [JCIT(A)].

Which Orders Can Be Appealed?

Major appealable orders include:

• adjustments made while processing an income tax return;
• scrutiny assessment orders;
• best judgment assessment orders;
• reassessment / income escaping assessment orders;
• certain TDS and TCS related orders;
• rectification orders affecting the taxpayer adversely;
• orders treating a person as an assessee in default;
• penalty orders; and
• certain other orders specifically made appealable under the Income-tax Act.

For proceedings governed by the Income-tax Act, 1961, the principal provisions dealing with appealable orders before CIT(A) are contained in Section 246A, while separate provisions apply for appeals allocated to JCIT(A).

Note: Not every order issued by the Income Tax Department is appealable before CIT(A)/JCIT(A). The appropriate appellate remedy should therefore be checked with reference to the nature of the order and the law applicable to the relevant tax year.

How to File an Income Tax Appeal in Form 35 – Step by Step

An appeal before the first appellate authority is filed electronically in Form 35 through the Income Tax e-filing portal. The form requires details of the order being challenged, taxes paid, grounds of appeal, supporting documents and prescribed appeal fee.

The broad filing procedure is as follows:

1. Login to the Income Tax e-filing portal using the taxpayer’s PAN/TAN credentials.
2. Go to Pending Actions → E-Proceedings → File Appeal, or alternatively navigate through e-File → Income Tax Forms → File Income Tax Forms → Form 35.
3. Select the relevant Assessment Year / Financial Year.
4. Select the order against which the appeal is being filed, including the relevant DIN/order number, section and date of order or demand notice.
5. Complete the details relating to the order appealed against, pending appeals and nature of the appeal.
6. Provide details of taxes already paid, wherever applicable.
7. Enter the Statement of Facts explaining the factual background of the case.
8. Enter the Grounds of Appeal setting out the specific legal and factual grounds on which the order is challenged.
9. Where required, provide details of additional evidence proposed to be relied upon.
10. Enter details of the appeal filing fee and, where the appeal is filed after the prescribed period, state the grounds for condonation of delay.
11. Upload the relevant documents and supporting evidence.
12. Preview the completed Form 35 and e-verify it using the applicable DSC/EVC method.
13. After successful filing, download and retain the Form 35 acknowledgement.

Important Documents for Form 35

The following documents/details should generally be kept ready:

• Copy of the order being appealed against
• Notice of demand
• DIN or order number
• Statement of Facts
• Grounds of Appeal
• Documentary evidence
• Details of taxes paid
• Details of appeal fee paid
• Details of any pending appeals
• Additional evidence, wherever applicable

Time Limit for Filing Income Tax Appeal

An appeal before the CIT(A)/JCIT(A) is generally required to be filed within 30 days. Where the appeal relates to an assessment or penalty, the 30-day period is generally counted from the date of service of the relevant notice of demand. In other cases, it is counted from the date on which the order sought to be appealed against is served.

Can Delay in Filing Form 35 Be Condoned?

Yes. If the appeal could not be filed within the prescribed period due to a reasonable or sufficient cause, the appellate authority may condone the delay. The taxpayer should explain the reasons for delay while filing Form 35 and support the request appropriately.

Appeal Fee for Filing Form 35

The appeal fee must be paid before filing Form 35, and the payment details are entered in the appeal form.

Note: The applicable limitation period and appeal fee should be checked with reference to the nature of the order and the law governing the relevant proceeding.

Statement of Facts and Grounds of Appeal

The Statement of Facts and Grounds of Appeal are two of the most important parts of Form 35. They should be prepared carefully because they form the foundation of the taxpayer’s case before the appellate authority.

Statement of Facts

The Statement of Facts should briefly explain:

• background of the taxpayer and relevant transaction;
• return of income and assessment proceedings;
• notices issued and submissions made;
• additions or disallowances made by the Assessing Officer;
• relevant factual circumstances; and
• other material facts necessary to understand the dispute.

The Income Tax portal presently permits the facts of the case to be entered in Form 35 up to 10,000 characters, along with documentary evidence relied upon.

Grounds of Appeal

Grounds of Appeal should clearly identify the issues being challenged and the relief sought from the appellate authority.

Good grounds should generally be:

• concise and separately numbered;
• specific to each disputed addition, disallowance or legal issue;
• drafted without unnecessary factual narration;
• broad enough to protect the taxpayer’s appellate rights; and
• supported by detailed written submissions and evidence during the appeal proceedings.

Avoid putting the entire factual argument into the Grounds of Appeal. The facts explain what happened, whereas the grounds identify why the assessment or other order is being challenged.

The official Form 35 framework separately captures the Statement of Facts, Grounds of Appeal and Additional Evidence, which supports keeping these components distinct.

Practical Tip: Carefully drafted grounds at the Form 35 stage are important because inadequately framed grounds may complicate the appellate proceedings. Additional or modified grounds may be sought later where legally permissible, but it is preferable to identify all material disputes at the time of filing the appeal.

Additional Evidence in Income Tax Appeal – Rule 46A

As a general rule, an appellant is expected to rely on the evidence that was produced before the Assessing Officer. However, Rule 46A of the Income-tax Rules, 1962 permits additional oral or documentary evidence before the JCIT(A)/CIT(A) in specified circumstances.

Additional evidence may be admitted where:

• the Assessing Officer refused to admit evidence which ought to have been admitted;
• the appellant was prevented by sufficient cause from producing evidence specifically called for by the Assessing Officer;
• the appellant was prevented by sufficient cause from producing relevant evidence before the Assessing Officer; or
• the assessment order was passed without giving sufficient opportunity to produce evidence relevant to the grounds of appeal.

How is Additional Evidence Filed?

Where additional evidence is required, the appellant should ordinarily file:

• an application under Rule 46A explaining why the evidence could not be furnished during assessment;
• the additional documentary evidence; and
• supporting facts establishing the circumstances justifying its admission.

The appellate authority must record reasons in writing before admitting additional evidence. The Assessing Officer must also be given a reasonable opportunity to examine the evidence, cross-examine a witness where relevant, or submit evidence in rebuttal.

Under the faceless appellate framework, additional evidence and the supporting justification can be submitted electronically, and the matter may be forwarded to the Assessing Officer for comments or a remand report.

Important Distinction

Additional evidence is different from additional grounds of appeal. Additional evidence refers to new documents or other evidence sought to be produced during the appeal, whereas additional grounds involve raising an additional legal or factual ground not included in the original Form 35.

The appellate authority also retains the power to call for further inquiry or direct the Assessing Officer to make further inquiry where required for deciding the appeal.

Income-tax Act, 2025: The appellate hierarchy and core procedural framework, including powers relating to additional grounds, remand reports and appellate proceedings, remain materially unchanged under the Income-tax Act, 2025. Pending appeals as on 1 April 2026 continue under the Income-tax Act, 1961.

Faceless Appeal Proceedings: Notices, Submissions & Hearing

How Does a Faceless Income Tax Appeal Proceed?

After Form 35 is filed, the appeal is processed electronically under the applicable faceless appellate framework. Under the Faceless Appeal Scheme, 2021, appeals are allocated electronically to the concerned CIT(A)/JCIT(A) through the faceless system.

The broad procedure is:

1. Electronic allocation of appeal – The appeal is assigned through the faceless system to the appropriate appellate authority.
2. Issue of notices – Notices seeking submissions, clarification or documents are communicated electronically.
3. Written submissions by appellant – The taxpayer files written submissions, supporting evidence, case laws and other documents electronically through the e-filing portal.
4. Further inquiry, where required – The appellate authority may seek further information or direct inquiry, including calling for comments from the Assessing Officer.
5. Additional grounds/evidence – Additional grounds or additional evidence may be considered subject to the applicable provisions and conditions.
6. Opportunity of hearing – The appellant may request a personal hearing through video conferencing. Under the current faceless framework, such a request is to be granted through video conference.
7. Appeal order – After considering the submissions and material on record, the appellate authority passes the appeal order electronically.

Is Personal Appearance Required?

Physical appearance before the Income Tax Department is generally not required in faceless appellate proceedings. Communications, submissions and documents are exchanged electronically. Where an appellant considers an oral hearing necessary, a request for personal hearing can be made and the hearing is conducted through video conferencing

Possible Outcomes of Appeal

After considering the facts, grounds of appeal, submissions and evidence, the appellate authority may confirm, reduce, enhance or annul the assessment or penalty, as permitted under the applicable provisions. Further inquiry or comments from the Assessing Officer may also be sought where necessary before deciding the appeal.

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Disclaimer:

The information provided in this article is for general informational purposes only and should not be construed as professional tax or legal advice. The applicability of tax provisions and appellate procedures may vary depending on the facts, tax year and circumstances of each case.

Reviewed By: Anil Agrawal, Chartered Accountant

Founder, EzyBiz India Consulting LLP

Last Updated: August 2026