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The whole route, end to end.
From the first notice to the Supreme Court — what happens at each stage, how long you have, what it costs, and what is lost for good by missing a step.
In short
An income tax dispute in India runs through assessment, first appeal to the Commissioner (Appeals) within 30 days of service of the notice of demand (for assessment and penalty orders; otherwise of the order itself), second appeal to the Income Tax Appellate Tribunal within two months from the end of the month of communication, appeal to the High Court within 120 days of receipt on a substantial question of law, and finally the Supreme Court by special leave. The Tribunal is the last authority that decides facts: a factual point not properly taken and evidenced by that stage is ordinarily lost, because the courts above it hear only questions of law.
Stage by stage
Where a matter goes.
Assessment
Scrutiny under section 143(3), best judgment under section 144, reassessment under section 147, or a search assessment. This is where the record is built, and where most cases are in fact decided. Requests for cross-examination, for the material relied on, and for copies of approvals must be made here, in writing — a refusal is far easier to argue in appeal when it appears on the file.
Ends with an assessment order and a notice of demand under section 156.
First appeal — Commissioner (Appeals) or JCIT(A)
30 days from service of the notice of demand, under section 249(2)(b) — not from the date the order bears. Form 35, filed electronically. Fee of ₹250, ₹500 or ₹1,000 by assessed total income. Delay may be condoned under section 249(3) on sufficient cause, with no outer limit.
The appeal will not be admitted unless the tax due on the returned income has been paid — or, where no return was filed, an amount equal to the advance tax, from which the appellate authority may exempt the appellant on application for good and sufficient reason recorded in writing (section 249(4)). This is the stage at which additional grounds should be brought in properly under section 250(5) if something was missed.
Recovery is not automatically stayed. A separate application under section 220(6) is needed — the standard figure is 20 per cent of the disputed demand.
Second appeal — Income Tax Appellate Tribunal
Two months from the end of the month in which the order was communicated, under section 253(3) as amended with effect from 1 October 2024. For orders communicated before that date, the earlier rule of 60 days applied. Form 36. Fee of ₹500, ₹1,500, or 1 per cent of assessed total income capped at ₹10,000.
The other side may appeal too, and a respondent may file cross-objections on Form 36A within 30 days of receiving notice of the appeal, without fee.
The Tribunal is the final fact-finding authority. Everything above it is confined to questions of law. A factual contention not raised and evidenced by this point is, in practical terms, gone.
High Court
120 days from the date the Tribunal's order is received, under section 260A — from receipt, not from the date of the order. An appeal lies only if the case involves a substantial question of law; the High Court formulates that question when admitting. Delay may be condoned under section 260A(2A).
Supreme Court
By appeal under section 261 where the High Court certifies the case as fit, or far more commonly by special leave petition under Article 136 of the Constitution. Leave is discretionary.
Other routes
Not everything is an appeal.
Section 154
Rectification
For a mistake apparent from the record. Four years from the end of the financial year in which the order was passed — absolute, with no power to condone. Where an assessee applies, the authority must decide within six months from the end of the month of receipt.
Section 264
Revision in the assessee's favour
Application to the Principal Commissioner within one year of communication, or of otherwise coming to know of the order, whichever is earlier; delay may be condoned on sufficient cause (proviso to section 264(3)). Fee ₹500. Barred where an appeal is pending or has been decided, or where the appeal time has not expired and the right has not been waived.
Section 263
Revision against the assessee
The Commissioner's power to revise an order erroneous and prejudicial to the interests of revenue, exercisable within two years from the end of the financial year in which the order was passed. Not a route the assessee chooses — but one that reopens a matter thought closed.
Section 220(6)
Stay of demand
A pending appeal does not stop recovery. The standard deposit is 20 per cent of the disputed demand, per the CBDT memorandum of 31 July 2017. The Assessing Officer may refer the matter for a lower figure, and mechanical insistence on 20 per cent without considering the facts has been held unsustainable.
Section 254(2A)
Stay before the Tribunal
Up to 180 days, on depositing 20 per cent of the disputed demand or furnishing security of equal value, and not exceeding 365 days in aggregate. Stay application fee ₹500.
Article 226
Writ petition
Where the challenge goes to jurisdiction rather than merits — the validity of a search warrant, an order under section 148A(3) — 148A(d) in the text in force to 31 August 2024 — or an action wholly without authority. Not an alternative to appeal where an efficacious remedy exists.
The cost of a missed stage
What cannot be recovered later.
- Facts not proved before the Tribunal. The High Court and Supreme Court decide questions of law. A factual case not made by the second appeal is effectively over.
- Cross-examination not demanded during assessment. Raising it first in appeal, with nothing on the file showing it was ever sought, materially weakens the point.
- Evidence not filed at first appeal. Additional evidence before the Tribunal is admitted only in limited circumstances, and not as a way of curing inattention below.
- Rectification after four years. Section 154(7) admits of no condonation. Unlike an appeal, the door simply closes.
- Revision under section 264 once an appeal is filed. The two routes are alternatives; choosing one forecloses the other on the same matter.
- A jurisdictional ground never taken. It can often still be admitted under section 250(5) — but only if an application is actually made, and only while the appeal is alive.
Common questions
Frequently asked.
What is the appeal hierarchy under the Income-tax Act?
Assessing Officer, then the Commissioner (Appeals) or Joint Commissioner (Appeals), then the Income Tax Appellate Tribunal, then the High Court on a substantial question of law, and finally the Supreme Court. The Tribunal is the last authority that decides questions of fact.
Does filing an appeal stop recovery of the demand?
No. Recovery is not automatically stayed by an appeal being filed. A separate application under section 220(6) is required, and the standard figure fixed by CBDT is 20 per cent of the disputed demand pending disposal of the first appeal.
Can new evidence be filed at the appeal stage?
Only in limited circumstances. Rule 46A restricts additional evidence before the Commissioner (Appeals), and the Tribunal admits it only where the interests of justice require. Neither is a substitute for placing the material on record during the assessment.
Which Act governs an appeal filed now for an earlier year?
The Income-tax Act, 1961. Although the Income-tax Act, 2025 commenced on 1 April 2026, section 536(2)(c) preserves the 1961 Act for proceedings — expressly including appeals, whether pending or initiated afterwards — in respect of a tax year beginning before that date.