Income Tax Appeal CIT(A) Appeal, ITAT Patna Bench & High Court in Patna

What is an income tax appeal?

An income tax appeal is a statutory proceeding by which a taxpayer challenges an order passed by an income tax authority before a higher appellate forum. The right of appeal is not a natural right; it is a statutory right conferred by the Income Tax Act, 1961 (and continued under the Income Tax Act, 2025, with the same appellate hierarchy).

The appellate hierarchy is sequential. A taxpayer must ordinarily exhaust the first appeal before the CIT(A) before filing a second appeal before the ITAT, and must exhaust the ITAT remedy before filing an appeal under Section 260A before the High Court. The Patna High Court has consistently held that where an alternative statutory remedy is available, the writ court will ordinarily decline to entertain a petition.

For Patna taxpayers, the appellate forums are the JCIT(A)/CIT(A) (and the National Faceless Appeal Centre for faceless appeals), the ITAT Patna Bench (which also hears matters through virtual hearings), and the Patna High Court.

Why an income tax appeal matters for Patna taxpayers

• An appeal is the only way to challenge an adverse assessment, penalty or rectification order on merits
• A timely appeal preserves the right to contest the demand at higher forums
• A stay of demand can be sought during the pendency of appeal
• A well-drafted appeal can result in relief without further litigation
• The appellate record becomes the foundation for any subsequent High Court appeal

Appeal against income tax order — which orders can be appealed?

An appeal against income tax order lies against specified orders under Section 246A of the Income Tax Act, 1961. The following table sets out the orders commonly appealed and the appropriate forum.

CIT(A) appeal — the first appeal against assessment and penalty orders

The first appeal in the income tax appellate chain lies before the Joint Commissioner (Appeals) or the Commissioner (Appeals) under Section 246A. For most taxpayers in Patna, the appeal is now processed through the National Faceless Appeal Centre (NFAC), with the order passed electronically. This is the CIT(A) appeal.

CIT(A) appeal procedure — step by step

The CIT(A) appeal procedure involves the following steps. The appeal must be filed electronically in Form 35 on the Income Tax e-Filing Portal.

1. Identify the order to be appealed and the date of service of the notice of demand.
2. Confirm the 30-day deadline from the date of service.
3. Prepare the statement of facts and grounds of appeal.
4. Compile the certified copy of the order, the demand notice and the appeal fee challan.
5. File Form 35 on the e-filing portal with all supporting documents.
6. Where the appeal is late, file an application for condonation of delay with sufficient cause.
7. Track the appeal through the NFAC portal.
8. Respond to notices for submissions and attend the hearing if fixed.
9. Obtain the CIT(A) order in Form 35 or the faceless appeal order.

CIT(A) appeal — Form 35 and documents

The CIT(A) appeal is filed in Form 35, accompanied by the following documents. The appeal must be submitted electronically unless the taxpayer is not required to file the return electronically.

Patna High Court on CIT(A) appeal — the authority must decide on merits

The Patna High Court has held in M/s Silverline v. The State of Bihar (Civil Writ Jurisdiction Case No. 14454 of 2024) that the appellate authority has a duty and an obligation to examine the grounds raised in the memorandum of appeal and decide the issue on merits, even if the appeal is heard ex parte. The Court quashed the appellate order and directed restoration of the appeal before the appellate authority.

The ITAT Patna Bench has applied the same principle. In Khushbu Singh, the Tribunal set aside a CIT(A) order passed ex parte on the ground of delay alone, without affording the assessee any opportunity to be heard, and reaffirmed that the right to a fair hearing is non-negotiable in tax appellate proceedings. The Tribunal has also condoned a delay of 590 days in Chanchal Kumar v. ITO, Ward-6(4), Patna, and a delay of 438 days in Rakesh Kumar v. ITO, Ward-6(2), Patna, where reasonable cause was shown.

Stay of demand during CIT(A) appeal

During the pendency of a CIT(A) appeal, the taxpayer may apply for stay of demand. The Assessing Officer or the Principal Commissioner may grant conditional or blanket stay during the pendency of the appeal. The stay application must be supported by reasons, including financial hardship and the strength of the grounds of appeal.

ITAT Patna Bench appeal — the second appeal before the Tribunal

Where the CIT(A) appeal is decided against the taxpayer, the second appeal lies before the Income Tax Appellate Tribunal under Section 253. For taxpayers across Bihar, the appeal is heard by the ITAT Patna Bench, which also hears matters through virtual hearings.

ITAT Patna Bench appeal procedure

The appeal is filed in Form 36, ordinarily within 60 days of communication of the order of the CIT(A). From 1 October 2026, memoranda of appeal must be presented electronically through the ITAT e-Filing Portal. The Tribunal may condone delay on sufficient cause.

What the ITAT Patna Bench has held recently

The ITAT Patna Bench has developed a body of authority directly relevant to Patna taxpayers. In Bibi Sahjadi Bano v. ITO, the Tribunal condoned both a 125-day delay in filing the Tribunal appeal and a 108-day delay in filing the first appeal, accepting the circumstances involving an elderly assessee's lack of literacy and computer knowledge, missed electronic communications, dependence on an internet café operator and health difficulties. The Tribunal applied the principle that justified delay should yield to substantial justice and remanded the matter for de novo assessment.

In Assessment on Dissolved Entity Is Void (BSEB, ITA No.14/PAT/2023), the Tribunal held that an assessment framed in the name of a dissolved entity is a legal nullity and quashed the rectification order under Section 154, relying on Supreme Court precedent that such orders are substantively illegal. The Tribunal also rejected an arbitrary 50% cash addition in a recent ruling and remanded the matter for cash book verification.

Condonation of delay before the ITAT Patna Bench

The Tribunal has power to condone delay on sufficient cause. In Rakesh Kumar v. ITO, Ward-6(2), Patna, the Tribunal set aside an ex parte reassessment and the rejection of condonation of delay, and remitted the matter to the Assessing Officer for de novo adjudication. The Tribunal has also condoned a delay of 11 days in Chandra Deep Kumar, observing that the explanation was reasonable and the delay was condoned in the interest of justice and fair play.

Patna High Court — Section 260A appeal and Article 226 writ

The Patna High Court exercises two distinct jurisdictions in income tax appeals: an appeal under Section 260A on a substantial question of law, and writ jurisdiction under Article 226 against arbitrary action.

Section 260A — appeal on substantial questions of law

An appeal under Section 260A lies to the Patna High Court against an order passed by the ITAT, but only on a substantial question of law. The appeal must be filed within 120 days of communication of the ITAT order. The Patna High Court has clarified that the scope of interference under Section 260A is confined to substantial questions of law.

In Rajnandani Projects v. PCIT, the Patna High Court held that the ITAT was not justified in reversing the order of the CIT(A) without demonstrating any perversity or misreading of evidence. The Court held that non-filing of an income tax return by the lender is not, by itself, sufficient to sustain a Section 68 addition where the loan is routed through banking channels and the creditor's identity is not in dispute. The Court observed that the ITAT's approach effectively required the taxpayer to establish the "source of the source" of funds, which is not contemplated under Section 68.

Article 226 — writ petition against arbitrary action

A writ petition may be maintainable where the assessment or reassessment action is without jurisdiction, violates natural justice, or is based on material that does not exist. The Patna High Court has quashed reassessment where the Section 148A(b) notice relied on incorrect bank reporting in Ankit Agarwal v. Principal Chief Commissioner of Income Tax, and where a Section 143(2) notice was not issued after a return had been filed in Vandana Kumari v. PCIT.

Alternative remedy and when the High Court will interfere

The Patna High Court has consistently held that where a statutory remedy of appeal is available, the writ court will ordinarily decline to entertain a petition. In Bihar State Hydroelectric Power Corporation Ltd v. NEAC, the assessee was relegated to the statutory remedy of appeals before the Commissioner (Appeals) under Section 246A and the Tribunal under Section 253. The Court has also dismissed income tax appeals due to an unexplained 8-month delay in DCIT v. Kumar A. S. Construction, emphasising that delay can be condoned only when the explanation is bona fide.

Income tax appeal time limits — all appellate windows

Each stage of the income tax appeal has its own limitation period. The following table sets out the time limits for filing appeals before each forum.

Condonation of delay

The CIT(A) may condone delay in filing the appeal beyond 30 days if satisfied that there was sufficient cause under Section 249. The ITAT may condone delay under Section 253. The High Court may condone delay in a Section 260A appeal on sufficient cause. In all cases, the taxpayer must file an application for condonation of delay citing reasons and supporting documents.

CBDT monetary limits for departmental appeals

The CBDT has set monetary limits for departmental appeals under Circular No. 09/2024 dated 17 September 2024. The department generally needs a tax effect of more than ₹50 lakh to appeal before the ITAT and more than ₹1 crore before a High Court. These limits affect the practical risk of a departmental appeal and are relevant when deciding whether to contest a matter further.

Frequently Asked Questions — income tax appeal in Patna