Income-tax appeals | Section 246A
Section 246A of Income-tax Act, 1961: Appealable Orders Before Commissioner (Appeals)
Section 246A identifies orders that may be challenged in a first appeal before the Commissioner of Income-tax (Appeals). This guide explains the covered orders, important exceptions, the appeal process and the relationship with newer appellate provisions.
What does Section 246A mean?
An appealable order is an order for which legislation grants a right of appeal. Section 246A sets out specified orders against which an aggrieved assessee, deductor or collector may seek appellate review. A Commissioner (Appeals) is a statutory first appellate authority; the office is distinct from the assessing officer who made the challenged order.
The appeal must ordinarily challenge an identifiable order and explain errors of fact, law or computation. A mere disagreement with an informal communication does not necessarily create a right of appeal.
Which orders are appealable under Section 246A?
| Category | Examples and statutory references |
|---|---|
| Assessment and tax liability | Orders denying the taxpayer's position on liability; assessments under sections 143(3) and 144; covered adjustments/intimations under section 143(1). |
| Reassessment and search cases | Specified reassessment or recomputation orders under sections 147 and 150, and covered search assessments under section 153A or the earlier section 158BC regime. |
| Rectification | Orders under sections 154 or 155 increasing assessed liability, reducing a refund, or refusing a claimed rectification. |
| TDS and TCS | Specified processing adjustments under sections 200A and 206CB; orders under section 201 or section 206C(6A). |
| Agency, succession and partition | Orders under sections 163, 170(2)/(3) and 171, subject to their statutory conditions. |
| Penalties | Specified orders under Chapter XXI, including relevant provisions such as sections 221, 271B, 271C, 271D and 271E, as applicable to the relevant period. |
| Special regimes and historic cases | Specified fringe-benefit tax, firm registration, search, transfer-pricing and other legacy orders included in the text of Section 246A. |
This is a practical summary, not an exhaustive substitution for the statutory list. The exact appealability of a particular order depends on its date, legal basis, relevant amendments and any applicable exclusion.
Important exclusions and alternative routes
Section 246A contains exceptions for certain assessments made pursuant to Dispute Resolution Panel (DRP) directions. Such matters may follow the statutory route to the Income-tax Appellate Tribunal rather than an ordinary first appeal to the Commissioner (Appeals). Appeals before a Joint Commissioner (Appeals) under Section 246 of the 1961 Act are also governed by separate jurisdictional and allocation rules. The authority shown on the relevant order or portal should be checked against the applicable law.
How to file an income-tax appeal
- Identify the order: note the section, date of service, assessment year or tax year, demand and issuing authority.
- Check appellate jurisdiction: determine whether the appeal lies to the Commissioner (Appeals), Joint Commissioner (Appeals), Tribunal or another authority.
- Observe the limitation period: under the 1961 Act, Section 249 generally provides a 30-day period measured from the applicable statutory event. Delayed appeals may be admitted for sufficient cause, subject to the law.
- Prepare Form 35 where applicable: state the facts, grounds of appeal, disputed amounts and supporting documents; pay the applicable filing fee and satisfy relevant tax-payment requirements.
- File electronically: use the official Income Tax e-Filing Portal where the applicable procedure requires online filing.
- Attend proceedings: respond to notices and provide submissions or evidence in accordance with the applicable appellate procedure.
For the 1961 Act, Section 249 governs the form and limitation of appeals, while Section 250 deals with appellate procedure. Separate rules may govern the electronic or faceless appeal process.
Legislative history and special provisions
Section 246A was inserted by the Finance (No. 2) Act, 1998 with effect from 1 October 1998. The supplied historical text records amendments relating to TDS and TCS, search assessments, fringe-benefit tax, penalty orders, and the transition of pending appeals. Its sub-sections (1A) and (1B) include deeming provisions for specified appeals against default orders under sections 201 and 206C(6A). Sub-section (2) deals with transfer of certain pending appeals to the Commissioner (Appeals), including the appellant's right to request rehearing in the circumstances described there.
The Finance Act, 2023 introduced the Joint Commissioner (Appeals) appellate framework in the 1961 Act. Later legislative changes and the Income-tax Act, 2025 must be examined separately when identifying the current appellate route.
Illustrative example
Suppose an Assessing Officer makes an assessment under section 143(3) for an assessment year governed by the 1961 Act and adds income the taxpayer believes is unsupported. Subject to jurisdictional exclusions, the taxpayer may challenge the assessment through a first appeal under Section 246A, using the applicable filing procedure and limitation period. The appeal should identify each contested addition and explain the factual and legal basis of the challenge.
Official legal references
- Income-tax Act, 1961 - Income Tax Department
- Income Tax Department e-Filing Portal
- Income Tax Department - legislation, rules and notifications
- India Code - Central Acts and amendments
Frequently asked questions
What is Section 246A of the Income-tax Act?
It lists classes of income-tax orders against which an eligible aggrieved person may appeal to the Commissioner (Appeals), subject to the applicable law and jurisdiction.
What is the usual deadline for filing a first appeal?
Section 249 generally prescribes 30 days from the relevant service or payment event, subject to the statutory rules and condonation for sufficient cause.
Is every income-tax order appealable under Section 246A?
No. Appeal rights depend on whether the order is covered by the applicable statutory provision and whether another appellate route applies.
Original statutory content and amendment notes
The following is retained from the supplied webpage as a historical reference, including older amendment notes and numbering. It should not be relied upon as a consolidated statement of law currently in force.
Expand historical Section 246A text and amendment notes
1 (1) 2 Any assessee or any deductor 3 or any collector aggrieved by any of the following orders (whether made before or after the appointed day) may appeal to the Commissioner (Appeals) against-
(a) 4 an order passed by a Joint Commissioner under clause (ii) of sub-section (3) of section 115VP or an order against the assessee where the assessee denies his liability to be assessed under this Act or an intimation under sub-section (1) or sub-section (1B) of 5 section 143 or 6 sub-section (1) of section 200A or sub-section (1) of section 206CB, where the assessee or the deductor or the collector objects to the making of adjustments, or any order of assessment under sub-section (3) of section 143 7 except an order passed in pursuance of directions of the Dispute Resolution Panel 8 *** 9 or an order referred to in sub-section (12) of section 144BA or section 144, to the income assessed, or to the amount of tax determined, or to the amount of loss computed, or to the status under which he is assessed;
10(aa) an order of assessment under sub-section (3) of section 115WE or section 115WF, where the assessee, being an employer objects to the value of fringe benefits assessed;
(ab) an order of assessment or reassessment under section 115WG;
(b) an order of assessment, reassessment or recomputation under section 147 7 except an order passed in pursuance of directions of the Dispute Resolution Panel 8 *** 9 or an order referred to in sub-section (12) of section 144BA or section 150;
11(ba) an order of assessment or reassessment 12under section 153A 7 except an order passed in pursuance of directions of the 13Dispute Resolution Panel 8 *** 9 or an order referred to in subsection (12) of section 144BA;
14(bb) an order of assessment or reassessment under sub-section
(3) of section 92CD;
(c) an order made under section 154 or section 155 having the effect of
enhancing the assessment or reducing a refund or an order refusing to allow the
claim made by the assessee under either of the said sections 15***9 except an
order referred to in sub-section (12) of section 144BA;
(d) an order made under section 163 treating the assessee as the agent of a non-resident;
(e) an order made under sub-section (2) or sub-section (3) of section 170;
(f) an order made under section 171;
(g) an order made under clause (b) of sub-section (1) or under sub-section (2) or sub-section (3) or sub-section (5) of section 185 in respect of an assessment for the assessment year commencing on or before the 1st day of April, 1992;
(h) an order cancelling the registration of a firm under sub-section (1) or under sub-section (2) of section 186 in respect of any assessment for the assessment year commencing on or before the 1st day of April, 1992 or any earlier assessment year;
16 (ha) an order made under section 201;
17 (hb) an order made under sub-section (6A) of section 206C;
(i) an order made under section 237;
(j) an order imposing a penalty under-
(A) section 221; or
(B) section271, section 271A, 17 section 271AAA, 18 section 271AAB, 19 section 271F, section 271FB, section 272AA or section 272BB;
(C) section 272, section 272B or section 273, as they stood immediately before the 1st day of April, 1989, in respect of an assessment for the assessment year commencing on the 1st day of April, 1988, or any earlier assessment years;
20 (ja) an order of imposing or enhancing penalty under sub-section (1A) of section 275;
(k) an order of assessment made by an Assessing Officer under clause (c) of section 158BC, in respect of search initiated under section 132 or books of account, other documents or any assets requisitioned under section 132A on or after the 1st day of January, 1997;
(l) an order imposing a penalty under sub-section (2) of section 158BFA;
(m) an order imposing a penalty under section 271B or section 271BB;
(n) an order made by a Deputy Commissioner imposing a penalty under 21 section 271C, section 271CA, section 271D or section 271E;
(o) an order made by a Deputy Commissioner or a Deputy Director imposing a penalty under section 272A;
(p) an order made by a Deputy Commissioner imposing a penalty under section 272AA;
(q) an order imposing a penalty under Chapter XXI;
(r) an order made by an Assessing Officer other than a Deputy Commissioner under the provisions of this Act in the case of such person or class of persons, as the Board may, having regard to the nature of the cases, the complexities involved and other relevant considerations, direct.
Explanation.-For the purposes of this sub-section, where on or after the 1st day of October, 1998, the post of Deputy Commissioner has been redesignated as Joint Commissioner and the post of Deputy Director has been redesignated as Joint Director, the references in this sub-section for "Deputy Commissioner" and "Deputy Director" shall be substituted by "Joint Commissioner" and "Joint Director" respectively.
22 (1A) Every appeal filed by an assessee in default against an order under section 201 on or after the 1st day of October, 1998 but before the 1st day of June, 2000 shall be deemed to have been filed under this section.
23 (1B) Every appeal filed by an assessee in default against an order under sub-section (6A) of section 206C on or after the 1st day of April, 2007 but before the 1st day of June, 2007 shall be deemed to have been filed under this section.
(2) Notwithstanding anything contained in sub-section (1) of section 246, every appeal under this Act which is pending immediately before the appointed day, before the Deputy Commissioner (Appeals) and any matter arising out of or connected with such appeals and which is so pending shall stand transferred on that date to the Commissioner (Appeals) and the Commissioner (Appeals) may proceed with such appeal or matter from the stage at which it was on that day :
Provided that the appellant may demand that before proceeding further with the appeal or matter, the previous proceeding or any part thereof be reopened or that he be re-heard.
727 Explanation.-For the
purposes of this section, "appointed day" means the day appointed by the Central
Government by notification in the Official Gazette.
--------------------
1. Ins. by Act 21 of 1998, s. 49 (w.e.f. 1-10-1998).
2. Subs. by Act 23 of 2012, s. 94, for "Any assessee aggrieved" (w.e.f.
1-7-2012).
3. Ins. by Act 20 of 2015, s. 64, (w.e.f. 1-6-2015).
4. Subs. by Act 23 of 2004, s. 53, for "an order against the assessee" (w.e.f.
1-10-2004).
5. Subs. by Act 23 of 2012, s. 94, for "section 143, where the assessee objects"
(w.e.f. 1-7-2012).
6. Subs. by Act 20 of 2015, s. 64, for "sub-section (1) of section 200A, where
the assessee or the deductor" (w.e.f. 1-6- 2015).
7. Subs. by Act 23 of 2012, s. 94, for "except an order passed in pursuance of
directions of the Dispute Resolution Panel" (w.e.f. 1-4-2013).
8. The words, brackets, figures and letters "or an order referred to in
sub-section (12) of section 144BA" omitted by Act 17 of 2013, s. 55 (w.e.f.
1-4-2013).
9. Ins. by s. 55, ibid. (w.e.f. 1-4-2016).
10. Ins. by Act 18 of 2005, s. 57 (w.e.f. 1-4-2006).
11. Ins. by Act 32 of 2003, s. 93 (w.e.f. 1-6-2003).
12. Subs. by Act 23 of 2012, s. 94, for "under section 153A" (w.r.e.f.
1-10-2009).
13. Subs. by s. 94, ibid., for "Dispute Resolution Panel" (w.e.f. 1-4-2013).
14. Ins. by s. 94, ibid. (w.e.f. 1-7-2012).
15. The words, brackets, figures and letters "except where it is in respect of
an order as referred to in sub-section (12) of section 144BA" omitted by Act 17
of 2013, s. 55 (w.e.f. 1-4-2013).
16. Ins. by Act 10 of 2000, s. 66 (w.e.f. 1-6-2000).
17. Ins. by Act 22 of 2007, s. 71 (w.e.f. 1-6-2007).
18. Ins. by Act 23 of 2012, s. 94 (w.e.f. 1-7-2012).
19. Subs. by Act 18 of 2005, s. 57, for "Section 271F" (w.e.f. 1-4-2006).
20 Ins. by Act 29 of 2006, s. 17 (w.e.f. 13-7-2006).
21. Subs. by Act 21 of 2006, s. 51, for "section 271C" (w.e.f. 1-4-2007).
22. Ins. by Act 10 of 2000, s. 66 (w.e.f. 1-6-2000).
23. Ins. by Act 22 of 2007, s. 71 (w.e.f. 1-6-2007).
General legal information, not a substitute for advice on a specific assessment or appeal.