ITAT Appeal Guide 2026: Fees, Form 36, Appealable Orders, Stay and Time Limits

The Income Tax Appellate Tribunal (ITAT) is an independent appellate tribunal that hears specified income-tax disputes, ordinarily after a first appellate order. This guide explains which orders can be challenged, how to file an appeal, the fees and deadlines, documentary requirements, hearings, stay of demand and correction of Tribunal orders.

What is the ITAT?

The ITAT is a specialist appellate body constituted under the income-tax law, with Judicial Members and Accountant Members. It normally acts as the second appellate forum after the Commissioner (Appeals) or Joint Commissioner (Appeals), but certain orders can be appealed directly. A regular division bench comprises one Judicial Member and one Accountant Member; statutory provisions also allow specified matters to be heard by a single member.

Orders appealable before the ITAT

For cases governed by the Income-tax Act, 1961, section 253(1) identifies the appealable orders. The principal categories include:

• First appellate and penalty orders: specified orders of the Commissioner (Appeals) under sections 154, 158BFA, 250, 270A, 271, 271A, 271AAB, 271AAC, 271AAD, 271J and 272A, and specified orders of the Joint Commissioner (Appeals).
• Charitable or religious institutions: specified registration or approval decisions under sections 12AA, 12AB and 80G(5), and decisions under section 10(23C)(iv), (v), (vi) or (via).
• Revision and penalties: orders under section 263, specified penalty provisions and rectification orders under section 154 amending those orders.
• Dispute Resolution Panel matters: qualifying assessment or reassessment orders made in pursuance of DRP directions, including relevant rectification orders.
• General anti-avoidance matters: specified assessments approved under section 144BA(12), and related rectification orders.
• Other specifically listed matters: orders under section 115VZC(1) concerning the tonnage tax scheme and certain historic search assessments.

An ordinary assessment order is not automatically appealable directly to the ITAT. Identify the exact order, its issuing authority and the applicable statutory appeal route before filing.

Departmental appeals and monetary limits

Under section 253(2) of the 1961 Act, the Principal Commissioner or Commissioner may direct an Assessing Officer to appeal against specified first appellate orders. CBDT Circular No. 09/2024 prescribes the following monetary limits for departmental litigation:

These thresholds govern departmental litigation policy, not a taxpayer's right to appeal. They are subject to specified exceptions under CBDT instructions, including Circular 09/2024 and Circular 05/2024. A case exceeding the limit is not required to be appealed merely because the threshold is met.

Tax effect broadly refers to the disputed tax attributable to the issues proposed to be appealed. Special computation rules apply to interest, losses, penalties and other categories. Different assessment years are ordinarily evaluated separately, subject to applicable instructions for composite orders.

Time limit for filing an ITAT appeal

For appeals governed by section 253(3) of the 1961 Act, the general deadline from 1 October 2024 is two months from the end of the month in which the appealable order is communicated. The earlier general rule was 60 days from communication. For example, if an order is communicated on 10 June, the ordinary two-month period runs from the end of June, subject to applicable procedural rules and holidays. Some special historical categories have separate rules.

Under section 253(5), the Tribunal may admit a delayed appeal or cross-objection where sufficient cause for the delay is shown. File a properly supported condonation request rather than assuming late filing is automatic.

Form 36, Form 36A and authorised signatures

Form 36 is the prescribed memorandum of appeal to the ITAT. It includes the particulars of the parties, the impugned order, the grounds of appeal and verification. Form 36A is the memorandum of cross-objections. The Income Tax Department's 2026 forms guidance identifies both forms.

The appeal must be signed and verified by a person legally authorised for the assessee, applying the relevant statutory verification provisions. Depending on the entity and circumstances, this may be an individual or properly authorised representative, a HUF karta or eligible adult member, a company's managing director or other eligible director, a firm's managing partner or eligible partner, an LLP designated partner or eligible partner, or an appropriate principal officer. Verify the specific rule before signing.

Cross-objections

Under section 253(4), a respondent may file Form 36A within 30 days of receiving notice of the other party's appeal, subject to condonation for sufficient cause. There is no filing fee for a statutory cross-objection.

Documents required with an ITAT appeal

Prepare the filing according to the Income-tax (Appellate Tribunal) Rules, 1963 and the applicable bench or e-filing directions. Common documents include:

• Completed and verified Form 36 with concise, numbered grounds of appeal.
• Copy of the order appealed against and proof of the date of its communication.
• Relevant assessment, reassessment or penalty order.
• Grounds of appeal and statement of facts filed before the first appellate authority, where applicable.
• Relevant directions under section 144A or of the Dispute Resolution Panel, where applicable.
• Original assessment order in reassessment matters, if relevant.
• Proof of payment of the prescribed filing fee and authorisation or power of attorney where required.
• Application for condonation, if the appeal is filed late.

Historically, paper filings require multiple sets of the appeal and annexures. Check current bench directions for paper copies, certified copies, upload formats and acknowledgment requirements. The ITAT e-filing practice note explains the original electronic filing framework; later operational directions should also be checked.

ITAT appeal filing fees

For cases under section 253(6) of the 1961 Act, the fee ordinarily depends on the total income computed by the Assessing Officer in the case to which the appeal relates:

Fee classifications and applicable provisions should be checked against the statute governing the relevant tax year. See section 253.

Paper book and supporting evidence

Rule 18 of the Income-tax (Appellate Tribunal) Rules, 1963 governs paper books. The parties may furnish a properly indexed and paginated collection of documents relied on, with copies served on the opposite party. The traditional rule requires filing at least one day before the hearing and proof that a copy was served at least one week before the hearing. Documents should be certified as true copies by the filing party, and delay may be excused where justified.

The Tribunal may direct the preparation of a paper book at a party's cost. Additional evidence should be separately identified and should not be treated as automatically admitted simply because it is included in a paper book. See the ITAT Office Manual and current bench directions.

Hearing before the ITAT

The Tribunal issues hearing notices, hears the appellant and respondent, and may grant adjournments for sufficient reasons. Parties may appear personally or through authorised representatives. If a party does not appear, the Tribunal may proceed according to its procedural rules and decide the appeal on the available record. A party prevented from appearing for sufficient cause may seek recall or restoration in accordance with applicable rules and judicial principles.

Additional evidence and grounds

The Tribunal is primarily an appellate fact-finding body. Parties cannot introduce fresh evidence as of right; under Rule 29, the Tribunal may admit or call for additional evidence where the legal conditions are met, including when necessary to enable it to pass orders or for substantial cause. Additional legal grounds may be considered subject to procedural fairness and an opportunity to respond.

ITAT orders and disposal of appeals

After hearing both sides, the Tribunal may pass such orders on the appeal as it thinks fit within its statutory powers. Orders are communicated to the parties. If bench members differ, the statutory majority and reference procedure applies. Under section 254(2A) of the 1961 Act, the Tribunal should, where possible, dispose of an appeal within four years from the end of the financial year in which it was filed; this is a statutory objective, not a guarantee of disposal by that date.

Stay of tax demand during an ITAT appeal

An assessee may apply for a stay of demand in connection with a pending appeal. Under section 253(7), the stay application fee is Rs. 500. Section 254(2A) of the 1961 Act governs the Tribunal's stay powers, conditions and duration, including the initial period ordinarily not exceeding 180 days and the statutory framework for extensions and aggregate limits. Current statutory payment or security conditions and binding court decisions must be examined before seeking relief.

A stay is not automatic on filing Form 36. The application should address the prima facie merits, financial hardship, balance of convenience, demand already paid and the taxpayer's undertaking to cooperate in early disposal.

Rectification of an ITAT order

Under section 254(2) of the 1961 Act, the Tribunal may rectify a mistake apparent from the record within six months from the end of the month in which the order was passed. Rectification is not a substitute for a full rehearing or an appeal on disputed merits. Where a proposed amendment increases tax liability, reduces a refund or otherwise adversely affects the assessee, a reasonable opportunity of hearing is required. The corresponding 2025 Act provision for Tribunal orders is section 363.

Official legal references

• Income-tax Act, 1961 - section 253 (appeals to the ITAT)
• Income Tax Department - limitation periods
• Transition between the 1961 and 2025 Acts
• CBDT Circular No. 09/2024 - monetary limits
• Income Tax Appellate Tribunal - official website
• Income-tax Rules, 2026 - official forms guidance

This article is general information. Appeal rights, time limits and procedural requirements depend on the order, assessment year, governing Act and current Tribunal directions. Verify the position before filing.