How Limitation Works in a Tax Appeal
Limitation in a tax appeal is jurisdictional rather than procedural. An appeal filed beyond the prescribed period is not merely irregular — it cannot be admitted at all unless the delay is first condoned by the appellate authority. That makes the calculation of the last date the single most consequential step in the process, and it is calculated far more often from the wrong starting point than from arithmetic error.
An appeal to the Commissioner (Appeals) must be filed in Form 35 within thirty days under Section 249(2). Critically, the period runs from the date of service of the notice of demand, not from the date printed on the assessment order, and the two are frequently weeks apart. An appeal to the Tribunal must be filed in Form 36 within sixty days under Section 253(3), running from the date the order was communicated to the assessee. A cross-objection under Section 253(4) has thirty days from receipt of notice that the other side has appealed, and carries no fee at all — a right that is routinely allowed to lapse.
The two statutes take fundamentally different approaches to delay. Under the Income-tax Act, Sections 249(3) and 253(5) permit the appellate authority to admit a late appeal on sufficient cause with no outer ceiling, so a delay of years remains theoretically curable on a genuine explanation. Under the CGST Act the discretion is bounded: Section 107(4) permits a further one month beyond the three-month period and no more, and Section 112(6) permits a further three months. Once those periods expire the appeal is dead, and the Supreme Court has held that the general provisions of the Limitation Act cannot be used to extend them.
There is a further condition on a first appeal that catches taxpayers unawares. Section 249(4) provides that no appeal shall be admitted unless the tax due on the income returned has been paid. This is separate from any stay of the disputed demand — it relates to the admitted liability on the return, and non-payment is a complete bar to admission regardless of the merits of the appeal.
The filing fee is computed by reference to assessed total income rather than the amount in dispute. For the Commissioner (Appeals) the fee under Section 249(1) tops out at ₹1,000. For the Tribunal, Section 253(6) charges 1% of assessed total income above the second slab, subject to a ceiling of ₹10,000 — so the fee is capped long before the dispute becomes large.
Worked Example: An Assessment Order Served on 1 June 2026
An assessment order is passed with a demand notice served on 1 June 2026. The assessed total income is ₹9,00,000. The assessee wishes to appeal to the Commissioner (Appeals).
Frequently Asked Questions (FAQs)
Does the 30 days for a CIT(A) appeal run from the order or the demand notice?
From the date of service of the notice of demand under Section 249(2), which is what makes this the most commonly miscalculated date in tax practice. An order dated the 10th of a month may be served on the 25th, and the appeal period runs from the later date. Always take the date from the acknowledgement of service or the portal timestamp rather than from the face of the order.
Can a delay in filing an income-tax appeal be condoned?
Yes. Sections 249(3) for the Commissioner (Appeals) and 253(5) for the Tribunal both empower the authority to admit a late appeal where it is satisfied there was sufficient cause for the delay. There is no statutory outer limit, so even a substantial delay can be condoned — but the explanation must cover the entire period of delay and be supported by material, not merely asserted.
Is the position the same for a GST appeal?
No, and the difference matters greatly. Section 107(4) of the CGST Act permits the appellate authority to condone only a further one month beyond the three-month period, and Section 112(6) permits a further three months before the Tribunal. Beyond those windows the appeal cannot be admitted at all — the discretion simply does not exist, and the Limitation Act cannot be invoked to supply it.
What is a cross-objection and why does it matter?
Where the department appeals to the Tribunal, the assessee may file a cross-objection under Section 253(4) within thirty days of receiving notice of that appeal, raising grounds against parts of the order decided against them. It carries no fee, and it is treated as an appeal in its own right — which means it survives even if the department later withdraws. It is a valuable right that is frequently missed because the thirty days runs quietly while attention is on the department's appeal.
How is the ITAT filing fee calculated?
Under Section 253(6), by reference to assessed total income: ₹500 where it is up to ₹1,00,000, ₹1,500 where it is between ₹1,00,001 and ₹2,00,000, and above that 1% of assessed total income subject to a maximum of ₹10,000. A stay application carries a separate fee of ₹500. Note the fee turns on assessed income, not on the quantum of the addition in dispute.
What does Section 249(4) require before an appeal is admitted?
That the tax due on the income returned has been paid. This is distinct from the disputed demand and from any stay: it concerns the liability the assessee has themselves admitted in the return. Where no return was filed, an amount equal to the advance tax payable must have been paid. Failure on this count is a complete bar to admission, independent of the merits.
How long do I have to appeal to the High Court?
One hundred and twenty days from the date the Tribunal's order is received, under Section 260A(2). The appeal lies only on a substantial question of law — the High Court will not re-examine findings of fact, which is why the framing of the question is decisive. Delay is condonable under Section 260A(2A) on sufficient cause.