Section 249 of ITA, 1961 : Section 249: Form Of Appeal And Limitation

Explanation using Example

Example Application of Section 249 of The Income-tax Act, 1961:

Imagine Mr. Sharma received an assessment order from the Income Tax Department stating that his total taxable income for the previous year was assessed to be ₹150,000. He disagrees with the computation made by the Assessing Officer, believing that certain deductions were not properly accounted for, which would reduce his taxable income.

Mr. Sharma decides to appeal against the assessment order to the Commissioner (Appeals). As per Section 249(1) of the Income-tax Act, 1961, since his assessed income is more than ₹100,000 but not more than ₹200,000, he must pay a fee of ₹500 with his appeal.

The notice of demand for the tax based on the assessment was served to him on April 1, 2023. According to Section 249(2), he must file his appeal by April 30, 2023, which is within 30 days of the service of the notice of demand.

However, if Mr. Sharma was unable to file the appeal within the 30-day period due to a medical emergency, Section 249(3) allows the Commissioner (Appeals) to accept his appeal after the expiration of the said period, if convinced that Mr. Sharma had sufficient cause for the delay.

Lastly, as per Section 249(4), before filing the appeal, Mr. Sharma must ensure that he has paid the tax due on the income he reported in his tax return. If he had not filed a return, he would need to pay an amount equal to the advance tax payable.