Call What is the Hierarchy of raising issues under Income Tax (i.e. AO/ITO/CIT(A)/ITAT etc.)
The Income Tax Department of India overlooks the administration of direct tax laws in the country, primarily focusing on Income Tax Act, 1961. It works under the Department of Revenue in the Ministry of Finance. Central board of Direct Taxes(CBDT) is the apex body that oversees the functioning of the Income Tax Department. It is responsible for policy making and administration of direct taxes in India. The Income Tax Department aims to ensure voluntary tax compliance, reduce tax evasion, and promote transparency in the tax system.
However, it is possible that taxpayers may face certain issues while complying with the direct tax laws such as receiving income tax notices, troubles in filing income tax return, excess deductions of taxes or disallowance of certain tax benefits etc. In this article, we will discuss, how these issues are solved in a systematic and hierarchical manner to address the problems of common taxpayers.
Structure of Hierarchy for Income Tax Department Officers:
Following lists consists of officers in Income Tax department ranging from top level authorities:
- Principal Chief Commissioner of Income Tax
- Chief Commissioner of Income Tax
- Principal Commissioner of Income Tax
- Commissioner of Income Tax
- Additional Commissioner of Income Tax
- Joint Commissioner of Income Tax
- Deputy Commissioner of Income Tax
- Assistant Commissioner of Income Tax
However, there are other officers as well such as Administrative officers, officer superintendent, support staff etc.
Structure of Hierarchy to raise concerns:
There is a structured hierarchy one can follow to raise their concerns. Here’s how it usually works:
Assessing officer:
An Assessing Officer (AO) is an officer of the Income Tax Department who is responsible for ensuring correctness of Income Tax Returns filed by the taxpayers in his/her jurisdiction. These officers can handle initial concerns of a taxpayer.
Income Tax Officer(ITO) or Assistant/Deputy Commissioner of Income Tax (ACIT/DCIT):
In case the issue is not resolved at the AO level, the taxpayer may raise their grievance with ACIT/DCIT to find a solution to their problem. Generally, after assessment or reassessment in case of an taxpayer, if the issue is not resolved then the next step shall be raising an appeal.
Appeal to the Commissioner of Income Tax (Appeals) [CIT(A)]:
When the taxpayers disagrees with an income tax assessment or any decision made by the Income Tax Department in India, there is a structured hierarchy for filing appeals. First Level of Appeal is when taxpayers are unsatisfied with the orders passed by the Assessing Officer (AO), he can file an appeal with the Commissioner of Income Tax (Appeals) [CIT(A)]. This is the first level of appellate authority. Time limit for filing an appeal shall be within 30 days of the service of notice or in case of order u/s 248, the date of payment of tax.
Appeal to the Income Tax Appellate Tribunal (ITAT):
Second Level of Appeal is when taxpayers are not satisfied with the decision of the CIT(A), he can further appeal to the Income Tax Appellate Tribunal (ITAT). Time limit for filing appeal under ITAT shall be within 60 days of the order passed by the Commissioner of Income Tax.
Appeal to the High Court:
Third Level of Appeal comes into picture when the matter involves a substantial question of law and taxpayer is aggrieved by the ITAT’s decision, he can file an appeal with the High Court within 120 days from the date of order received, along with a memorandum of appeal precisely stating therein the substantial question of law involved.
Appeal to the Supreme Court of India:
Final Level of Appeal is invoked when assessee is not satisfied with the High Court’s judgment, he can appeal to the Supreme Court of India within 90 days from the date of the High Court’s judgment. This is only allowed if the case involves a significant legal question that requires attention of the apex authority.
Conclusion:
In India if the issue pertains to income tax laws, there is a structured system in place to address these concerns. Starting with Assessing officers and ITOs to the Commissioner of Income Tax (Appeals) at the first level, the process allows taxpayers to escalate their grievances to higher authorities, including the Income Tax Appellate Tribunal (ITAT), High Courts, and ultimately the Supreme Court of India. In addition to appeals, you can seek rectification of mistakes by the AO or CIT(A) under Section 154 of the Income Tax Act. Additionally, you can request a revision of orders under Section 263 or 264 if there is a grievance related to the order.
About Author:
CA Chinmay Shirish Agate
Chinmay Agate is a Practicing Chartered Accountant having 4+ years of experience and expertise in the field of Direct Taxation and Auditing compliances. In the past, he worked in various CA firms and comes with wide industry experience from services, retail to manufacturing to trading where he has handled various complex assignments. He has keen interest in Forex and Derivative knowledge as well as fundamental analysis.