Income Tax Litigation
Appeals and representation before the Commissioner (Appeals) and the Income Tax Appellate Tribunal.
Who needs it
Taxpayers facing additions, penalties or demands they disagree with.
Tax disputes usually begin with a difference in interpretation, a gap in documents, a procedural lapse or a system-generated mismatch. What happens next depends on how carefully the case is built at each stage. We handle income tax disputes from the first notice to appeals before the Tribunal, with chartered accountants and advocates working together.
What income tax litigation covers
Any proceeding between a taxpayer and the Income Tax Department. Common triggers include:
- disallowance of expenses;
- income classified under the wrong head;
- TDS defaults;
- penalties and interest;
- differences between returns and the department's data (AIS, Form 26AS);
- additions in assessment, including unexplained cash credits and investments;
- search and survey cases;
- transfer pricing adjustments;
- revision orders by the Principal Commissioner.
The forums
| Forum | What happens there | Time limit to approach |
|---|---|---|
| Assessing officer / faceless assessment unit | Assessment, reassessment and penalty proceedings | As stated in the notice |
| Commissioner of Income Tax (Appeals) | First appeal against assessment and penalty orders, now largely faceless | 30 days from the order |
| Joint Commissioner (Appeals) | First appeal in specified smaller cases | 30 days |
| Dispute Resolution Panel | Alternative to first appeal for eligible cases, such as transfer pricing and foreign companies | 30 days from the draft order |
| Income Tax Appellate Tribunal (ITAT) | Second appeal on facts and law; the final fact-finding authority | Two months from the end of the month in which the order is received |
| High Court | Appeal on a substantial question of law | 120 days |
| Supreme Court | Further appeal | As allowed by the Court |
Why it needs careful handling
Missed dates or weak replies lead to penalties, growing interest, long litigation, recovery action including attachment of bank accounts, and in extreme cases prosecution. A case built on sound legal grounds, accurate documents and clear arguments at the first stage gives the best chance at every later stage.
Our services
Replies to notices
Notices under sections 139(9), 143(1), 143(2), 142(1), 133(6), 148A, 148 and others. We analyse the notice, prepare a factual and legal reply, submit documents, and track deadlines. A well-drafted first reply often prevents the dispute from growing.
Assessments
Scrutiny, reassessment, best judgment and faceless assessments: preparing documents, explaining transactions, setting out the legal position and replying on time, to prevent unjustified additions. See e-proceedings and notices.
Appeals
- Commissioner (Appeals): Form 35, statement of facts and grounds, written submissions supported by case law and evidence, and applications for additional evidence where needed.
- Tribunal: Form 36, grounds of appeal, paper books, legal research and representation at hearings, and cross-objections where the department appeals.
- High Court and Supreme Court: framing the substantial question of law and coordinating with senior counsel on filings.
Stay of demand
Applications for stay of demand while an appeal is pending, usually on payment of 20% of the disputed demand under CBDT guidelines, or a lower amount in appropriate cases.
Penalties and prosecution
Replies to penalty notices, applications for immunity under section 270AA, contesting unjustified penalties, and defending prosecution proceedings on grounds of reasonable cause, with compounding where available.
Refunds and rectification
Rectification requests under section 154, resolving CPC mismatches, following up refunds, and challenging adjustments of refunds against disputed demands under section 245.
Search and survey cases
Assistance after a search or survey: explaining seized material and statements, and assessments of search cases, to keep additions to what the evidence supports.
Settlement routes
Where suitable, alternatives to long litigation: the Dispute Resolution Panel, dispute resolution committees for small cases, and settlement schemes such as Vivad se Vishwas when announced.
Our approach
- Case evaluation: facts, past returns and notices, and any gaps or inconsistencies.
- Strategy: the law, precedents, strength of documents, risks and likely outcomes.
- Drafting: precise, reasoned, supported submissions.
- Deadlines: hearings, filings and limitation periods tracked to avoid defaults.
- Representation and follow-up until the matter is closed and any order is given effect.
Who we represent
Individuals and salaried taxpayers, NRIs and expatriates, startups and MSMEs, partnership firms and LLPs, companies, trusts and NGOs, high-net-worth individuals and professionals.
Common questions
Do I have to pay the demand while my appeal is pending?
Not necessarily. You can apply for a stay, which is usually granted on payment of 20% of the disputed demand, or less in some cases.
Can new evidence be filed in appeal?
Yes, in limited circumstances, by an application for additional evidence explaining why it could not be filed earlier.
How long does an appeal take?
It varies widely. First appeals can take one to several years; Tribunal appeals depend on the bench's list.
Section and form numbers on this page refer to the Income-tax Act, 1961 and its rules. From 1 April 2026 the Income-tax Act, 2025 applies, with new section and form numbers; the requirements described here are broadly unchanged. We use whichever numbering applies to your transaction date.
Documents to keep ready
- The notice, assessment order or appeal order
- Returns and computations for the years in dispute
- Earlier replies and submissions
- Books of account and evidence for the issues raised
- Any orders in your favour or against you in earlier years on the same issue