Program on Drafting of Ground of Appeal and Statement for filing of IT Appeal Virtual 14th May 2026

Hinzugefügt: 2026-05-15

[00:00:15]Yes, please. Please start the session already participate.

[00:00:23]>> Good evening everyone. I request everyone to place their right hand on their heart. Office please start ICA Moto.

[00:00:59]show me.

[00:01:28]do not question.

[00:01:34]Get that. Get that. Get that.

[00:01:39]Get that.

[00:01:41]Get that.

[00:01:49]Good evening all. Most respectful chairman of largest region of India, impactful, visionary and always believing in inclusiveness.

[00:02:07]CA Sorab Ajasar as under his leadership we are celebrating this 75th year of WRC.

[00:02:18]We are privileged that unique programs will be organized at WRC.

[00:02:25]Our simple calm compose vice chairman Cin Patil GI treasurer of the WRC learned and experienced CA Rakkesh Shasar learned faculty of the day Surat Singal GI and co-itor CA Ravisha all the participants we welcome you all and I request chairman CA Sorab Aira sir to share his words of wisdom.

[00:03:01]>> Good evening one and all.

[00:03:03]Thank you. Vishbai the dynamic secretary of WRC who is also serving to our profession on his birthday.

[00:03:11]So many wishes from our side.

[00:03:15]We do have vice chairman of WRC Sri Rakin Patel again who is leading so many digital initiative at WRC.

[00:03:24]Sierra Rakkesha the London personality who is taking lead in terms of financial activities and we have wonderful faculty today with us who is also very close friend Cura Singhal.

[00:03:38]Then we have a coordinator C R A R A R A R A R A R A R A R A R A R Aisha with us.

[00:03:41]Friends, this year we are targeting to have very intuitive experience for all our members. In this series, we are doing lot of virtual and physical program and we are trying to create an impact on each and every stakeholder of our profession. And while drafting this wonderful program on drafting of ground of appeal and statements for filing of IT appeals, we were having an impression in our mind that we should target our members from compliance to value creation, from compliance to consultancy and litigation is one of the area where I can say that we have a wonderful scope in terms of getting more and more value addition for our propation and that is why it in today's environment we are targeting all our members to drive for the value addition rather than on compliance and in the series today's program is very very important so I welcome you all in this wonderful program and this year we are targeting to create an impact where innovation is our core we are trying to innovate all our programs and in this program also we will learn that uh rather than having a knowledge of the session sections we can have a ground of appeals statement of facts which we can prepare in a different way and we can innovate ourself for the final outcomes in a different way. So these types of program we are trying with the innovation where we are targeting some or unique things for all our members to get benefit in terms of empowerment engagement and acceleration for their career. Then we are striving for change of mindset and that is why this type of program we are organizing as I have already highlighted that we want to drive this year for the betterment of our profession through the compliance to value creation shift which we want to take from all our members and then professional excellence any professional work which we are delivering the stakeholder are having different expectation because we are the part of ICI where the highest delivery of expectation is expected and that is why we are doing so many empowerment program training program where we can empower all our members to get best of the best professional delivery for their professional career and then adaptability again a very important thing which we want to drive because lot of technology initiative are happening across the world and ICI and WRC is leading for the AI space also so definitely we are looking forward to have more and more adaptability approach approach in terms of professional career from our members. Those are looking forward to have a shift in this technology development environment and then collaboration which is core and very near to my heart because I generally believe whatever we are doing we should connect collaborate and do network for that then only we can grow in future and that is why in collaboration we have come out with two major initiative one is CN access in which we are inviting all the small firms to have a collaboration with larger firm we have already received more than 100 entries from all our smaller firms. Those are looking forward to have a collaboration with larger firm or they can create a group in between them and definitely we very soon we will organize a physical program where we will have a wonderful interaction for the collaboration and this is completely aligned with the country's leadership also when honorable Narendra Modi said that we are looking forward to have more big forms from India then it is our responsibility in today's environment also we are following Modi GI in terms of saving the fuel and there are so many aspect. So similar way we have to understand our responsibility also for creating a larger firm from our country and that is why CNX is very very important. I request to each and every participant please do discuss amongst all your stakeholders for the CNXs and participate in this way. Then WRC corporate again a collaborative initiative at WRC where we are inviting members in industry in a different way because we generally have a problem statement that our members in industry are less connected in compared to others and that is why this year we are dedicating so many activities in a different way to target members in industry and I'm very happy to say that day after tomorrow we are having a wonderful session for the WRC corporate situ where we are inviting more than 300 CXOs to have a roundt discussion and that is why WRC corporate setu is very very important to connect and this is a great collaborative initiative and friends T stand for transformation as we are in the year of 75th for the WRC and I'm very happy and fortunate to represent such a great legacy in 75th year where we are seeking the transformative approach from all our members because our country is also transforming we are going ahead with the economy size of the 10 US uh economy US uh I can say 10 trillion US dollar economy size from the 4.3 US economy which we have and I personally believe in this transforming journey we can be the largest stakeholder in terms of getting advantage and that is why in this year we are focusing more towards the financial market BFSI to get more and more engagement ment from our members because we felt that our members have an equal opportunity in that area also which we generally seek in income tax and GST and that is the transformative approach which we are seeking from all our members and apart from that market on Monday we are discussing for all the financial and capital market opportunities on every Monday. Then we have a sustainable Sunday also with us which we have started in which we like to have more towards the society because giving back to society is very important and we being the chartered accountant we have a edge in terms of good lifestyle and definitely we should preserve for the future generation also and that is why we are doing lot of activity recently we had a session on carbon credit and complete carbon credit accounting offshore we have discussed in this sustainable series which we are doing at WRC on every Sunday. Friends, we have so many initiative all are listed at WRC website and we have announced our two signature program which is very very important to highlight. One is our DTRC that is the direct tax refresher course which we are doing in the month of June. 4 days, three are learning on each day we are taking care and this is the program for which we are always looking to have a larger participation and we are expecting more than thousand member in that on 19th 20th and 25th and 26th June we are having our DTRC at Yogi Sabagre and we are keeping all the relevant topic as we are shifting from income tax act 1961 to income tax act 2025 and definitely it is a greater opportunity for all our members to get update in terms of direct tax. Then again we have announced the largest ever program of the regional council that is the regional conference. On fourth and 5th December we are heading towards the geo convention center again a larger landscape where more than 100 speakers will be invited more than 70 exhibitors will there and we will have a great opportunity and interaction amongst more than 3,000 chartered accountant. So looking forward for your effective participation at WRC. Over to you Vishbai again for the further proceeding. Thank you for joining.

[00:11:33]>> Thank you very much chairman sir for those words of wisdom and under your leadership everything becomes mega. So your thinking your perspect and your attitude is always doing something greater for our membership at large. as you have rightly said today also that we are going to have three programs in Jio at BKC. So that is what it suggests that how you are also working for the membership and thank you very much for your presence your time and your dedication for the membership. Now taking it forward I request our vice chairman CA Rikin Patil GI to introduce our learned faculty of the day CA Suraj Single sir over to you Rikin by >> thank you so much to the most dedicated secretary of WC I think I'm saying dedicated because on his birthday also he's here with us so many many happy returns of the day and thank you for joining on your birthday also Uh again kudos to our young dynamic chairperson for such an excellent topic that is drafting of IT appeals.

[00:12:48]Generally we don't have such kind of sessions at WRC but today for uh all the members we are having such a special session to kudos to the chairperson also and today we have with us CA suraj singles who is a fellow member of the institute with over experience of 16 years in direct taxex advisory compliance and litigation. He is based at Mumbai. He specializes in handling corporate and non-corporate tax matters for corporates and HNI clients. Uh he is founder at SSVA and associates and is widely recognized for his expertise in direct taxex litigation and advisory services. He is also a speaker at professional forums, mentor for students and very actively involved for all the social initiatives as well. With that words, we welcome Surat sir with huge round of applause and back to you Vishb.

[00:13:49]>> Thank you very much uh vice chairman sir for those words and as you rightly said that u in drafting the appeal and chairman sir also suggests that we need to think because if you don't take other grounds then you miss the bus and that's what very much important. So again uh we are thankful to the chairman WRC and thanks for your kind wishes as well Rick by. So now taking it forward I invite CA Surat Singhal sir to take his session ahead. Over to you sir.

[00:14:33]>> Uh thank you Bisha G. uh I thanks all the dignitaries Sor Pajmira Rikin Patil G Rakkesh Shaji for giving me opportunity to deliver this kind of lecture. So uh visionary Sor Pajmira G who has uh this program was uh been planned one month before or President Narendra Modi G has said of few words to save energy and all that thing a few days before only but we are doing this thing one month before only to save that things and do the things in online mode.

[00:15:10]So now I just share with my screens. So everyone participation can So when this program was organized uh being planned by all the dignitaries of uh WC it was being told me to that uh it was planned in such a way that all the newcomers who want to come in this kind of field of drafting of appeal and paper book can come also into that kind of uh activities like say suppose of uh litigation matters pertaining to income tax regimes and everything.

[00:16:15]So now the drafting of appeal is becoming a crucial kind of things.

[00:16:21]Earlier uh who must be having aware of prior to faceless regimes drafting of appeal was also a crucial thing but it was in that kind of mode that certain things you can proceed because there was a physical meeting between the SEC representative and the CIT. So there was a physical meet. So you can explain your matter very easily to the CIT. So now the things are not in that kind of way.

[00:16:51]Everything is to be written into black and white and it is to be explained in that kind of way only to the CIT. Even though there is the option of uh video conferencing but that is also recorded everything is there in that kind of mode that you have to explain everything that every person every every CIT who is taking into that kind of consideration key he should get the necessary input of pertaining to case he should get everything into black and white so you can't do anything pertaining to explanation of your case into a oral hearing and all that thing.

[00:17:35]So now the drafting of appeal becomes a very important topic after the faceless regimes.

[00:17:44]So in today's topic we will cover what is uh there as per income tax 2025 and what is there as per income tax 1961 and how we have to go whether uh to decide whether to go for a appeal or not to go for appeal.

[00:18:02]What are the prerequisites of appeal?

[00:18:05]Then we will see that how the appeal memo has been drafted. Then a statement of facts which is a very crucial thing.

[00:18:14]Grounds of appeals and how the stay of demand is to be placed down. Additional evidence if there is required. So additional evidence how the additional evidence has to be taken care. How the condonation of delay if there is a delay in filing how that is to be taken care and lastly how the paper book written submission is to be placed before C. And if the time permits we will also discuss one of the live case where how the live case what is the assessment been taken care and how the drafting of uh grounds have been taken care.

[00:18:54]So moving forward so income tax act 2025 was introduced from 1st April 2026 onwards.

[00:19:09]So from that day all the new act is only been sorry from that day all the new act is only been new act is applicable from that particular day. So prior to this every assessment was taken care by 1961.

[00:19:32]So, so anyone can argue that thing that uh from 1st April if new act is applicable so everything is to be taken care by as per new act only. So in new act what they have done cleverly they have decided that thing that from 1st April uh 1st April 20 26 onward anything pertaining to prior the period of 2026 is going on that should be decided according to the income tax act 1961.

[00:20:07]So old act will be prevail for the assessment year up to uh 26 2017 for the tax year starting from 1st April 2026 onwards the new act will come into picture and this they have categorically written as a part of FAQ been stated by income tax department that this is the question area and this is the answer that uh from everything pertaining to prior to uh prior to uh prior to 31st March 2026 will be taken care as per the old law.

[00:20:53]So accordingly so the old income tax law will be prevail for next four to five years as good as what is going right now. So all assessment everything will be goes according to income tax act 1961 only.

[00:21:08]So new act will not come into picture.

[00:21:12]Hope this is clear to everyone.

[00:21:21]Okay.

[00:21:22]So now uh we will go and understand what is the appellet hierarchies of income tax. So let's say first is income tax uh assessment is been taken care by assessment order by assessing officer and then it goes if the uh any SSE is agreed by the decision then he can move to CIT appeal.

[00:21:44]So CIT appeal going to CIT appeal is just as a given as a requisite forum only whether the SSE want to go or not to go it is not binding anything.

[00:21:58]If he want to go he can go with the CIT appeal and if he is agreed by the order of CIT appeal also he can go with the IT also income tax appate tribunal.

[00:22:11]Income tax appate tribunal is the last forum for taking care of the uh fact related matters. If it is a legal related matters then SSC can move down.

[00:22:23]If he is uh agreved by ITA decision also he can move towards high court and high court supreme court which is the aex body and the supreme court decision becomes as a final and everyone has to follow that name.

[00:22:48]Now we will decide on this kind of thing whether whether to go for appeal or not.

[00:22:55]So like say suppose uh what is happen in normal day routine kind of thing s come to us and tell us that assessment order I doesn't want to pay the tax or I am in that kind of modem that is not correct he can state with this kind of fact so being as a professional what should we do first we we have to find out key whether the reason of initiating the assessment whether that is appeared or not and on that reason findings taken care by initiated by for the assessment and what is the past history of the SSE what is the past history of the issues also so history is very important whether the SSE is the regular compliance or he is trying to deviate with the And what are the issues what is taken care in this particular year for which the appeal is to be filed and what has been happened in the prior years also whether the prior years are also been as a part of assessment going on on the prior years also on the same issue that is also very important which is to be taken into consideration.

[00:24:16]Then we move towards whether the matter can be resolved through rectification under section 154 or not. So rectification under 154 is a alltogether separate proceedings. So appeal is something different. 154 is something different. So you can go with the both of the things. You can go either of the things either appeal not going into 154 going into 154 and not into appeal.

[00:24:48]But the uh rectification taken care in under section 154 will be only to the pertaining to mathematical accuracy pertaining to that will only been t taken care at section 154. No legal matters, nothing apart from that will be taken under section 154.

[00:25:12]So for 154 you can go up to a next four years kind of thing.

[00:25:17]After that for deciding appeal we can we have to also take into consideration the quantum of demand. Quantum of demand is also very important. Quantum of demand can also been taken care that my litigation cost will also impact to my quantum of demand or my litigation cost is coming as a higher. So I should go only with the only with the paying of taxes and other things. But you have to also simultaneously decide that the demand which has been raised there should there can be possibility of penalty also to be taken into consideration because once you accept the demand the penalty will also be initiated to you and the quantum of demand is also being taken into consideration with the fact that whether this matter is a ongoing matter or not. Let's say for a first year if the demand is for an example of 25,000 rupees. So this impact will be taken if we doesn't fight in this particular year then it will goes into next particular year also then it so if that will that is the course of action and if you are not deciding only you are deciding only on the basis of quantum of demand then that would not works. So even though the quantum of amount is lesser amount then also you will you should try to file the appeal.

[00:26:44]Once all these things have been taken care now you go on the crux of the matter whether the amount is debatable or not.

[00:26:55]Now what is the assessment core thing on that you have to decide whether this amount is to be debatable is to be arguable or not arguable. On this all things factor you finally decide whether to go for a appeal or not to go for appeal.

[00:27:21]So once you have decided with this kind of thing we have to go for a appeal then what course of action you have to take in this kind of thing what pre kind of checklist you have to prepare so do uh do do the your homework kind of things.

[00:27:39]So firstly what we have to do we have to dig down all the notices being served by uh assessing officer and what all replies are being given by us. So uh notice and reply correspondingly both should be taken into consideration. I would prefer we can create as a table of both of the things what has been notice been served and what reply we have served. The whole idea of doing such kind of things which all matters has been taken care by uh AO and demand has been raised on that particular matter. On that behalf you should have into consideration this questionary was asked into which notice and where we have replied to this particular notice in which reply we have given answer to the that particular matter. So prepare ID uh table and loop and this will help during the course of all CIT appeal proceedings.

[00:28:46]So now also take into consideration whether all notice are time barring by limitation or not whether the notice are being taken care by in the time barring matter or not.

[00:29:01]Now also take into consideration whether the 1432 notice has been timely served timely or not.

[00:29:10]We have come into such kind of things uh argued such kind of matters where 148 old regime and new regimes was there where the assisting officer has forgot to issue 143 1432 notice only where he has not 140 not issued 1432 notice in that course whole of the CIT appeal has whole has dismissed the order of AO and said that all of the uh assessment is bad in law.

[00:29:49]We have also to check whether the reason of reopening has been recorded or not.

[00:29:56]Reason of reopening has been recorded by AO. So we have to take into consideration that thing also whether the AO has taken a necessary approval from his higher authority before passing the order. This is applicable mostly in the cases of 148 assessments.

[00:30:16]Check whether the reasonable opportunity has been given to uh given to SSE or not.

[00:30:24]I have argued one of the matter where uh SSE was not been given as a reasonable opportunity and whole of the order was stated as a badon law. I just state you one of the example uh assessing officer has issued a notice let's say in the month of March when there is a time bar in matters so he has issued the notice stating that thing key SSC has to reply within coming 4 days and what was happened the a uh within a 4 days the SSC was proposed to be make a submission but the assessing officer he himself only passed the there was a physical hearing at that time. So phys after taking a physical hearing with SSE, the AO has passed the assessment order on uh within 3 days only and he has not waited for the fourth day of what is been stated in his uh no time period as stated in his notice. And when we argued in CIT appeals and this was been the CIT has dismissed this case stating on that thing the AO has considered a pre-notion factor only he has decided in his mind that this addition should be made. So he has not waited till the AO aoka respond only. So he has done all these things prior to the time period what he has decided. So the CIT has taken into consideration that this was a pre-notion fact. You have already taken into consideration that the amount should be added to the SSSE.

[00:32:09]So on that ground also you can save the uh SSE's request and that reasonable opportunity has not been given to the SSES like say suppose uh we have let's say AO has asked for SSE has asked for the video conferencing and the SSing officer has not given a video conferencing that is also a reasonable opportunity of not being given to the SS So we have also to check whether all the notice orders everything den signature everything are there or not. So now coming in this faceless regime this kind of errors are not been there. Mostly likely this kind of errors are not there. Earlier we were uh we were getting such kind of errors that day numbers is not there without signing notice or order has been given to the SSES all that thing.

[00:33:07]So now now check whether the all the reply has been given by the SSE has been taken into consideration.

[00:33:20]So we have gone through one of the case where the SSE has dropped down one of the reply only. So one of the reply one of the crucial reply he has not taken into consideration only and on that basis also the CIT has remanded back the case back to AO.

[00:33:46]I am giving uh apart from this all things I am also giving my experience of a live cases what has been there come across before me.

[00:33:59]Okay. So now coming to a next uh demand notice has been when demand notice has been served to the SSE. So serving of demand notice is very important because the periodicity of filing of appeal has been determined on the basis of serving of notice only not issuance of the notice. So when the notice has been served to the SSE. So on that basis only the uh 30 days criteria of filing of appeal is to be determined.

[00:34:32]After doing all this prerequisite you can go through your entire assessment order. I have seen such kind of things where what uh some of the profession what they used to do they go only with the assessment order only and not go with the entire filings and everything.

[00:34:51]So it is better to go and uh do your homework for entire other things and then proceed down with the assessment order. So where you can find out there are certain things which are not being taken consideration by the assessing officer also.

[00:35:08]So if we go only just by assessment order might be assessment order can have a multiple informations and all that thing but if we have the entire information in the assessment order then there is a mismatch of information which is not been taken care of uh in the assessment order that kind of findings will be not been uh arisen.

[00:35:30]Okay.

[00:35:33]So now moving to a certified copy of Chalan along with the appeal. So as per the rules it has been stated that we have to keep a certified copy of the chalan but right now uh we also do the same thing only we only keep a chalan copy which has been online mode so chalan copy and just state along with the appeal but it is stated as a part of uh rules that it should be certified self-certified by the sessse and that chalan copy is only to be attached with a form 35 additional evidence uh is also required.

[00:36:14]If it is required then that should also been provided to CIT appeal. So additional evidence are also very important. So we will keep all this additional evidence for our topic as a separate requisite. But additional evidence is a very big thing which if the uh if we have not taken care during the assessment proceedings and there are certain findings which are based on not been document which has not been uh taken consideration by AO then all that document can be formed as a part of additional evidence.

[00:36:52]In one of our case uh additional evidence uh is that thing the CIT has given us a bad scolding during the initial proceedings of uh when we were arguing the matters. The CIT appeal has given us a bad scolding on additional evidence kind of thing that uh this is a special window given to you or what why you have not submitted during the course of assessment why you have again come in a form of additional evidence.

[00:37:23]So this was a very bad experience to us also. So CIT has rejected all the additional evidence that you were given a sufficient time everything was there during the course of assessment why you are coming to again back to us. So I am giving that kind of experience also that additional evidence when we are drafting for additional evidence it should be in a very requesting kind of mode to CIT.

[00:37:47]It should not be that that kind of mode that you have to accept that thing.

[00:37:52]You got my point? Okay. So, so after doing all this homework kind of thing, so then we have to decide whether our appeal lies with CIT or it can go directly to IT certain appeals which goes directly with ITA and most of the appeals goes with CIT appeals only. So uh certain appeals like say suppose what we can say like uh trust registration been cancelled. So it is the order has been passed by commissioner only. So we we can't argue that thing into CITPS and we have to go directly to IT like transfer pricing matters uh issued by DRI. So if that is the course we have to go with a IT80 directly not with the CI tables.

[00:38:50]So these all things are mentioned there at section 246 that which all orders can be filed before CI tables.

[00:39:00]So now when we have to decided all these things now we have to go with that kind of things that how the appeal has to be filed. So once we we are there with that thing we have to pay with the fees. So fees for filing of appeal is like say suppose if your assessed income is up to 1 lakh rupees uh fees will be 250 rupees. If your assessed income is 1 lakh to 2 lakh rupees your fees will be 500 rupees. If your income is if your assessed income is uh up to two above two lakh rupees your fees will be 1,000 rupees. And this fee structure is going from a long long way. So now right now uh no one will go for below two lakh rupees arguing that kind of matter and just so this fee structure is very old. If there is a penalty related matters or any other matter like TDS and anything so it will pays as according to 250 rupees of chalan.

[00:40:05]Okay.

[00:40:08]So now coming to the heart of the um CIT appeals.

[00:40:14]So drafting of CIT appeals. So one we have decided that whether we have to file the appeal. Okay. What all prerequisites are there? We have arranged all the prerequisite and then we have decided that this now we have to go for a filing of appeal. So filing of appeal has been taken care by in form number 35. It is also said as a appeal memo.

[00:40:38]Appeal memo or memorandum of appeal.

[00:40:44]I have placed down whole of the form 35.

[00:40:47]The form 35 carries a certain uh regular kind of information which everyone can fill name, address, pan and everything.

[00:40:55]So there there's no challenge.

[00:40:58]So assessment year uh and financial year. So we have to place assessment year also for which the appeal is to file and financial year where there is a no assessment here kind of thing like say suppose certain application which are being rejected by a lower officer and for that matter we have to go for the CI CIT app and that course if the assessment year is not there we can only write the financial year in which the course of action has been taken place.

[00:41:36]Okay. So detail of appate order date and everything these are basic things everyone can fill. So nothing to worry.

[00:41:56]So there's a column of uh appeal related to assessment. If there is any appeal which is on which the amount is disputed demand which we have to write out so that amount has to be taken care. If the amount is of nil so we have to if the amount is let's say of loss return so the so amount is to be written as a nil.

[00:42:18]So negative figures are not to be greater like say suppose in some of the matter uh like if uh we have four different kind of demands out of which we are arguing only on three matters and one of the matter we are accepting down our demand.

[00:42:40]So so in that course what should be the disputed amount.

[00:42:46]So my question is let's say if the four four different kinds of demands are there taken in the assessment order. So out of four let's say on three we are arguing and one we are admitting the demand. So whether the actual amount of demand actual disputed amount is to be uh written only to the extent of where the dispute has been taken place not to the entire assessment.

[00:43:17]Okay.

[00:43:20]So these are certain fields which are required to be given in a form of questionaries. So whether the assessment or penalty order has been passed by assessment uh assessing officer is a is of central circle. So I hope everyone knows what is central circle.

[00:43:37]So where where the assessment and penalty is invoke or addition variation of the income has been made on the basis of seized or impounded material.

[00:43:45]So in one of the case where uh what the SSE or his professional has done he has written like say suppose u there was a seiz metal being taken at one of the SEC's vendor and on that basis the SEC assessment was being opened and he has said that my assessment was also based on the SE material only.

[00:44:13]So that is incorrect. The seized and impounded material should belongs to SSE only.

[00:44:20]Search cases are all also on only to the extent of SSE only. When the SS is party to the search then only here you have to write down yes. The corresponding entity should not write the yes. Like say suppose one of the entities is covered under search. So his corresponding entries uh entities are not to be uh write this as a yes disclosure.

[00:44:46]So someone has uh asked um what is the A of central circle.

[00:44:53]Central circle is the separate circle decided by uh department where the raid related or the higher value transactions oriented case are being taken care. So normal there is a jurisdictional assessing officer. Apart from that there are certain crucial things which the department thinks as these are the crucial nature of entities or part of raids also they are transferred to a central circle. they are not taken care by the jurisdiction of assessing officer. So that is called as a central uh circle whether the auditor uh order has been passed by the TDS authority. So TDS authorities have also to be taken into consideration.

[00:46:03]So next question is whether the SSE has paid the taxes in full of pertaining to income return has been filed. So if that is the case you have to write down what all things have been taken care during the course even if let's say my certain demand has been uh arisen and which has been adjusted through TDS only in that course also you have to file that thing that this is the my total amount of demand and which has been paid through in a form of TDS also.

[00:46:42]where no returns have been filed by the in that case also if certain amount has been paid in a form of advanced tax that is also to be returned along with the chalan details and everything.

[00:46:57]So if the uh appeal is related to tax deducted under section 195 of the act and bonded by the deductor.

[00:47:04]So anyone knows what is bonded by the deductor? bond by the deductor is if uh who has filed this 145 146 or the earlier form of 15 CA 15 CV in that we used to mention whether the amount has been grossed up or not gross up. So where the amount has been grossed up and the uh TDS liability is been taken care by the deductor only in that course of action only this point number 10 has to be taken covered. So where the like say suppose if we are making a payment outside India and we are deducting the tax of that particular remittance. So that will not been covered over here. here only the transaction which is bonded by the SSC like say suppose if I have to remmit $1,000 outside India and out of 1,000 I am not deducting any money off his even the TDS is applicable to him I'm not deducting him I am remitting the full amount and the TDS has been driven and paid by the deductor only the corresponding party has been paid full and let's say uh 100 rupees of TDS to be there. So my actual expenditure is of 1100 and I have remitted the amount of exact amount what is been according to the outside India agency's bill accordingly. So I have remitted the entire amount and the TDS is being born by the SSE only deductor only in that course. This is to be filled out.

[00:48:47]Now uh form 35 is to be carried with the statement of facts. So statement of fact we will uh discuss everything into detail. Additional evidence also we will covered into detail but additional evidence is to be how the additional evidence proceedings are to be taken care. So that we will that also we will discuss.

[00:49:12]So now grounds of appeals. So ground of appeal is a important factor and on that basis only your appeal has to be standby.

[00:49:21]Okay. So uh and uh if there is a delay in filing of the appeal then you can file a condonation request on that condonation request also you can get the uh you have to file it over here. So as a part of this thing and this forms complete over here. So everything which is to be there as a participation you have to be form create as a form of attachment. Now what all difficulties we used to face in this particular form like say suppose statement of fact should be uh not exceeding 1,000 words.

[00:50:00]So if your statement of fact should covered into 1,000 words only. If the statement of fact is more than 1,000 words then you have to uh create in that kind of form that it is created in a form of uh NXB attached. Same way every ground of appeal is to be covered within 100 words.

[00:50:20]So it is very difficult to cover every ground of appeal in 100 words. If you are exceeding 100 words. So you uh in a last line before the closure of your 100 words you uh as per the attached PDF or whatever you want to write and on that basis only you can write down the grounds of a okay uh and everything this is to be kept in a form of PDF as a part of attachment. You are not allowed to use a special characters like dash colon at the rate uh post of ES and everything.

[00:50:59]The overall limit of uh attachment of on to the appeal memo is of 30 uh 50 MB. So DAC you can use of authorized signary or EVC in the case of individual.

[00:51:13]Who is supposed to file the appeal?

[00:51:16]It is very important. So appeal is to be filed by the person who is filing the return. If the person is not filing the return.

[00:51:27]So uh person who who is supposed to file the return. So if let's say of a partnership firm a partner can file a return. So partner can file also the appeal. It is not necessary the same person has to file the appeal also. So partner can file appeal. It is that way.

[00:51:47]So what all things you have to keep as a part of supporting documents like say suppose assessment order notice under 56 or like say suppose uh even if you have kept a relevance of any reply so that is also to be kept as a part of attachment any case law which you are referring down so so that also you can keep as a part of um attachment. So this is very important that you have to most of the people that think CIT document why we should give him assessment order 156 notice.

[00:52:30]The whole idea of this all things is what that cited he doesn't have he has a online window of searching down the what reply you are given what notice was issued 156 words was there assessment order he has a open window but it should not be there that uh the assessment the appeal memo should cover everything. So once he is going through with the appeal memo, he should get the entire document.

[00:53:05]He should not dig down everything. The whole idea is this.

[00:53:11]So moving next uh email ID and mobile number. So every uh one has to take into consideration that email id and mobile number is to be because the case laws goes uh case goes for next multiple year kind of things. So many of the where we have found out that uh the email id was given of let's say any of the employee and the employee has left. Now the the tracing of email is very difficult. Now the things are there that every notice and everything comes on email and mobile and everything. So better to keep a email ID and telephone number that is visible for next years or if you want to keep director for the SSC that is also permissible.

[00:53:56]Okay. These are certain online requisites which is required to be taken into consideration. Okay. So now the basic crux of the game is drafting of the appeal.

[00:54:27]I'm not able to understand the question what has been raised by new or what we can do where we can take a question in the last stage kind of thing. So that it will be easy for everyone.

[00:54:39]So drafting of statement of fact. So first understand what is statement of fact. Statement of fact.

[00:54:48]Statement of fact is just you have to define your case. Everything pertaining to case history everything you should decide in that kind of way that reading to statement of fact okay no other document is required to be read and everyone can understand your case. This is the whole idea of statement of fact.

[00:55:13]I hope I am clear with this kind of thing.

[00:55:18]So statement of fact can contain many of the things or you can compressed in that kind of way that that is not a argument window kind of thing that is only representation of facts.

[00:55:36]So this is only to be taken care during when when during the course of when you are drafting for a statement of facts that my whole case should be understandable in that kind of way. Like say suppose if you have planned for your whole of the case and you are not getting a any of the other person like say suppose who is not relevance to the case. If he reads down your statement of fact he can understand your whole of the case. Same way with goes with the CIT appeal. CI appeal will not dig down each and everything. He will not go into that kind of thing. What is your assessment order reply like say suppose what we have taken care key what are the prerequisites of filing of appeal memo. So he will not go into that kind of everything. So your statement of fact should be sufficient enough. So there's no specific format of statement of fact. It is a very subjective.

[00:56:36]The statement of fact and case to case statement of fact should be fair enough to justify whole of your case. Brief history of the case starting brief history.

[00:56:55]brief history unwanted history you can write in a short and sweet kind of thing is into this kind of nature of business nature of business coing no there is no nothing argument kind of thing so doesn't create this kind of think that we have to disclose the entire briefing of the business of the SEC.

[00:57:30]So you have to decide what is relevance and what is not relevance.

[00:57:35]Normal course draft we take into consideration that brief history we used to define and after the brief history what all matter we have to argue just teach argue teach we take into consideration while drafting of appeal three things one is what issue was raised by AO a particular point during the source of his notices.

[00:58:07]What reply being asse how that thing even let's say if he is not satisfied with my answer if he is not in that kind of thing that he what he wants he's not get that particular document source of document kind of thing. So that is if there that is the things. So conclusion how he has derived to the conclusion of the matter. So when we are drafting for a statement of facts we take into consideration these three factors issue raise what reply we have given and what is the conclusion drawn.

[00:59:00]So on that basis only for every grounds uh every grounds we used to take into consideration that statement of fact should cover everything and this will explain my matter of the things also. Certain times it is found that certain information has been not taken into consideration by uh assessing officer. If there is a missing information that also you have to covered as a part of statement of fact.

[00:59:30]If the procedure has been missed certain times the procedure has also been missed by the assessing person like say suppose draft assessment order or assessing officer draft assessment order issue.

[00:59:45]The procedure has been missed procedure has been missed in that also you have to mention as a part of statement of facts.

[00:59:56]what all points we have to consider uh while drafting for the statement of facts. Statement of facts should I have explained?

[01:00:03]>> Sir, sorry. Sorry to disturb you in between. Uh uh are we going to take the questions of the attendees later on or in between session only you are looking it?

[01:00:16]>> You can tell how to to move. I can take it at last also.

[01:00:21]>> Okay. because uh if your chat box is open the few participants has raised some questions.

[01:00:28]>> Okay.

[01:00:31]>> So one of the participant Akshai has uh asked that what do you mean by unable unablement of communication window.

[01:00:42]>> Yes that I also not able to get what he is trying to make out. What we can do we can take a questions at the last. So everyone get this kind of thing.

[01:00:53]>> Sure no problem sir. No problem.

[01:00:55]>> Everyone get the entire uh proceedings of >> yeah the presentation >> request I request all the participant to put their questions uh in the chat box at the end we will take all the questions.

[01:01:10]>> Okay.

[01:01:11]>> Yeah.

[01:01:14]So drafting of a statement of facts certain things we have to take into consideration that it should cover only the fact. Fact means that this is to be only been taken care by the during the course of drafting of statement of fact that only the fact related matter is to become not the ground related matter. Ground means there you have to argue the matter. It is not a window of argument.

[01:01:47]Okay. Statement of fact should be clear enough and it should not be an ambiguity or vague kind of things. Okay. Statement should should not contain any law point kind of things. It should be fact only.

[01:02:01]Fact means key to present your case.

[01:02:06]Statement of fact should carries the fact which is missed by also by AO.

[01:02:11]Certain facts which are missed by AO that is also to be taken into consideration and we have to note down this thing that this is statement of fact is only been CIT appeal only we have to present the statement of fact at a later forum like IT and high courts you doesn't have to prepare a statement of facts. So this is a last window for pre presenting and this statement of ads continue at the higher hierarchy of the litigations also where there is a violation of natural justice also that is also you can mention in your statement of facts also.

[01:02:56]Someone has asked what is the procedure of condonation of delay. So uh so we will cover that part also in the later form uh part of this presentation. Okay.

[01:03:13]So now coming to grounds of appeal. Grounds of appeal. Now what is grounds of appeal? Statement of fact I have told you statement of fact is what?

[01:03:41]So if anyone is drafting statement of fact that course of action he should take into mind.

[01:03:48]Now what is grounds of appeal?

[01:03:53]So grounds of appeal is a thing argument.

[01:04:04]What is the points on which argument is to be taken care that is called as a grounds of of income tax point of view on that also we can take as a part of a grounds of appeal. So this is the place where we have to what argument we are placing before CIT on this argument matter only whole of the CIT appeal written submission and everything will proceed down.

[01:04:49]So grounds of appeal this is not a benchmark kind of things but uh broader terms we have defined the grounds of appeals into a three broader criteria.

[01:05:00]One is a factual grounds, one is a legal ground and third is a technical ground.

[01:05:06]Now what is the factual ground? Factual ground means which are based on a fact. So nothing to do anything pertaining to your uh let's say finding of the by the SSE or certain things which are factually incorrect like say suppose one of the submission SSE has forgot to assessing officer has forgot to take into consideration or he has write the incorrect figure while making the addition.

[01:05:38]Okay. Details not submitted. Okay. what we have preferred that was not taken. So these are called as a factual ground.

[01:05:50]So uh now coming to a legal ground. So what is legal ground? Legal ground is like say suppose where there is a conceptually CIT appeal is saying something uh AO is saying something different and we are legally on the behalf of income tax act.

[01:06:12]We are saying something uh separate thing and we are both being uh having a different kind of opinion that is called as a legal ground.

[01:06:25]legal ground let's say charging of incorrect section uh se section accounting method misinterpretation of financial by the so these are all covered as a part of a legal grounds so now third criteria of defining the ground is on technical ground where the technical expect is not been taken into cover like suppose certain procedure part which is to be complied by the assessing officer but he has not followed that procedure like notice timely was not served.

[01:07:02]So draft notice was not issued.

[01:07:06]1432 notice was not been served. So these kind of things are which are technical procedural part of errors are there and mark my words on the basis of technical grounds also you if you find certain technical related grounds in your particular assessment the whole of the proceedings can be reversed down only on the behalf of technical grounds also.

[01:07:31]So broadly we have defined all our grounds into these three criterias.

[01:07:38]So there is for so right now for defining a ground also there is no specific kind of thing that this is to be followed. It is also very subjective matter. So everyone has to depending upon the case to case but I am giving a highlights kind of things how the things is to be drafted. what course of action we have to take into consideration while making a drafting of grounds of appeal.

[01:08:03]So grounds of appeal should be precise, compressive, clear, consecutively numbered. Every ground should be consecutively numbered and you can also give a subnumbering also. Subn numbering means like say suppose ground a you have written and from apart from that you can also write a1 a2 a3 that now how this can be possible like say suppose one of the addition is been made by the ao and that particular addition we are dissecting into a different modus of the things like we are dissecting that thing into different sections different present uh part of the matters that this addition should not be made because of so and so reason. This addition should not be made because of so and so reason.

[01:08:52]So that you can covered as a part of a subnumbering kind of thing.

[01:08:59]So your ground of appeal ground should not be in general in nature. It should be a very specific to create the argument core of the argument of the matter.

[01:09:11]For every addition it should be a separate ground. You can't combine m uh one or two additions into one ground. So it is not a uh um appropriate way of drafting.

[01:09:25]If you are referring down to any jurisdictional pronouncement, any of the case law where you are referring down, you have to write the full citation of the judgment.

[01:09:36]Okay. So the you have to also take into consideration that your preference of ground is also been mattered. Where I am saying where you put down a subn numbering kind of thing there the preference of ground is also been mattered like say suppose one addition you are dissecting to different clauses different sectors. So in that case the preference of ground which ground is been represented as a priority basis. So that is also taken into consideration.

[01:10:10]So ground should not be in a repetitive nature kind of things. So it should not come uh again and again. You have to come out with a same point of view.

[01:10:21]Avoid using a long sentence kind of things. Okay. Try to find out hidden grounds in the assessment order. Hidden grounds means uh the grounds which are not been that kind of things like suppose what I have said technical grounds certain things which has not been uh primarily visible to the uh any of the things you this comes only with the set of readings set of uh assessment orders and what all submissions you have made what all notices so on that basis if you can find out certain hidden grounds also that is also you can write corresponding grounds are to also to be taken into consider. What is corresponding grounds? Like say suppose uh certain addition was made on that addition the interest has been charged to me. Okay.

[01:11:11]Penalty has been initiated. So that kind of ground also you can take into things.

[01:11:19]At the end you have to mention that you can create a right to reserve to make a addition, alteration, amendment, withdrawal of any of the your the kind of thing uh grounds that at any point later point of time if you want to make a addition, alteration, amendment or withdrawal of any grounds.

[01:11:49]One of my junior has asked me during this course that uh sir if you have written everything right now only so why you want a addition of ground and later stage kind of things. So everything is written right now and there no new addition will be taken after to that. So how that addition so now you want to create a new window for a new addition of ground.

[01:12:18]So then we have answered him that let's say if addition of ground can be taken place let's say if any supreme court judgment came in favor of SSE on that behalf also if you want to create addition of ground or new fact have been came into picture on that behalf we have to came into new additional ground so that can be also be a possibility of so every time when you are drafting your grounds of appeal so uh you have to create a last window open to make a addition alteration amendment or withdrawal of the grounds.

[01:12:55]Okay.

[01:13:02]So legal term to improve.

[01:13:06]So now if you want to improve down what is to be written as a drafting. So what should be taken care? So I have given certain set of example. It is just in a form of example only. So where we can do this kind of things. So it creates a more impactful kind of uh drafting.

[01:13:30]So like say suppose uh in normal CIT appeal proceeding we never say assessing officer. We always used to say learned assessing officer. Learned assessing officer means that he is also learning and we are also learning. So the even if he has make a mistake in making the addition then also he is also learning. We can't say that thing he he has done very wrong with us. So we have to always say in a form of learned assessing officer. When we represent to CIT appeal we normally used to say lordship or your honor kind of way. So the way we represent CIT appeal. So we normally use this kind of words.

[01:14:21]So normally uh during the course of assessment we say every time to the party as SSE but during the course of CIT appeal we doesn't represent the party as SSE we represent him as a appellet he is filing the appeal so we normally represent him as a appellet we use the word of agrieved by the decisions agrieved by the decision uh In the sense of we are not accepting with the decision what is being taken care. We normally start down with the uh this kind of thing that on the facts and circumstances of the case facts circumstances of the case on that behalf we write down the grounds of appeal.

[01:15:11]We normally write legally ered or gravely ered. Legally uh legally the assessing officer is incorrect or gravely ered when we use that he is totally incorrect.

[01:15:32]Hope I you got the difference between both of the word. Uh legally incorrect means only to the extent of yes the way the authority or way the act has been saying is not not correct to that extent or gravely ured means he's totally incorrect in coming out to his conclusion without prejuditial uh we used to write during the course of uh grounds of appeal where Yes, the lordship spelling is incorrect.

[01:16:10]I completely agree on that part. So without predication without impacting the other arguments we are presenting this argument.

[01:16:20]So we normally also write even assuming without admitting certain things we are not admitting but even though if AO is saying we are admitting down that thing and on that behalf also if we are arguing that thing so that is also to be written that also we used to write as a part of our grounds of so these are just as a part of verdicts what verdicts you have to do taken into care while um drafting grounds of appeal.

[01:16:56]So now coming to a additional evidence which is as a part of rule 46A.

[01:17:04]So what is additional evidence like say suppose certain things which was supposed to be presented before the CIT uh before the assessing officer but which was not presented during the course of uh CI assessing officer. So that course of things we can present before CIT appeal but that should be always formed as a part of additional evidence. Why it is called as additional evidence? It is stated that CIT will not look into any of the new document.

[01:17:35]Everything which is there as a part of your during the course of assessment proceeding CIT will only go through with that kind of thing. If new facts are to be taken into consideration that all form become form part of a additional evidence.

[01:17:51]If we file in a form of additional evidence, the whole of the set of document goes back to the uh assessing officer and on that behalf the assessing officer prepare a remand report and that again come as a part of part to the CIT appeal and on that CIT appeal with that remand report the whole of the proceeding of the CIT appeal goes on. So this is the whole uh scenario of additional evidence.

[01:18:22]So now for additional evidence there is no set of things like say suppose no questionary will be raised by assessing officer that these all document has been required. So being as a SSE being as a professional we have to decide what all document was kept as a missing and which we want to present before a CIT bill. So everything which is missing during the course of assessment proceeding so we have to present before a CIT appeal and there will be no questionary nothing like that.

[01:19:03]to decide.

[01:19:10]So while providing as a part of additional evidence earlier uh if prior to uh this um faceless matters uh what we used to do we used to provide additional evidence uh during the course of our finding also uh during the course of hearing also but now right now additional evidence should also So become part of your audit memo only and audit memo should cover everything pertaining to additional evidence. We have seen certain other uh certain other addition or CIT appeal dismissing the additional evidence only on the fact that while filing the audit memo you have selected as no to the additional evidence. If you have selected as no to the additional evidence at later point of time you can't give as additional evidence. So CIT appeal is right now taking as a abandoned view on the all these things.

[01:20:14]Okay. So so how this additional evidence is to be taken into consideration what you have to do you have to prepare a proper index of what all document you are placing down as a part of additional evidence. Highlight the key portion of your uh documents. You have to mark down that these are the uh things which was not taken during the course of assessment. You can highlight all those things.

[01:20:41]If you are referring down to a case law, you have to prepare a extract of the case law and that also you have to place down as a for part a form of additional evidence. You can also prepare a synopsis of the faceless abuser.

[01:20:59]This is synopsis of the additional evidence you also you can prepare like suppose what all document you are placing down you can create a summary kind of things and that also you can put down as a part of uh additional evidence.

[01:21:20]So all this additional evidence will goes back to the AO. So you have to take into consideration that this paper book is to be defined well uh appropriately so that it will and along with that you prepare a covering letter asking a uh CIT requesting a CIT to additional evidence. what I have said you earlier also additional evidence is not a binding on the the CIT but certain times CIT appeal can also dismiss and not accept that thing and so you have to very polite in the writing a letter to for a acceptance of additional evidence document what I have stated you know earlier one of the case where the CIT appeal has rejected our additional evidence only on the ground that uh this additional evidence window is not a open window for you that you come out to with CIT and G when the um and this was happened during the when I was started my practice during the early initial years and CIT has rejected everything.

[01:22:28]This is not the open window. you you are coming out to submit a additional document why why you have not given during the course of assessment proceedings and that was becomes as a very uh crucial learning for us. So that key additional evidence documentation is to be filed appropriately with a very polite nature of uh in a letter proceedings that uh to kindly accept down the additional evidence document.

[01:22:56]Okay.

[01:23:02]So condonation of delay. So some of the have a um questionable on condonation of delay. So if so 30 days of time period is there for data filing or serving on the notice.

[01:23:27]So you have to mention if there there is a delay you can file for condonation of delay but you have to specify the reason behind it why there was a delay even the delay is for one day also you have to specify the reason and the condonation of delay is also to be asked in a requisite kind of mode. it should not given as a right.

[01:23:50]So CIT appeal has to uh create in a requisite kind of uh window that I am allow me to if there is a delay of five 3 days um 10 days 1 month any of the day. So uh that should be in a very requesting mode.

[01:24:10]The court has also taken into certain decisions where the condonation of dealer has been taken up to 18 months kind of period to that extent also but there should be a valid reason behind it without a reason. This should not be occurrence.

[01:24:28]The CIT appeal also has a power to reject the condonation of delay if if there is no appropriate reason behind it.

[01:24:42]And if the condonation of delay has been rejected the whole of the appeal has been dismissed. If CIT appeal reject your below request the whole of assessment proceedings is also been rejected.

[01:24:58]Okay.

[01:25:03]Now stay of demand.

[01:25:09]So once this CIT appeal everything has been filed along with that CIT appeal you have also side by side you have to give a stay on demand. Demand has been raised by assessing officer. So you have to kept uh stay of that demand that keep that thing into abance till the date of final uh decision by the appate authorities. So you have to keep uh that thing before assessing officer assessing officer can ask because as per CBD uh CBD circular uh we have to pay up to the demand up to the 20% of the appeal filing fees to the uh appeal demand and this 20% this is a CBDT circular uh CBD office memo is there earlier it was 15% which has got increased to a 20% So this uh demand this has been uh we have to pay as a part of uh protest money before the authorities.

[01:26:20]CIT appeal also can intervene in this state of demand also but normal course CIT appeals doesn't intervene into all these things. Yes, it is mandatory to pay that thing of 20% of demand but uh to the extent of 20% it is mandatory and there is a internal memo being circulated among the uh assessing officers that to the extent of 20%. You can argue that uh this 20% also to be reduced down and that thing that can only be permissible if um by going to a higher authority like suppose we can go to a high court and ask for that kind of remedy but 20% uh in present scenario uh AOS are asking to pay to the extent of 20% %. So below 20% they will not admit to the appeal and they can go for recovery kind of things also if you have not paid to the extent of demand to the 20%. Even AO has a power to increase down that 20% also if the AO feels that thing that SS BJ in one of our case what the SS has done he has sold there is a private limited company and the SS there is huge demand on the SS and SSE has sold down all his asset and how he has managed and done all that thing and so the even if the liability arise on him the company becomes as a shell company and doesn't have to pay that thing. If the SSE get that kind of feeling that the SSE will not uh in that kind of way to pay the entire amount demand, he can also go for rejection of stay demand and ask the SSC to pay the entire amount. But he should have a valid reason behind it otherwise 20% of demand he has to pay.

[01:28:37]If we want to reduce that thing, we can go to a uh higher authority like say suppose high court we can go go as a part of red petetition kind of thing.

[01:28:53]After all these things once you have filed down all your CIT appeals with the ground statement everything then your uh this thing of written submission has been started.

[01:29:12]So written submission is what or we can call as a paper book when the actual argument begins.

[01:29:20]So this was only form 35 is only to the extent of filing of appeal that covers is a part of grounds of appeal, statement of facts and everything. So written submission is the actual argument where you can dissect your every ground with a detail extension kind of things. What you want to say you can write down.

[01:29:46]So the so written submission is just every ground you have to represent your case. For every ground what you ground is there you have to represent what you want to say as a part of things.

[01:30:08]Written submission uh written submission of actual um so written submission is the actual window of argument where you can state the entire case before the CIT appears.

[01:30:20]Paper book should be exclusive to cover the entire issue as well as readable and retain in the interest of the to it.

[01:30:29]Your paper should book should be exclusive to cover the entire issue.

[01:30:34]Okay. You can prepare a synopsis a summary of your paper book and you can place down and you can also create a index with a paper numbering. So paper numberings becomes as easy to take a reference when there is a CIT appeal proceedings kind of things.

[01:30:55]You can also refer to a case loss where you have to mention everything in citation and you can prepare case law summary also and you can place down that thing also.

[01:31:11]So now this paper book on the behalf of that paper book uh CIT appeal also you should also note down that thing that CIT appeal also has a power to enhance the demand also. So you have to create that kind of thing while taking care of uh of your paper book that every things is to be written which are favorable to the SSC and which doesn't create a negative impact to the you see now faceless appeal what is the practical issues which has been faced So your paper book is to be uploaded only when the CIT appeals. Open the first hearing notice window and then only you can upload the your paper books kind of things. So after that you cannot open the paper book window. Prior to that you cannot place down your paper book and even it is seen in some of the cases where um CIT appeal window has not been um permitted to um less CIT appeal window has not been open for next 2 three years. So you cannot place your paper windows um at that point of until that point of time.

[01:32:46]So earlier we were also facing this kind of thing that portal u there's a po portal there's a glitches are also there certain notices certain other things which becomes as a disappear. So it has always been stated that thing in you create as a acknowledgement in everything as downloaded form with you that this all document has been every notice every submission every acknowledgement is to be kept in a downloaded form with you.

[01:33:15]So email monitoring is also required uh for because everything pertaining to form 35 will be goes through email. So you have to take care of your email monitoring.

[01:33:27]You have also to request that during the course of assessment pro uh during the course of CIT proceeding that VC uh VC request should also been given to you.

[01:33:38]Video conferencing request should also be given. Even though you have explained all your matter, you should allow CIT to provide you as a video conferencing and with the oral explanation you can explain your case.

[01:33:54]uh assess to a remand report the remand report which is comes from AO to CIT appeal certain times uh CIT appeal doesn't allow you to share that remand report with you in that course uh you have to specifically write to a CIT to provide us a copy of that uh remand report to you also we have a right to assess all the department material which is to be used against uh your particular case. So we can go with all that thing also.

[01:34:31]So these are the practical issues which have been arisen during this faceless proceedings kind of things.

[01:34:41]So hope all these things have been taken into consideration. So now uh so Ravi whether we should take care of the questions or we should go for one of the or what we can do >> uh sir let's finish the session first later on we will take the question >> okay so for everyone uh this kind of thing I have what I have done I have given a live case uh this year we have only taken into consideration. So this is a live case. You just uh have that kind of thing. I can brief you the case and then on that case how the things how the uh grounds of appeal should be placed down.

[01:35:33]So we will see also that thing also just in a form of uh to know how the grounds of appeal has been drafted.

[01:35:41]There's a one sec who is an event management company. Uh who event management company in the sense of he is individual but he is running a event management company business. Uh who was who was conducting a event uh for organizing the media industry. He was doing like suppose bringing all the artists and everything pertaining to event management and doing that kind of stuff. He was an individual. The SSE has made a turnover of 1 cr 20 lakh. Uh what was happened? The SSE has offered his income under 4480 with a rate of uh the rate more than 6%. uh he has offered tax higher than 6% kind of thing and um his TDS was deducted under 194 J as a professional income during the course of assessment proceeding the assessment was happened.

[01:36:40]So assessment proceedings was taken care by assessing officer and the what the SSE has determined that since the TDS has been deducted under 194J so what the he has deemed that the SSE has to be covered as a part of 44 ADA and created his addition to the extent of 50% of his entire turnover.

[01:37:06]I hope I am clear with the case. So this is the case. So addition was made to the extent of 50% of the income under section 144A.

[01:37:20]He was uh running a event management company where all this media uh entities organizing to create a facilation of all these things. He was doing that kind of business.

[01:37:33]So, so we want to this is I am stating you the this is the assessment proceeding.

[01:37:42]So you all decide how that grounds of appeal is to be taken into consideration. Case grounds of appeal decideing it is a very simple case. Now I have just stating a particular case.

[01:38:06]So everyone you first analyze I'm giving a two-minut kind of pause and then you decide how this things has to be taken care and then I will state down what we have done.

[01:38:22]So this is not a company it is a individual. This is a event management uh company in the sense of he's doing the business of event management but the sec is individual only I suppose everyone has gone through with the things argue assessing officer deeming fiction since your TDS has been deducted 194 so you are applicable for 44 ADA.

[01:40:57]or you are taxable for 50% of your income.

[01:41:02]Uh we have offered to extend of 6% but u 6% or more than 6% but the AO has come with this kind of deposition.

[01:41:20]So now I am giving as a answer. So you can also have that kind. I am not reading any uh answers of everyone. I'm just giving answers from my side and then you can analyze from according to sub first and foremost okay the cit appeal 44 ADA is only applicable to the turnover up to a 50 lak rupees or 75 lakh rupees.

[01:41:52]Once my turnover cross to more than uh this limit of 75 lakh rupees okay he cannot assess my income under 44 ADA to the section of 44 ADA cannot be applicable only to the SSE everyone got my point so 44 ADA will not come into picture only because even if the assessing officer want to reject my thing like say suppose even if want to reject that uh 44 AD is not applicable to you as a 6%. In that course I am even if he want to uh assess my income as a professional income also he has to come with the normal course kind of thing only he can't go with the presumptive taxation kind of thing.

[01:42:44]Presumptive things are not applicable once you have crossed down the turnover limit. So my turnover limit has been crossed. So I am out of the purview.

[01:42:53]Even if the assessing officer has to uh consider my professional income then he has to uh instruct me to prepare a full books of account and on the basis of the actual profit only he can argue me to pay the taxes.

[01:43:10]I hope I am correct and uh this thing is to be taken into by the AO. But what AO has done without seeing my turnover without seeing what is the 44 ADA turnover limit he has assessed my income with a 50% criteria and with this 50% his entire assessment proceeding become as a varnish.

[01:43:38]So I am just stating what all grounds we have placed down. Okay.

[01:43:45]I will just read down for everyone and then we can have a discussion on that.

[01:43:51]Uh on the facts and circumstances of the case of the law, the learning assisting officer gravely erred in invoking the provision of section 144 44 ADA to the appate reset of 1 cr 20 lakh rupees.

[01:44:07]Section uh 44 ADA is a um by its plain uh language applies only to the sec engaged in a profession refer to section 44 um AA and only where the total gross receipt of a profession do not exceed 50 lakhs for the relevant previous year.

[01:44:27]The proviso extend this threshold to 75 lakh rupees only in the case where the uh aggregate of the amount received in cash during the previous year do not exceed 5% of the total receipt of such year. Thus even assuming without admitting that U appilate has carried down the profession covered under section 144 ADA the gross receipt of 1 cr 20 lakh where the where foreign exceeding both of the statuto ceiling limit of 50 lakh and enhanced ceiling limit of 75 lakh rupees accordingly by very fundamental al condition of invoking section 44 ADA is absent. The deeming fiction containing therein could not be pressed into service at all. The impounded application of 44 ADA is therefore exia controversial contrary to the express of statutory mandates without um authority of law and liable to be strike out.

[01:45:41]The whole of the sense of this thing is what?

[01:45:45]44 ADA in this particular case because CIT appeal The whole argument is on that basis 44 my whole of the assessment order is bad enough. So this is my first ground.

[01:46:26]Now second ground is what on the facts and circumstances of the case of the learned the learned assessing officer further urged in holding that the appilate is engaged in profession referred to under section 44. The appellet is not caring about any legal medical e uh engineering architectural accounting technical service interior decor or any other notified profession.

[01:46:47]The um metal record in uh including the statuto resition business invoking client correspondent established that the applet has engaged in the campaign uh execution influencer activation media coordination facilitator commercial negotiation and agency intermediate function. uh the fi the finding that the applate derived to reset by way of a specialized intellectual and manual uh skills technical um technical u consultancy and artistic work is supportive to the record is b based on the conjunction and liable to be reversed here I'm saying that 44 a 44 a major definition 44 applicable service is not applicable event management company.

[01:47:55]So that only we have argued that on all these things was placed before assessing officer also everything but then also he is invoking this 44 ADA lag or uh everything we has provided as a part of assessment proceedings also.

[01:48:17]Now my third ground is on the facts of the circumstances of the case. The learning officing officer failed to appreciate that the uh statutory scope of 194J is widened the class of the profession referred under section uh 44 AA. Even assuming that without admitting that certain receipts which are subject to deducted the TDS on section 194J that by itself could not bring a appate um within the section of 44 ADA which is confessing the profession referred under section 44 AA. The uh implied order thus proceed to be a fundamental legal um misconception and deserve to be set aside on this ground alone.

[01:49:11]I am saying that thing section for 194J where the TDS of under the section TDS on profession is is much wider as compared to the section 44A and you can't say that everything come under 194J is to be taken care as part of part of taxability as a 44 ADA. 44 ADA has a limitation which is the uh profession.

[01:49:46]Hello.

[01:50:00]>> Hello. It is audible.

[01:50:03]>> Yes sir. It is audible.

[01:50:05]>> Okay. See someone has told that things are not audible.

[01:50:08]>> Hey in between sir your screen has been hanged for a while but now it is normal.

[01:50:13]>> Okay. Okay. Okay.

[01:50:17]So I am telling to a CIT appeal in this argument that 194J is a much more wider section and 44 AAA which refers to applicability of section 44 ADA is a very limited excess and you can't say that thing that everything if the section 194J if the TDS has been deducted under 194J you can't say that thing everything is taxable under 44 ADA. So this is also one of the argument which we have taken.

[01:50:59]Now we have also created that kind of argument that we have given multiple things like say suppose GST registration, shop establishment everything and this is a residual argument we have taken. Everything was placed before assessing officer and then this uh everything was kept aside and assessing officer has not applied his mind and plainly only on the section of TDS. Like say suppose my TDS has been covered as a part of 194J which carries uh only the word of profession only on that behalf he has come to a conclusion that I am into a professional activity.

[01:51:37]He himself has not applied what is the to be other document relevance.

[01:51:44]So this is a residual ground we have taken into factor.

[01:51:48]So the my whole idea of presenting this case law is just because key for one this small factor how the gr grounds has to be drafted.

[01:52:00]Why I have brought this all these things into your picture that if there even there is a small this thing kind of thing that very small kind of thing how the nature of ground is to be drafted and how it is to be presented before CIT and how you can dissect your prepositions.

[01:52:27]I hope I everyone is clear with this example.

[01:52:32]So if I want to recap everything first you have to create a all your prerequisites read your orders everything collect everything u notices everything uh notices your reply givens assessment orders what all things have been missed out by assessing officer you read down that thing identify all your issues what are issues are and on that basis you come out to be a drafting of grounds of appeals and statement of facts and then you re review it and file it to before the CIT appeal. So this is the way you can go for CIT appeal kind of thing.

[01:53:20]Okay. So this is the final uh this thing. So so now you can have that kind of question area. I have missed many of the questions.

[01:53:32]>> Yes sir. I I will make it simpler for you. I will uh give you the question posted by the uh members from the chat box and the question answer panel.

[01:53:44]>> Okay.

[01:53:45]>> So first one is that if the rectification is filed under 154 then whether appeal can be filed or not?

[01:53:51]>> Yes. Yes.

[01:53:53]>> Okay. The Hina Jane has asked that question.

[01:53:55]>> Both can be filed. I have told you during the uh this assessment uh the this session also that uh you can go with 154 also, you can go with the only with the appeal also or you can go with the both of the things also or even if you can mention in your appeal also that for that thing you have also filed down the uh 154 application also. If your uh 154 application has been taken care priorly only then you can withdraw the uh ground of that particular proposition.

[01:54:28]>> Okay, got it sir. Uh secondly, the ammon has asked the question that should we upload the letter of authority while filing the appeal or is it fine?

[01:54:38]>> Later on also you can file.

[01:54:40]>> Okay, it is not mandatory, right? So at the time of filing of appeal it is not mandatory because appeal is to be signed by the SSE or the authorized signary of the SSE. So >> okay uh the next question is sir if the order is passed by the AO in the year 2023 and assess being a NRI uh she didn't get the notice and recently he has logged into his income tax account and found the assessment order. So can he file the appeal now?

[01:55:16]You can file the appeal now with the condonation of request and what has been seen with the past track record required um condonation in the case of NR is very liberally been given to the SS.

[01:55:31]>> Okay. Uh then the in okay in the form 35 there is one column that amount of income assess. So it would be the same as return income or would be uh return income plus amount of addition. The I think the sir has already answered this. It is the amount disputed only.

[01:55:51]>> Yes. Amount disputed only.

[01:55:53]>> Yeah. Uh in case CIT appeal rejects the condonation what are the alternate option available?

[01:56:01]>> In that case you have to go go and go with the IT later.

[01:56:06]>> Okay. ITA. I think many of the members have asked this. Uh the only question uh thing is you have to appeal to the ITAT.

[01:56:16]The stay of demand before what is the procedure? Okay. The stay of demand before AO or CIT appeal. Uh and what is the procedure for same in faceless assessment and what do we do when the matter is with the ITA?

[01:56:33]So stay of demand you have to file with AO. AO has a power to uh reduce um to take into consideration and that 20% demand or um is to be paid before the AU uh and this is to be taken care by uh assisting officer only. If you are want to create that kind of thing, you can go with a PCIT of the uh relevant jurisdictional assisting officer for your additional request. If you uh doesn't want to pay that particular 20% also only then you have to go with the high court via red petition only.

[01:57:13]>> Okay. And uh the same member has also asked that sir there is no option to file stay petition in portal. In that case do we need to file it to the jurisdiction officer physically or it is online only?

[01:57:28]>> Online only you have to file with assessing officer not with the CI bill.

[01:57:33]>> Okay. Uh the mention addition only submit.

[01:57:45]Uh sir sir the another member is asking that the if the additional evidence uh if the appealant submits the additional evidence at the time of filing of the appeal and inadvertently miss out to submit the few of them during the development of the case to whether she can submit it later on or not.

[01:58:09]>> Ravi can you come out with again with the question? Yeah, the the member is asking sir that if the additional evidence the assess want to submit uh in that list few of them are miss out inaductly.

[01:58:23]So later on they can submit or not >> you can submit >> or it is a one time or it is a one time opportunity >> later on also you can submit down thing it is depending upon cit but while filing form 35 there is a questionary whether there is the additional evidence or um whether the additional evidence is also there in record or not there you have to mention it yes or no. So you have to mention that thing as a yes. So once you have mentioned that thing as a no then CIT has taken as that kind of you that they will not accept the additional evidence but it is uh been said as key you have to file additional evidence along with your C application only form 35.

[01:59:10]>> Okay. Uh the another question asked by Anil Wasanti is sir how can we file objection before DRP dispute resolution panel if it is not done within the stipulated time and AO pass the order can we make it uh to the CI appeal >> once the order has been passed you can go with the CI appeal now you doesn't have a open window kind of thing that or you can go back to the >> okay uh is the case in particular online.

[01:59:45]Okay mention >> okay the 20% you have mentioned that uh it has to be paid uh which is inclusive of interest right or it is excluding interest portion. So according to your uh 156 demand notice 156 demand notice carries everything your interest also your TDS has been adjusted and the net amount is your uh tax liability which is to be paid to the department for that you have to pay 20%.

[02:00:18]>> Okay it is inclusive of interest and all the portion.

[02:00:21]>> Yes.

[02:00:22]>> Yeah. Uh the another is yeah it is mandatory to attach the supporting document while furnishing the additional evidence.

[02:00:35]>> Mandator mandatory >> yeah because otherwise they will not consider it >> in that course C has appe has a power to reject your uh application. he will do or not do is depending upon what call he used to take but he has the power to reject your app.

[02:00:53]>> Okay.

[02:00:55]>> Okay. Okay, I think so that's the all the question from the members. I think there is no much more to a CA also appear before IT8 and CIT appeal that is a commonly here.

[02:01:13]Okay, I think most of the questions are answered by the faculty.

[02:01:18]Sir, can you please share your uh that contact details share uh screen.

[02:01:30]I would like to um mention and tell all the members that all the PPT details will be shared and hosted on the WRC website once the session gets over.

[02:01:44]Meanwhile, if you have any further question or if I have missed out any of the you can uh contact the uh CSura sir for the explanation and the answer.

[02:01:58]So that's uh it uh now I would like to conclude the session and would like to extend the formal vote of thanks to our speaker and the members. So as we conclude this insightful virtual session on drafting of grounds of appeal and statement for filing of IT appeal, I would like to thank and express my sincere gratitude to everyone who made this event a success. I would first like to extend a heartfelt thank you to our dynamic chairman CSA sir for his visionary leadership and for organizing this session. Sir, your commitment to the professional development of our members is truly inspir inspiring.

[02:02:44]I also wish to thank our WC office bearer, our vice chairman CAN sir, secretary CA Bishan sir and treasurer CA Rakkesh sir sir all of yours backend support and coordination is highly appreciated for the smooth and seamless conduct of this virtual program. And now a special thanks to our today's speaker C Suraj Singhal GI. Thank you sir for delivering such a detailed and practical session. Uh especially I would like to mention that the live case which is really helpful for understanding how to prepare the grounds of appeal and statement of fact in the real time. uh the clarity with which you have navigated the complexities of IT appeal drafting uh has provided us all the invaluable takeaways for our practice.

[02:03:35]I'm sure all the members will be benefited and make a pre they prepared the grounds of appeal and statement of fact with advice you have given. Uh finally thanks to all the participants for all your active engagement and thoughtful questions. So thank you once again all of you on behalf of WC and ICI.

[02:04:00]Have a wonderful evening to all the members.

[02:04:05]Thank you sir for session.

[02:04:10]Once again I would remind all the member that the presentation will be hosted on WRC website. So no need to worry.

[02:04:22]>> Thank you sir. We we can end the session.

[02:04:25]>> Thank you. Thank you.