Income tax disputes
Income tax notices, assessments, penalties and appeals
We act on income tax matters from the first notice through assessment, penalty, appeal and recovery, building the evidence record at the stage where it can still change the outcome.
Matters we handle
Types of income tax disputes
Search and survey-linked assessments
Additions arising from searches on a counterparty or group, and assessments based on material gathered from third parties.
Unexplained credits, investments and expenditure
Additions for loans, share capital, purchases and cash deposits treated as unexplained, and taxed at the special higher rate.
Reassessment
Notices proposing to reopen earlier years, objections at the pre-notice stage, and challenges to the reasons recorded.
Penalties
Penalties for under-reporting and misreporting, and penalties linked to search-related additions, including applications for immunity.
Demand, stay and recovery
Stay of disputed demand, recovery notices to banks and debtors, and adjustment of refunds against demand.
Rectification and processing adjustments
Adjustments made while processing returns, mismatches with AIS and Form 26AS, and rectification of mistakes apparent from the record.
Stages
Where we act
- Replies to notices and faceless scrutiny, including video-conference hearings
- Assessment and reassessment proceedings
- Penalty proceedings and immunity applications
- Appeals before the Commissioner (Appeals), with condonation of delay where needed
- Appeals before the Income Tax Appellate Tribunal
- Stay and recovery proceedings before the Assessing Officer and senior authorities
Income tax questions
The notice is faceless. Can I still be heard in person?
Proceedings run through the e-filing portal, but where the draft order proposes an addition you can ask for a personal hearing by video conference. Asking for it in writing, before the deadline, matters: an unanswered request can become a ground of appeal.
What decides whether an addition for purchases or credits survives?
The evidence on record. For purchases, that means invoices, GST e-invoices and e-way bills, transport and weighment records, stock entries and payment through the bank. For loans and credits, it means the lender's identity, its capacity to lend and the genuineness of the transaction. Gaps left at the assessment stage are harder to fill in appeal.
Must I pay the demand while my appeal is pending?
Filing an appeal does not stop recovery by itself. A stay has to be sought from the Assessing Officer. Under CBDT guidelines, a stay is ordinarily granted on payment of 20% of the disputed demand, and the officer can accept less or ask for more depending on the case.
How long do I have to appeal to the Commissioner (Appeals)?
Generally 30 days from the date the order or demand notice is served. A later appeal needs an application for condonation of delay, explaining the reason for each period of delay and supported by evidence.
Can I avoid the penalty without appealing?
In cases of under-reporting that do not involve misreporting, immunity from penalty can be sought if the tax and interest are paid within the demand notice period, no appeal is filed against the order, and the application is made within the time allowed after the order is received.
A recovery notice has been sent to my bank. What now?
The department can direct your bank to pay over funds towards an outstanding demand. The quickest relief is usually a stay application, or proof that the demand is already stayed, paid or under rectification, sent to both the Assessing Officer and the bank.
Received an income tax notice or order?
Send the notice or order and its due date. We call you within one working day.