Tax litigation is a ladder, and almost every rung has a short and strictly applied deadline. An assessment order is appealed to the Commissioner (Appeals), from there to the Income Tax Appellate Tribunal, from there to the High Court on a substantial question of law, and finally to the Supreme Court. Each stage narrows what can be argued.
The Tribunal is the last forum that decides facts. That makes it the most important stage in the ladder and the one where the record has to be complete, because the High Court under Section 260A will not entertain a question that is purely one of fact. For a taxpayer in Bengaluru, this page sets out the route and the deadlines.
The tax appeal route for a Bengaluru taxpayer
- First appeal
- Commissioner of Income Tax (Appeals) — conducted under the faceless appeal regime
- Second appeal
- ITAT Bengaluru Benches
- Appeal on a substantial question of law
- Karnataka High Court — Section 260A
- Final appeal
- Supreme Court of India — Section 261
- Time to appeal to the CIT(A)
- Thirty days from service of the order
- Time to appeal to the ITAT and the High Court
- Sixty days and one hundred and twenty days respectively
A Bengaluru taxpayer's second appeal is heard by the ITAT Bengaluru Benches, and an appeal from the Tribunal on a substantial question of law lies to the Karnataka High Court under Section 260A of the Income-tax Act, 1961.
The Tribunal is the final fact-finding authority in the direct tax ladder. Once it has decided the facts, the High Court's jurisdiction under Section 260A is confined to a substantial question of law, and a finding of fact is interfered with only where it is perverse or based on no evidence. Everything that needs to be on the record therefore has to be on it by the time the Tribunal hears the appeal.
The first appeal is now conducted under the faceless appeal regime, which removes the physical hearing before the Commissioner (Appeals) in the ordinary course and conducts the proceeding through the electronic portal. Personal hearing through video conference may be requested. The practical consequence is that the written submission carries more weight than it once did, because it may be the only thing the appellate authority sees.
Reassessment is where a large share of current litigation sits. The procedure under Sections 148 and 148A requires the assessing officer to give the assessee an opportunity before issuing a notice, and to pass an order under Section 148A(d) considering the reply. Failure to follow that procedure is a jurisdictional defect, not an irregularity, and it is the ground on which many reassessment notices are set aside.
How the firm acts for a client in Bengaluru
Tax proceedings are now largely electronic — faceless assessment and appeal are conducted through the portal, and Tribunal hearings are frequently held by video conference. The points below set out how the firm conducts a tax matter for a client based in Bengaluru.
Faceless assessment and faceless appeal are conducted through the income tax portal. Submissions, documents and responses are filed electronically, and there is no physical office to attend.
Where the proceeding is faceless, the quality and completeness of the written submission and the paper book largely determine the outcome. That is drafting, and it does not depend on the location of the advocate.
Appeals before the ITAT Bengaluru Benches are listed and, in many cases, heard by video conference.
Where a matter requires physical appearance before the ITAT Bengaluru Benches or the Karnataka High Court, the firm associates local counsel who appears on the record, and continues to conduct the matter itself. The firm's direct tax practice is led by an associate with over six years of experience in direct tax litigation.
What the firm handles in tax matters
- Representation in income tax assessment and reassessment proceedings
- Responses to notices under Sections 142(1), 143(2), 148 and 148A
- Appeals before the Commissioner of Income Tax (Appeals)
- Appeals before the Income Tax Appellate Tribunal
- Appeals to the High Court under Section 260A on a substantial question of law
- Matters under the black money and benami legislation
- Stay and recovery proceedings, and rectification applications
- GST advisory, and appeals against orders of the adjudicating and appellate authorities
- Writ petitions where the tax authority has acted without jurisdiction or in breach of natural justice
The direct tax appeal ladder, and the deadlines
Each of these periods runs from service of the order. Delay may be condoned for sufficient cause at most stages, but it has to be explained, and it is not condoned as a matter of course.
| Stage | Forum | Time limit |
|---|---|---|
| Assessment or reassessment order | Assessing Officer / faceless assessment unit | — |
| First appeal | Commissioner of Income Tax (Appeals) | Thirty days from service of the order |
| Second appeal | Income Tax Appellate Tribunal | Sixty days from communication of the order |
| Appeal on a substantial question of law | High Court, under Section 260A | One hundred and twenty days |
| Final appeal | Supreme Court, under Section 261 | Ninety days, by special leave or on certificate |
| Rectification of a mistake apparent from the record | The authority that passed the order, under Section 154 | Four years from the end of the financial year in which the order was passed |
A stay of recovery is a separate application and is not automatic on filing an appeal. Where recovery is pressed while an appeal is pending, an application for stay must be made — to the assessing officer and the Commissioner in the first instance, and to the Tribunal where the appeal is before it.
Reassessment — where most current litigation is
The reassessment procedure was substantially recast, and a large volume of litigation now turns on whether the recast procedure was followed rather than on the merits of the addition.
What the officer must do
Sections 148 and 148A, Income-tax Act, 1961
- Conduct an enquiry, if required, with prior approval of the specified authority
- Provide the assessee an opportunity of being heard, by serving a notice under Section 148A(b) with the information relied on
- Consider the assessee’s reply
- Pass a reasoned order under Section 148A(d) deciding whether it is a fit case for issuing a notice
- Obtain the approval of the specified authority before issuing the notice under Section 148
- Issue the notice within the period of limitation applicable to the assessment year in question
Where reassessment is challenged
- No information suggesting escapement of income, as required — the jurisdictional foundation is absent
- The information relied on was not supplied with the Section 148A(b) notice, so no meaningful opportunity was given
- The Section 148A(d) order does not deal with the reply, or gives no reasons
- Approval of the specified authority was not obtained, or was mechanical
- The notice is barred by limitation for the assessment year concerned
- A change of opinion on the same material already considered in the original assessment
These are jurisdictional objections, not procedural quibbles. Where the foundation for assuming jurisdiction is absent, the notice and everything that follows from it fall, and that can be raised by writ petition before the High Court without exhausting the appellate route — which is one of the recognised exceptions to the alternative remedy rule.
How an application proceeds
- 01 Respond to the notice properly, and on time
The reply to a notice under Section 142(1), 143(2) or 148A(b) is the foundation of everything that follows. Facts and documents not placed on the record at this stage become progressively harder to introduce, and are effectively unavailable by the time the matter reaches the High Court.
- 02 Assess whether the order is worth appealing
Not every addition is worth contesting. The assessment weighs the amount at stake, the strength of the point, the cost, and whether the issue is covered by binding authority in the taxpayer’s favour.
- 03 First appeal to the CIT (Appeals)
Filed within thirty days, with the grounds of appeal and a statement of facts. Because the proceeding is faceless, the written submission and the documentary record carry the argument.
- 04 Apply for stay if recovery is pressed
Filing an appeal does not stay recovery. Where demand is being enforced, a separate stay application is made, and the tax authorities’ own instructions on part payment pending appeal are relevant to what is offered.
- 05 Second appeal to the Tribunal
Filed within sixty days before the Income Tax Appellate Tribunal, with the grounds and the paper book. This is the last opportunity to establish facts, and the record has to be complete here.
- 06 Appeal to the High Court
Within one hundred and twenty days, under Section 260A, and only on a substantial question of law. The question has to be formulated, and an appeal that in substance seeks a re-appreciation of evidence will not be admitted.
- 07 Writ, where the defect is jurisdictional
Where the authority acted wholly without jurisdiction or in breach of natural justice, a writ petition under Article 226 may be maintainable without exhausting the appellate route.
Indirect tax — the GST appeal route
The indirect tax ladder is separate, and its own pre-deposit requirements shape what is worth contesting.
- An order of the adjudicating authority is appealed to the Appellate Authority under Section 107 of the Central Goods and Services Tax Act, 2017, within three months, extendable by one month on sufficient cause.
- A pre-deposit of ten per cent of the tax in dispute is required for that first appeal, subject to the statutory ceiling.
- A further appeal lies to the Goods and Services Tax Appellate Tribunal under Section 112, with an additional pre-deposit on the amount still in dispute.
- From the Tribunal, an appeal lies to the High Court under Section 117 on a substantial question of law, and to the Supreme Court under Section 118 in specified cases.
- Where a matter involves the interpretation of the place of supply, the appeal from the Tribunal lies directly to the Supreme Court.
- Advance rulings are available under Section 97, with an appeal to the Appellate Authority for Advance Ruling under Section 100.
- Writ jurisdiction remains available for jurisdictional defects — a notice issued without authority, a breach of natural justice, or blocking of the electronic credit ledger without the conditions in the rules being satisfied.
The constitution of Goods and Services Tax Appellate Tribunal benches has been phased, and the position on where a particular appeal is to be filed should be confirmed at the time of filing rather than assumed.
Where a tax appeal from Bengaluru is heard
A second appeal in a direct tax matter from Bengaluru is heard by the ITAT Bengaluru Benches. The Tribunal sits in benches and is the final fact-finding authority in the ladder — the point at which the factual record closes.
An appeal from the Tribunal lies to the Karnataka High Court under Section 260A of the Income-tax Act, 1961, and only where the case involves a substantial question of law. The question must be formulated, and the High Court does not re-appreciate evidence. A finding of fact by the Tribunal is interfered with only where it is perverse or based on no evidence at all.
From the High Court, an appeal lies to the Supreme Court under Section 261 on a certificate that the case involves a substantial question of law of general importance, or by special leave under Article 136.
Writ jurisdiction under Article 226 before the Karnataka High Court runs in parallel, and it is genuinely useful in tax matters in a way it is not in many others. Because the availability of an appeal is a discretionary bar rather than an absolute one, a notice issued wholly without jurisdiction — a reassessment notice barred by limitation, or one issued without the Section 148A procedure — can be challenged directly, without first exhausting the appellate route.
In indirect tax, appeals run through the Appellate Authority and the Goods and Services Tax Appellate Tribunal, with a further appeal to the Karnataka High Court on a substantial question of law under Section 117 of the Central Goods and Services Tax Act, 2017.
Where tax disputes commonly arise in Bengaluru
Bengaluru is India’s principal centre for software, aerospace and biotechnology, and hosts a large concentration of corporate research and development. The composition of the local economy shapes the kind of tax disputes that arise here.
- Software and technology — source code, architecture, algorithms and product roadmaps, and the recurring line between protected information and the developer’s own skill and experience.
- Startups — investor diligence disclosures, cap tables and financial models shared before an agreement is signed.
- Biotechnology — cell lines, assay methodology, process parameters and negative know-how that cannot be patented without disclosure.
- Aerospace and defence — technical data under contractual and statutory confidentiality obligations.
- Customer data and pricing models in consumer internet businesses, where teams move frequently.
- Semiconductor and hardware design files and fabrication process parameters.
Sector context is set out here to describe the local economy and to indicate where questions of this kind arise. It is not a statement about the firm’s clients or engagements.
Relevant statutory framework
- Income-tax Act, 1961
- Income-tax Rules, 1962
- Central Goods and Services Tax Act, 2017
- Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015
- Prohibition of Benami Property Transactions Act, 1988
- Constitution of India — Article 226
Frequently asked questions
Which ITAT bench hears an appeal from Bengaluru?
The ITAT Bengaluru Benches. An appeal from the Tribunal lies to the Karnataka High Court under Section 260A of the Income-tax Act, 1961, and only on a substantial question of law.
How long is there to appeal an assessment order?
Thirty days from service of the order for a first appeal to the Commissioner (Appeals). Sixty days from communication of the order for a second appeal to the Income Tax Appellate Tribunal. One hundred and twenty days for an appeal to the High Court under Section 260A. Delay may be condoned for sufficient cause, but it must be explained.
Does filing an appeal stop recovery of the demand?
No. An appeal does not by itself stay recovery. A separate stay application must be made where demand is being enforced — to the assessing officer and the Commissioner at the first stage, and to the Tribunal where the appeal is pending before it. The tax authorities’ instructions on part payment pending appeal are relevant to what is offered.
What is a substantial question of law?
It is a question of law that is debatable, not already settled by binding authority, and material to the outcome of the case. It is the gateway to the High Court under Section 260A. A dispute about how the Tribunal weighed the evidence is not a substantial question of law, and an appeal framed that way will not be admitted — which is why the factual record must be complete before the Tribunal.
Can a reassessment notice be challenged by writ?
Yes, where the defect is jurisdictional. If the notice was issued without the procedure under Section 148A being followed, without the required approval, on no information suggesting escapement of income, or beyond the period of limitation, the foundation for assuming jurisdiction is absent. That falls within the recognised exceptions to the alternative remedy rule and may be raised directly before the High Court.
What does faceless assessment change in practice?
It removes the personal interaction with the assessing officer in the ordinary course; notices, submissions and orders pass through the portal. The practical consequence is that the written submission and the documents uploaded are the whole of the taxpayer’s case, so completeness and clarity matter more than they did. A personal hearing through video conference may be requested.
What is the pre-deposit for a GST appeal?
Ten per cent of the tax in dispute for the first appeal to the Appellate Authority under Section 107 of the Central Goods and Services Tax Act, 2017, subject to the statutory ceiling, and a further pre-deposit on the amount still in dispute for an appeal to the Appellate Tribunal under Section 112. The pre-deposit requirement is a practical factor in deciding what is worth contesting.
Who handles direct tax matters at the firm?
The firm’s direct tax practice is led by an associate with over six years of experience in direct tax litigation, covering income tax, black money and benami matters, whose work includes drafting submissions, representation in assessments, and filing and arguing appeals before appellate authorities, the Hon’ble High Court and the Income Tax Appellate Tribunal.
Can the firm act in a Bengaluru tax matter from Jaipur?
Assessment and first appeal are faceless and conducted entirely through the portal, and Tribunal hearings are frequently held by video conference, so the substantial part of a tax matter does not depend on location. Where physical appearance before the ITAT Bengaluru Benches or the Karnataka High Court is required, the firm associates local counsel who appears on the record while the firm conducts the matter.
Riva Legal Associates works from a single chambers in Jaipur, Rajasthan and does not maintain an office in Bengaluru. Matters requiring appearance before a court in Karnataka are handled in association with local counsel.
This page is published for general information about the law and procedure that applies to a business in Bengaluru. It is not legal advice, an advertisement, or a solicitation, and it should not be relied upon as a statement of the law applicable to any particular matter. For advice on a specific matter, please contact the firm or consult a qualified advocate.
Other intellectual property matters in Bengaluru
Direct & Indirect Tax in other cities
The firm accepts matters from clients across India, in association with local counsel where appearance in another state is required.
Discuss a matter in this area
Phone, WhatsApp, email, or the form. An initial consultation is arranged on request.