What you should do after income tax department has approached ITAT against favourable order of CIT (a)

QUERY:

Against addition, I have filed appeal before CIT (A) which has been decided in my favour. Now, the department has filed an appeal before ITAT. What should I do now?

 

REPLY:

1.  Wait for Notice from ITAT

You will receive a formal notice from ITAT informing you about the appeal filed by the Department. The notice will mention:

• The ITA number (appeal number),
• The next date of hearing, and
• The grounds of appeal filed by the Department.

 

2.  Engage a Representative (if not already)

If not already done, engage your tax counsel or Chartered Accountant to represent your case before the ITAT. You will now be the respondent in the case.

 

3.  File Written Submission / Counter Affidavit

Though not mandatory in every case, it’s often beneficial to:

• File a written submission defending the CIT(A) order,
• Highlight factual and legal merits, and
• Emphasize that the CIT(A)’s order was reasoned and justified.

This gives a strong base to your defense.

 

4.  Check for Cross-Objection (Form 36A)

Even if the CIT(A) order is in your favour, if:

• You believe certain issues were decided partly against you, or
• There are adverse observations or technical errors in the CIT(A) order,
  you may file a Cross-Objection in Form 36A within 30 days of receiving the ITAT notice.

This is a powerful tool that is often underutilized.

 

5.  Attend the ITAT Hearing

On the date of hearing:

• Your representative will need to argue that the CIT(A)’s order is correct,
• Refute any new grounds or incorrect interpretations made by the Department.

ITAT proceedings are quasi-judicial, and no fresh evidence is usually allowed unless permitted under Rule 29.

 

6.  Check for Stay on Refund (if applicable)

If the Department has filed an ITAT appeal, sometimes they withhold refund or recovery proceedings citing the pending appeal. If refund is due to you or recovery proceedings start, you can:

• File for stay of demand, or
• Request for early hearing at ITAT

7.  Keep a Copy of All Orders & Submissions

Maintain copies of:

• CIT(A)’s order,
• ITAT appeal (Form 36),
• Department’s grounds of appeal,
• All your submissions and replies.

Summary Flow:

Step	Action
1	Wait for ITAT notice
2	Engage counsel if not already
3	Prepare defence submission
4	File cross-objection if applicable (Form 36A)
5	Appear and argue before ITAT
6	Watch out for refund/demand stay issues
7	Keep records for future reference