Income tax . format of facts and ground

When filing an appeal before the Commissioner of Income-tax (Appeals) [CIT(A)], you must submit a Statement of Facts (SOF) and Grounds of Appeal (GOA) alongside Form No. 35. While the Income Tax Rules do not prescribe a rigid "fill-in-the-blank" format, there are specific conventions to follow to ensure your appeal is structured effectively.

1. Statement of Facts (SOF)

The purpose of the SOF is to present a chronological, objective narrative of the case. It is your opportunity to correct any factual errors made by the Assessing Officer (AO).

• Key Contents:

  • Introduction: Nature of the assessee’s business or status (e.g., individual, company, trust).

  • Chronology: A clear sequence of events leading to the assessment order (e.g., date of filing return, date of scrutiny notice, dates of hearings, and date of the final order).

  • AO’s Observations: Summarize the findings of the AO that you are challenging.

  • Assessee’s Position: State your version of the facts, citing relevant documentation that supports your claim.

  • Tone: Maintain an objective, professional, and non-argumentative tone. Avoid personal opinions; focus on verifiable facts.

• Drafting Tip: Ensure the SOF is comprehensive yet concise. It is helpful to organize it in a way that links directly to the additions/disallowances made by the AO.

2. Grounds of Appeal (GOA)

The grounds of appeal represent the specific legal and factual points you are challenging. This is the core of your appeal.

• Structure:

  • Precision: Grounds should be brief, specific, and clear. Avoid long, winding sentences.

  • Sequential Order: Present them in the same order as the additions made in the assessment order.

  • Legal & Merit Points: Combine legal challenges (e.g., "The order is bad in law") with merit-based challenges (e.g., "The addition of Rs. X is factually incorrect").

  • Standard Clause: It is standard practice to include a general clause at the end: "The appellant craves leave to add, alter, amend, or withdraw any or all grounds of appeal before or at the time of the hearing."

• Drafting Tip: Treat each distinct addition as a separate ground or sub-ground. Avoid being purely argumentative here; focus on stating the "cause of grievance."

Important Submission Notes

• Electronic Filing: Appeals are filed electronically through the Income Tax e-Filing Portal.

• Limit: The Statement of Facts typically has a limit (often around 1,000 words), and each ground should be concise (around 100 words).

• Documentation: Ensure all supporting evidence (paper book) is organized and ready to be uploaded or presented during the hearing process.