Answer

1. F

   Facts

   A penalty order can be appealed to the Commissioner (Appeals) in Form 35 within 30 days of receiving it, with the appeal fee. Grounds can include the merits, the limb charged, and procedural defects.

2. P

   Provisions and law

   • Sec 246A (now Sec 357)Appeal to the Commissioner (Appeals)
   • Sec 270A (now Sec 439)Penalty of 50% of tax on under-reported income, or 200% where under-reporting is due to misreporting
   • Form 35, Income-tax Rules 1962 (now Form 99)Appeal form to the Commissioner (Appeals)
3. A

   Analysis

   Draft grounds that cover the addition's merits, the absence of misreporting acts, and any defect in the notice. Attach the assessment order, penalty notice, your reply and the penalty order. If the quantum appeal is pending, mention it, since the two are linked. Pay the appeal fee before filing and quote the challan.

4. C

   Conclusion

   1. 1Collect the penalty order, notice and your reply
   2. 2Draft grounds of appeal and a statement of facts
   3. 3Pay the appeal fee through e-Pay Tax
   4. 4File Form 35 online within 30 days and e-verify

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.