Sections 15-17 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Sections 15 to 17 are the first appeal. Section 15 says who may appeal, in what form and within what time. Section 16 sets out the hearing procedure. Section 17 says what the Commissioner (Appeals) may do. The text is read from the Act as enacted and published in the Gazette of India on 27 May 2015.
A person objecting to the tax assessed, denying liability, objecting to a penalty, or objecting to certain rectification orders may appeal to the Commissioner (Appeals). The appeal is to be presented within thirty days as enacted, and late appeals can be admitted for sufficient cause up to one year of delay. The Commissioner (Appeals) can confirm, reduce, enhance or annul an assessment, but cannot enhance without giving the appellant a hearing.
Section 15(1): who may appeal and against what
Section 15(1) says any person may appeal to the Commissioner (Appeals) who is:
| Clause | Ground of appeal |
|---|---|
| (a) | Objecting to the amount of tax on undisclosed foreign income and asset for which he is assessed by the Assessing Officer |
| (b) | Denying his liability to be assessed under this Act |
| (c) | Objecting to any penalty imposed by the Assessing Officer |
| (d) | Objecting to an order of rectification having the effect of enhancing the assessment or reducing the refund |
| (e) | Objecting to an order refusing to allow the claim made by the assessee for a rectification under section 12 |
A printing point: in the Gazette text, after "Any person," a stray dash comes before clause (a), and the clauses run on in one passage. The meaning is clear from the list and nothing is corrected here. Clause (d) and (e) link to section 12 on rectification.
Section 15(2): form, verification and fee
Every appeal shall be filed in such form and verified in such manner and be accompanied by a fee as may be prescribed. The Act leaves these to rules. Under the Rules of 2015, as notified on 2 July 2015, an appeal under section 15(1) is made in Form 2, signed and verified by the person authorised to sign the return of income, and accompanied by a fee of ten thousand rupees, as notified in 2015. The rules also set a condition about paying the tax, penalty and interest on the part of the liability not objected to; our article on rules 4 to 8 and Forms 1 to 5 sets it out. Check any later amendment rules before filing.
Section 15(3) and (4): thirty days, and late appeals
An appeal shall be presented within thirty days from:
- (a) the date of service of the notice of demand relating to the assessment or penalty; or
- (b) the date on which the intimation of the order sought to be appealed against is served in any other case.
Section 15(4) lets the Commissioner (Appeals) admit an appeal after that period if (a) he is satisfied that the appellant had sufficient cause for not presenting it within that period, and (b) the delay does not exceed a period of one year. Both conditions must be met. The time taken for obtaining a copy of an order is dealt with in section 28 of the Act, which our article on sections 25 to 29 covers.
Because the period begins from service of the notice of demand for an assessment or penalty, the date of service is a key fact to record. If you are weighing an appeal against an order, our legal dispute resolution team can help you check the dates and the grounds. For the parallel first appeal under income-tax law, see our guide on the CIT(A) appeal process.
Section 15(5): hearing and orders
The Commissioner (Appeals) shall hear and determine the appeal and, subject to the Act, pass such orders as he thinks fit. Those orders may include an order enhancing the assessment or penalty. The proviso says an order enhancing the assessment or penalty shall not be made unless the assessee has been given a reasonable opportunity of being heard.
Section 16: procedure on the appeal
| Sub-section | Rule |
|---|---|
| (1) | The Commissioner (Appeals) fixes a date and place for the hearing and gives notice to the appellant and the Assessing Officer |
| (2) | The right to be heard: (a) the appellant, in person or by an authorised representative; (b) the Assessing Officer, in person or by a representative |
| (3) | He may adjourn the hearing whenever he considers it necessary or expedient |
| (4) | He may make such further inquiry as he thinks fit before disposing of the appeal |
| (5) | He may direct the Assessing Officer to make an inquiry and report on points of law or fact |
| (6) | He may allow a ground not specified in the grounds of appeal if satisfied the omission was not wilful or unreasonable |
| (7) | The order must be in writing and state the points for determination, the decision thereon and the reasons |
| (8) | Every appeal is to be disposed of as expeditiously as possible, with an endeavour to dispose of it within one year from the end of the financial year in which it is preferred |
| (9) | On disposal he communicates the order to the assessee and to the senior officers named |
Two points deserve notice. First, section 16(8) speaks of an "endeavour" to dispose of the appeal within one year from the end of the financial year of filing; it is not worded as a fixed deadline. Second, section 16(6) allows a new ground at the hearing only where the omission was not wilful or unreasonable, so it is safer to put every ground in the appeal itself.
Section 17: powers on disposal
Section 17(1) says that in disposing of an appeal the Commissioner (Appeals) has these powers:
- in an appeal against an order of assessment, he may confirm, reduce, enhance or annul the assessment;
- in an appeal against an order imposing a penalty, he may confirm or cancel the order;
- in any other case, he may determine the issues arising in the appeal and pass such orders as he thinks fit.
Section 17(2) lets him consider and decide any matter not considered by the Assessing Officer. Section 17(3) bars him from enhancing an assessment or penalty unless the appellant has been given an opportunity of being heard. Section 17(4) lets him consider and decide any matter arising out of the proceedings in which the order appealed against was passed, "notwithstanding that such matter was not raised before him by the appellant".
The width of sections 17(2) and 17(4) is the main risk of a first appeal: the Commissioner (Appeals) is not confined to the points the appellant raises, and the appeal can end with an enhancement, though only after a hearing. The next step, if the assessee is aggrieved by the Commissioner (Appeals)'s order, is section 18.
An example
Lakshmi Pillai is assessed under section 10 and a notice of demand is served on 5 May. She wishes to object to the tax assessed. She must present the appeal within thirty days of service, on the prescribed form, with the prescribed fee. At the hearing, she appears through an authorised representative. The Commissioner (Appeals) gives her notice that he proposes to enhance the assessment on a point she had not raised, as section 17(2) and (4) allow. Under section 17(3) he cannot enhance without giving her an opportunity of being heard, so she is heard before the order is passed.
Need help with a first appeal?
A first appeal is won or lost on the grounds, the evidence and the dates. Our legal dispute resolution team can help you examine the order, prepare the grounds and appear with you or for you.
Key takeaways
- Section 15(1) allows an appeal on five grounds, including objection to the tax, denial of liability and objection to penalty.
- The appeal is presented within thirty days, as enacted, and can be admitted late for sufficient cause if the delay does not exceed one year.
- The form, verification and fee are prescribed; the Rules of 2015 prescribe Form 2 and a fee of ten thousand rupees, as notified in 2015.
- The Commissioner (Appeals) may confirm, reduce, enhance or annul an assessment, and may decide matters not raised by the appellant, but must hear the appellant before enhancing.
- The Act asks for an endeavour to dispose of the appeal within one year from the end of the financial year in which it is preferred.
- Later Finance Act amendments to sections 15 to 17, and any amendment rules, must be checked before acting. References to the Income-tax Act, 1961 are as printed in 2015; check the corresponding provision of the current income-tax law.
Read next
- Sections 12-14: rectification, notice of demand and direct assessment
- Section 18: appeal to the Appellate Tribunal
- Rules 4 to 8 and Forms 1 to 5 of the Black Money Rules, 2015
- How to file a first appeal under income-tax law (the parallel procedure)
Disclaimer: Based on the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 as enacted and published in the Gazette of India on 27 May 2015, and on the Rules of 2015 as notified on 2 July 2015, as consulted on 2 October 2026. Later Finance Act amendments, amendment rules and the current income-tax law should be checked. This article is general information, not legal advice; check the official text before acting.