Deficiency Notice under Rule 45 – Income Tax Rules, 1962

 

📄 Deficiency Notice under Rule 45 – Income Tax Rules, 1962

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🔍 What is a Deficiency Notice under Rule 45?

When an appeal is filed via Form 35 on the Income Tax e-filing portal, the Commissioner (Appeals) or JCIT(A) examines the appeal for procedural completeness.

If there are deficiencies in:

• Documents attached,

• Form content,

• Incorrect jurisdiction,

• Incomplete grounds of appeal, or

• Missing payment of fees,

then the JCIT(A) or designated faceless appeal unit may issue a “Deficiency Notice” under Rule 45(2) of the Income Tax Rules, 1962.

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📜 Relevant Legal Provision:

Rule 45(2):
"Where a memorandum of appeal in Form No. 35 is found to be defective, the Commissioner (Appeals) may intimate the defect to the appellant and give him an opportunity to rectify the defect within a period of fifteen days from the date of such intimation or within such further period which, on an application made in this behalf, the Commissioner (Appeals) may allow."

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🔁 Procedure After Receipt of Deficiency Notice:

Step	Action
1️⃣	Notice is issued via e-Filing Portal under “e-Proceedings”.
2️⃣	Assessee gets 15 days (or extended time, if requested) to rectify the defects.
3️⃣	Upload corrected Form 35 or missing documents as directed.
4️⃣	If rectified on time – appeal proceeds normally.
5️⃣	If not rectified – appeal may be declared invalid or rejected in limine.

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🧾 Common Reasons for Deficiency Notice:

• Form 35 not digitally signed (where required)

• Mismatch in PAN/Acknowledgment Number

• Appeal filed against wrong assessment year or order

• Appeal filed with insufficient or no fee

• Documents like assessment order, computation, or grounds not attached

• Supporting documents not legible or missing

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📌 Tip:

Always check the “e-Proceedings” and “Worklist” section regularly after filing Form 35. Rectify promptly to avoid appeal rejection.

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