Common Reasons For Income Tax Appeals

1. Income added while doing assessment for which no sufficient evidence or justification is given 
2. Exemptions and Deductions may be denied sometimes by the officer 
3. Wrong application of provisions caused due to misinterpretation of facts which may result in higher taxes.
4. Unexplained expenditure or Investments for which no reasons is explained
5. Expenses of business which are claimed by taxpayer are disallowed by the officer for reasons – Personal nature      expense, No supporting invoice or evidence, etc.
6. Wrong application of tax rate i.e. Higher tax been applied
7. Time barred notices or Invalid notice– Reopening the case after deadline or without sufficient evidence
8. Mismatch in Form 26 AS with the ITR filed- Leading to no refund or credit
9. Opportunity of being heard should be prioritized- Principal of natural Justice should not be violated.
10. Carry forward of losses may be rejected by the department due to issues in return.

Common Reasons For GST Appeals

1. Incorrect tax rate applied or wrong classification of tax.
2. Input tax credit is denied for reasons like Mismatch in invoice, Supplier is not filing returns, Blocked credit 17(5), ITC is taken beyond time period, etc.
3. Mismatch in return filed in Gstr-1 and 3b
4. Demand is raised during scrutiny or audit by department which may lead to higher taxes
5. No proper notice is issued and demand is raised
6. Wrong consideration of transaction as supply or wrong valuation been done
7. GST registration cancelled without proper notice or hearing
8. Issuance of penalty which is not satisfactory to taxpayer
9. Taxpayer feels that their refund application has been unfairly denied or postponed

For Addressing these issues

•  Appeal must be timely filed and well-documented, with strong legal, factual support and evidences
• Always advised to seek the assistance of tax professionals and experts.