Pending Assessment or Appeal Under Old Act After April 2026
A transition guide for taxpayers with pending assessments, appeals, rectifications, or demands from old years after the Income-tax Act, 2025 starts.
This guide is for Indian taxpayers, founders, finance teams, and return filers navigating the Income-tax Act, 2025 and Finance Act 2025 changes. It is an educational readiness note — not a promise of tax outcome, refund speed, or notice avoidance. Always verify the position against the official portal, notified forms, and the taxpayer's own documents.
What changed
The arrival of a new law does not automatically close out old-year tax proceedings. An assessment order issued for AY 2022-23, a rectification application filed under the old Income Tax Act 1961, or a pending CIT(A) appeal — each of these continues under the procedural rules applicable to it, not the new statute. The Income-tax Act, 2025 handles its own proceedings; the old Act handles the years it governed.
| Point | Practical meaning |
|---|---|
| 1 | Pending old-year proceedings need their own document folder. |
| 2 | The applicable law, year, and notice section should be checked before replying. |
| 3 | Do not merge old appeal issues into current-year return working papers. |
The risk of mixing up the two frameworks is real. Citing a section from the Income-tax Act, 2025 in a reply that concerns an AY under the old Act, or using an old form number in a proceeding that has moved to the new portal form, introduces errors that are difficult to correct after the fact.
Why it matters now
April 2026 onwards, AY 2026-27 return work, Tax Year 2026-27 ongoing compliance, pending old-year appeals, and newly notified forms can all land in the taxpayer's queue during the same month. Without a clear filing system, it is easy to conflate the period, law reference, or procedural route for different proceedings.
A well-organised file for each pending proceeding should include the assessment year, the statute under which it was initiated, the specific sections cited in the notice or order, the current portal status, and the relevant evidence. Keep that file separate from the AY 2026-27 return working papers.
Practical example
Take a taxpayer with a pending appeal at CIT(A) level for AY 2022-23. That taxpayer should maintain a separate folder containing: the original assessment order, the grounds of appeal, the evidence index, the demand notice and current outstanding amount, any stay order obtained, correspondence with the AO, and the latest hearing notice or portal status. None of this should be mixed into the current-year ITR working papers, even if some of the disputed income relates to amounts also reflected in later years.
Records to keep
- Assessment order (including additions made and reasons)
- Appeal filing acknowledgement and grounds of appeal
- Current demand outstanding on the portal
- Evidence relied upon for each ground of appeal
- Hearing notices and dates
- Stay order if obtained, along with its validity period
Step-by-step checklist
- Identify whether pending assessment or appeal review affects AY 2026-27 filing, Tax Year 2026-27 compliance, or both.
- Read the official source and map the rule to your income head, taxpayer type, and applicable dates.
- Collect source records, computation notes, challans, statements, and declarations before filing or making payment.
- Check whether the position changes the ITR form, schedule, tax payment, TDS/TCS, or disclosure route for related years.
- Preserve the final return, acknowledgement, e-verification proof, and supporting working papers.
Official sources
| Reference | Link |
|---|---|
| Income Tax Department - New Act transition FAQs | Open source |
| Income Tax Department - Reassessment under 2025 Act | Open source |
| Income Tax Department - Income-tax Act, 2025 PDF | Open source |
Common mistakes to avoid
- Using a section number from the Income-tax Act, 2025 in a reply that concerns a proceeding initiated under the old Income Tax Act 1961.
- Mixing AY 2026-27 filing records with Tax Year 2026-27 payment or TDS records from a different period.
- Treating a headline slab, rebate, or threshold as the final tax computation without running the numbers for that specific year.
- Filing or paying before reconciling AIS, Form 26AS, challans, books of account, and certificates for the relevant assessment year.
- Not preserving the official source and computation note that supported the position taken in a notice reply or appeal submission.
How MyeCA helps
MyeCA helps taxpayers and businesses organise records by proceeding and period, compare filing and reply routes, prepare document checklists for pending matters, review tax-credit mismatches, and identify when a CA-led review is appropriate before filing a response or making a payment.
Final checklist
Confirm the assessment year and applicable statute, read the official source for that period, collect supporting records in a dedicated folder, prepare a short computation note explaining the position, verify the return or payment route, and preserve the acknowledgement after submission.
Frequently asked questions
Is this pending old-year proceedings guidance a substitute for filing advice?
No. It is an educational readiness note. Use the official portal and get case-specific CA review where facts, amounts, residency, or notices are complex.
Should I rely only on prefilled data?
No. Prefill is a useful starting point, but the return position should be matched with Form 16, AIS, Form 26AS, bank records, books, broker reports, challans, and working papers before filing.
What should I preserve after taking a position?
Keep the official reference, computation note, supporting documents, portal acknowledgement, challans, and any professional review note together in one folder for that proceeding.