TRW & Co · Tax disputes
Income Tax Appeal Procedure: Commissioner (Appeals) to Tribunal
The income tax appeal procedure Bangladesh law provides runs from the Commissioner of Taxes (Appeals) within 45 days of the demand notice, to the Taxes Appellate Tribunal within 60 days, and to the High Court Division on questions of law within 90 days. Since July 2026, appellants pay pre-deposits of 1%, 3% and 10% of the disputed tax, with no waiver.
Key pointAppeals in Bangladesh are often decided by what was produced at audit: section 288(6) bars new evidence on first appeal without sufficient cause. Meanwhile, the deemed-allowed rules (150 days for a first appeal, 180 for the Tribunal) can win a case if the authority runs out of time.
At a glance
First appeal in 45 days
Appeal to the Commissioner of Taxes (Appeals) within 45 days of service of the demand notice, paying the admitted tax, a 1% pre-deposit and a Tk 200 fee.
Tribunal in 60 days
A second appeal lies to the Taxes Appellate Tribunal within 60 days of the first appeal order, with a 3% pre-deposit on the disputed tax since July 2026.
High Court on law
Either side may refer a question of law to the High Court Division within 90 days of the Tribunal order; 10% of the disputed tax must be paid.
Deemed allowed
A first appeal not decided within 150 days from the end of the filing month, or a Tribunal appeal within 180 days, is deemed allowed.
ADR available
Alternative dispute resolution is available for disputes before appellate bodies and courts, excluding writs; if no agreement within three months, the time is excluded from limitation.
Swipe or scroll →
The short answer: the income tax appeal procedure Bangladesh taxpayers follow
The income tax appeal procedure Bangladesh law sets out has three main tiers. You appeal an assessment first to the appellate income tax authority, usually the Commissioner of Taxes (Appeals), within 45 days of being served the demand notice. If you lose, you appeal to the Taxes Appellate Tribunal within 60 days. On a question of law, you can then refer the case to the High Court Division within 90 days. All of this sits in Part 20 of the Income Tax Act 2023.
Since 1 July 2026, the Finance Act 2026 has changed the cost of entry. According to PwC and KPMG summaries of the Act, appellants now pay a pre-deposit on the disputed tax of 1% for the first appeal, 3% for the Tribunal and 10% for a High Court Division reference, and the power to waive the deposit has been withdrawn.
This guide walks through each stage: how audit and assessment create the dispute, the deadlines and deposits, the deemed-allowed rules, alternative dispute resolution, and how this works for taxpayers in Chattogram. It reflects the law as of October 2026.
How a tax dispute starts: audit and assessment
In practice, the income tax appeal procedure Bangladesh taxpayers end up in usually begins with a return selected for audit. Under section 182 of the Act, the NBR selects returns for audit in the manner it prescribes and sends them to the Commissioner concerned. Within seven working days the Commissioner appoints the audit and inquiry teams, and the Deputy Commissioner of Taxes (DCT) then has seven working days to notify the taxpayer.
An inquiry team collects information on income, expenses, assets and transactions, normally within 60 days. The audit team then examines books, contracts and records against the audit manual. The process ends with an assessment under section 183, and the DCT serves a notice of demand under section 214 stating the tax payable and when it must be paid.
That notice of demand starts the appeal clock. Note the date it was served, keep the envelope or email, and send a copy to your adviser the same day.
Section 288(6) stops the appellate authority from admitting documents that were not produced before the DCT, unless you show sufficient cause. The appeal is largely won or lost at the audit stage. Give the DCT a complete, indexed file and keep proof of what you submitted and when.
The income tax appeal procedure Bangladesh law provides, tier by tier
The table summarises the statutory route. Fees are as stated in the 2025 authentic English text of the Act; deposits reflect the Finance Act 2026.
| Stage | Forum | Deadline | Deposit and fee | Decision time |
|---|---|---|---|---|
| First appeal | Commissioner of Taxes (Appeals) or Additional Commissioner of Taxes (Appeals) | 45 days from service of the demand notice (or of the order, in other cases) | Admitted tax liability paid; 1% pre-deposit on disputed tax; Tk 200 fee | Deemed allowed if no order within 150 days from the end of the month of filing |
| Second appeal | Taxes Appellate Tribunal | 60 days from communication of the first appeal order | 3% pre-deposit on disputed tax; Tk 1,000 fee where applicable | Deemed allowed after 180 days (240 days if an additional member is appointed) |
| Reference | High Court Division of the Supreme Court | 90 days from receipt of the Tribunal order | 10% of disputed tax; Tk 2,000 fee | No statutory deemed-allowed rule |
| Further appeal | Appellate Division | Under the Code of Civil Procedure | As the court directs | Only if the High Court Division certifies the case as fit |
Three features stand out. First, the deadlines are short and run from service, not from when you read the papers. Second, the deemed-allowed rules are powerful: if the authority does not decide in time, the appeal succeeds by operation of law. Third, only the High Court Division and Appellate Division hear questions of law alone; the first two tiers can revisit facts.
The first appeal: Commissioner of Taxes (Appeals)
Most cases under the income tax appeal procedure Bangladesh businesses use are settled at this first tier. Section 286 lets any assessee aggrieved by an order of an income tax authority appeal on assessment of income, computation of tax, losses, penalties and interest, refunds and tax credits. Appeals by companies, appeals against revision orders under section 213 and appeals involving international transactions go only to the Commissioner of Taxes (Appeals). Others may go to an Additional Commissioner of Taxes (Appeals). The NBR can assign or transfer appeals between appellate authorities.
There is a precondition. Under section 286(5), where a return was filed, no appeal lies unless the admitted tax liability has been paid; where no return was filed, at least 10% of the tax determined by the DCT must be paid. The Finance Act 2026 adds a 1% pre-deposit on the disputed amount.
At the hearing, both you and the DCT may appear in person or by a representative. The authority can allow new grounds if their omission was not wilful, can call for further enquiry, and may confirm, reduce, enhance, set aside or annul the assessment, though it must give notice before enhancing. The Finance Act 2026 also expressly adds a power to set aside cases.
While the first appeal is pending, section 214(6) provides that the DCT must not treat you as in default on the amount under appeal. That protection does not extend automatically to later stages, which is why planning for recovery matters once the case reaches the Tribunal.
For taxpayers in Chattogram, the NBR's field office list shows four Taxes Zones in Chattogram and a Taxes Appeal Zone, Chattogram, where first appeals from those zones are normally heard.
The Tribunal, the High Court Division and beyond
The later tiers of the income tax appeal procedure Bangladesh law provides are narrower and more formal. Section 291 allows the assessee, and the DCT with the Commissioner's approval, to appeal to the Taxes Appellate Tribunal against the first appeal order. The appeal must be filed within 60 days of communication of the order, with late filing admitted only for sufficient cause. The Tribunal hears both sides and may call for further particulars or direct enquiry. Its order on the facts is final, subject to a reference on law.
Section 293 then allows either side to refer a question of law arising from the Tribunal's order to the High Court Division within 90 days. The application is made in triplicate with certified copies of the Tribunal order, the original order and the relevant documents. A bench of at least two judges hears it, and the Tribunal then disposes of the case in line with the judgment.
One point surprises many taxpayers: under section 294(4), tax remains payable in line with the assessment despite the reference, unless the High Court Division stays recovery. A writ petition is a separate route, used where an officer acted without jurisdiction or in breach of natural justice; it is not a substitute for the statutory appeal.
Our guide to writ petitions explains when that route is appropriate, and our writ lawyers in Chittagong prepare and argue these cases.
Filing a first appeal, step by step
These steps reflect the income tax appeal procedure Bangladesh practitioners follow when a demand arrives.
- Record the date of service. The 45 days run from service of the demand notice or order. Diarise the deadline and a working deadline at least ten days earlier.
- Obtain the full order. Get the assessment order, the audit report and any notes of hearing. Identify each addition or disallowance and the provision relied on.
- Pay what you must. Pay the admitted tax liability and the 1% pre-deposit on the disputed amount, plus the Tk 200 fee, on or before filing. Keep the challans.
- Draft grounds of appeal. State each ground clearly, linking it to the facts and the law. Grounds not raised may be admitted later only if the omission was not wilful or unreasonable.
- File in the prescribed form. File with the appellate authority, electronically where the NBR requires it, and obtain proof of filing.
- Prepare for the hearing. Assemble the documents that were before the DCT, with an index and short written submissions. Attend in person or through your authorised representative.
- Track the 150-day period. Count from the end of the month of filing. If no order is made in time, the appeal is deemed allowed; record this in writing with the tax office.
- Diarise the next deadline. When the order arrives, the 60-day Tribunal deadline begins. Decide quickly whether to appeal, settle or seek ADR.
Alternatives: ADR and revision
Chapter III of Part 20 provides alternative dispute resolution. An assessee may apply to resolve a dispute pending before an appellate authority, the Tribunal or the Supreme Court; for a case in the Supreme Court, the court's permission is needed first, and writ cases are excluded. The admitted tax liability must be paid. A facilitator works with the Commissioner's representative; if no agreement is reached within three months from the end of the month of application, there is deemed to be no agreement.
A signed ADR agreement is binding and cannot be challenged before any authority or court. If ADR fails, the time spent is excluded from the appeal limitation. The Finance Act 2026 widened ADR to cover orders already decided by the Tribunal and introduced firmer recovery of tax admitted in ADR.
Revision under section 285 is another option: on application within 60 days, the Commissioner can revise a subordinate order, but only in the taxpayer's favour. Revision is unavailable while an appeal is possible or pending. A Tk 200 fee applies, the admitted tax must be paid, and the application is deemed allowed if not decided within 60 days.
| Route | Best for | Main limitation |
|---|---|---|
| Appeal | Disputes on facts and law where the record is strong | Pre-deposit and strict deadlines; new evidence restricted |
| ADR | Commercial settlement of factual or quantum disputes | Agreement is final; admitted tax must be paid first |
| Revision | Clear errors by a subordinate officer, where appeal time has passed or been waived | Only orders not prejudicial to the assessee; not available while appeal lies |
| Writ | Jurisdictional errors or breach of natural justice | Not a re-hearing of facts; excluded from ADR |
Illustrative scenario: a Chattogram manufacturer
Illustrative only; the company is fictional. A garment accessories manufacturer based in Chattogram files its return showing a modest profit. Its return is selected for audit. The DCT disallows part of its raw material purchases as unverified and adds the amount to income, creating a large demand.
The company pays its admitted tax liability and the 1% pre-deposit on the disputed sum, and files a first appeal within 45 days. Its submissions show that the purchase invoices, bank payments and supplier confirmations had all been produced to the DCT during the audit. Because the evidence was already on the record, section 288(6) is no obstacle.
The appeal is heard in the Taxes Appeal Zone, Chattogram. Had the authority failed to decide within 150 days from the end of the month of filing, the appeal would have been deemed allowed. The company also kept the ADR option open in case a negotiated settlement became more attractive.
Risks and common mistakes
Missing the 45-day deadline
The appellate authority can admit a late appeal if satisfied that sufficient cause prevented filing, but that is discretionary. Busy periods, an accountant's absence or waiting for a meeting with the tax office are rarely enough. Count from service of the demand notice, not from when the order reached the finance director, and file well inside the limit. If you are late, file with a sworn explanation and evidence of the cause.
Holding back documents until the appeal
Some taxpayers decide not to "show their hand" during the audit. Under section 288(6), that strategy usually fails: the appellate authority will not admit evidence that was not produced before the DCT unless you show sufficient cause. Produce a complete, indexed record during the audit, with written explanations, and keep acknowledgement copies of everything submitted.
Ignoring recovery after the first appeal
Section 214(6) protects a taxpayer from being treated as in default while the first appeal is pending. After that, recovery can proceed, including recovery certificates and bank attachment. At the Tribunal stage, and on a High Court reference, you may need to seek a stay. Plan cash flow for the 3% and 10% deposits, since the Finance Act 2026 removed the waiver.
Arguing facts in a High Court reference
A reference under section 293 is limited to questions of law arising from the Tribunal's order. Re-arguing the evidence wastes time and money. The question must be framed precisely, and the respondent may challenge whether it truly arises. Work on the legal question should start at the Tribunal stage so the findings needed to frame it are in the order.
Cross-border taxpayers and probashis
Foreign-owned companies, branch offices and probashis with property income in Chattogram face the same income tax appeal procedure Bangladesh residents do. Appeals involving international transactions or transfer pricing adjustments go only to the Commissioner of Taxes (Appeals). Where a treaty applies, the arguments may turn on the double taxation agreement as well as the Act.
Probashis can appear through an authorised representative, so they need not travel for hearings. Documents signed abroad may need notarisation or attestation, which takes time, so start early. TRW & Co coordinates with clients through its offices in Dhaka, Singapore, Dubai and London.
What to do next
- Record the date of service of every demand notice and order.
- Diarise 45 days (first appeal), 60 days (Tribunal) and 90 days (High Court Division).
- Budget for the admitted tax and the 1%, 3% and 10% pre-deposits.
- Check that all evidence was placed before the DCT; if not, document why.
- Consider ADR in parallel for disputes about amounts rather than principle.
- Track the 150-day and 180-day deemed-allowed periods.
The income tax appeal procedure Bangladesh taxpayers face rewards early, organised action. TRW & Co's tax dispute lawyers in Chittagong handle audits, appeals, ADR and High Court Division references, working with your accountants. See our income tax practice, our overview of the corporate tax rate, or our law firm in Chittagong. To discuss a demand, contact us at Room 4022, Annex 2, District and Sessions Judge Court Building, Court Hill (Porir Pahar), Kotwali, Chattogram 4000, Chattogram.
Frequently asked questions
01How long do I have to file an income tax appeal in Bangladesh?
Under section 287 of the Income Tax Act 2023, a first appeal must be filed within 45 days of service of the notice of demand for an assessment or penalty, or within 45 days of service of the order in other cases. A Tribunal appeal must follow within 60 days of the first appeal order, and a High Court Division reference within 90 days of receiving the Tribunal order. Late filing can be admitted for sufficient cause, but that is discretionary.
02How much tax must I pay before appealing?
For a first appeal, you must pay the admitted tax liability where a return was filed, or at least 10% of the tax determined where no return was filed. According to PwC and KPMG summaries, the Finance Act 2026 also introduced a 1% pre-deposit on the disputed tax for the first appeal, 3% for the Tribunal and 10% for a High Court Division reference, and removed the power to waive these deposits. Fees of Tk 200, Tk 1,000 and Tk 2,000 apply at the respective stages.
03What happens if the appeal is not decided in time?
The appeal is deemed allowed. Under section 289(7), a first appeal is deemed allowed if no order is made within 150 days from the end of the month in which it was filed. Under section 292(6), a Tribunal appeal is deemed allowed after 180 days, or 240 days where an additional member is appointed because the two members differ. Keep a written record of filing dates and notify the tax office once the period expires.
04Can I submit new documents on appeal?
Generally not. Section 288(6) prevents the appellate authority from admitting documents or evidence that were not produced before the Deputy Commissioner of Taxes, unless the appellant shows sufficient cause for not producing them. That makes the audit stage decisive. Produce a complete, indexed record with explanations when the DCT asks, keep acknowledgements, and if something genuinely could not be obtained earlier, document the reason with evidence.
05Where are income tax appeals heard for Chattogram taxpayers?
The NBR lists four Taxes Zones in Chattogram and a Taxes Appeal Zone, Chattogram. First appeals against assessments by the Chattogram zones are normally heard there, unless the NBR assigns or transfers the appeal elsewhere. Second appeals go to the Taxes Appellate Tribunal, which sits in benches (we have found no confirmed Chattogram bench, so confirm the venue when filing), and references on questions of law go to the High Court Division of the Supreme Court in Dhaka.
06Will an appeal stop the tax office from recovering the tax?
Partly. While a first appeal is pending, section 214(6) says the DCT must not treat you as in default for the amount under appeal. After the first appeal, recovery can proceed, and under section 294(4) tax remains payable even after a High Court Division reference unless recovery is stayed. You can ask for time or instalments before the payment date, and seek a stay from the appropriate forum where the case is strong.
07Is ADR better than an appeal?
It depends on the dispute. ADR suits disagreements about amounts and facts, where a negotiated figure is acceptable. The admitted tax must be paid first, writ cases are excluded, and a signed agreement is final and cannot be challenged. Appeals suit disputes of principle or law where the record is strong. If ADR fails within three months, the time spent is excluded from limitation, so trying ADR need not cost you the right to appeal.
Sources and official materials
- Income Tax Act 2023, authentic English text (Bangladesh Gazette, October 2025) — Sections 182 to 183, 214, 285 to 306 on audit, appeals, references and ADR
- National Board of Revenue — Income tax rules, SROs, Finance Act changes and notices
- NBR income tax field offices — Chattogram Taxes Zones 1 to 4 and Taxes Appeal Zone, Chattogram
- NBR e-Return portal — Online income tax returns and acknowledgements
- Supreme Court of Bangladesh — High Court Division tax references, writs and judgments
General information only, current as at 2 November 2026. It is not legal advice and does not create an advocate–client relationship. It reflects the law of Bangladesh unless stated otherwise, and the law, court practice and official fees change frequently. Check current official sources and take advice on the facts of your matter.
