Form 35 is for filing an appeal before the Commissioner of Income Tax (Appeals) [CIT(A)]. The CIT(A) is the first appellate authority for an assessee aggrieved by the assessment order passed against him / her. The maximum filing fee is Rs. 1000, depending on the level of the assessee's income. The CIT(A) is not to be confused with the Commissioner of Income Tax (CIT). The former is a quasi-judicial authority, instituted for dispute resolution, while the latter comes under the actual tax administration i.e. computation and determination of income and passing assessment orders.
Form 36 is for filing an appeal before the Income Tax Appellate Tribunal. The maximum filing fee is Rs. 10000, again depending on the assessee's income. An appeal can be filed against the CIT(A)'s order (or the final assessment order passed in conformity with the DRP's order) before the Tribunal. Form 36 may be accompanied by an application for stay of demand (for a fee of Rs. 500), unlike Form 35. Though the CIT(A) is not expressly empowered to grant stay, it has been held that the CIT(A) has an inherent power to do so