Appeals: formula sheet

Key formulas

Forum ladder

Assessing Officer's order → Joint Commissioner (Appeals) / Commissioner (Appeals) → Appellate Tribunal → High Court (section 365) → Supreme Court (section 367)

High Court and Supreme Court appeals concern questions of law. A Special Leave Petition under article 136 of the Constitution is also referred to in sections 375 and 376.

Who can appeal under section 356(1)

Assessee, deductor or collector, aggrieved by a listed order of an Assessing Officer below the rank of Joint Commissioner

Listed orders: intimations under section 270(1) or 399(1) (adjustments), orders under section 270(10) or 271, assessment orders under section 279, orders under section 398, Chapter XXI penalty orders, and amending orders under section 287 or 288.

Bar on appeal to Joint Commissioner (Appeals)

No appeal if the order is passed by, or with prior approval of, an authority above the rank of Deputy Commissioner (section 356(2))

Check who passed or approved the order before choosing the forum.

Transfer of appeals

Board or authorised authority may transfer appeals between Joint Commissioner (Appeals) and Commissioner (Appeals); appellant gets a fresh hearing (section 356(3) and (4))

The new authority proceeds from the stage the appeal had reached.

Declaration on identical question (section 375)

Assessee's declaration → AO or appellate authority admits or rejects by written order → order is final → if admitted, the question cannot be raised later in that case

Applies to an identical question in the assessee's own case for another tax year, pending before the High Court or Supreme Court. When the decision becomes final, it is applied and the order is amended if needed.

Collegium route (section 376)

Application to Tribunal or High Court within 120 days of receiving the order; fresh appeal within 60 days (Tribunal) or 120 days (High Court) from communication of the final decision

A collegium means two or more Chief Commissioners, Principal Commissioners or Commissioners, as specified by the Board.

Who may appeal

Assessee / deductor / collector + aggrieved by a listed order of the Assessing Officer

Orders listed in section 356 (for the Joint Commissioner (Appeals)) include intimations with adjustments, assessment, reassessment, recomputation, penalty and amending orders. Check the matching provision for the Commissioner (Appeals).

Bar on appeal to Joint Commissioner (Appeals)

No appeal if order is passed by, or with prior approval of, an authority above the rank of Deputy Commissioner

Applies to appeals before the Joint Commissioner (Appeals) only. Check the forum before filing.

Status

Status = category of person under which the assessee is assessed

You may appeal against the status itself, for example if you were assessed in the wrong category.

Hearing rights

Appellant (in person or authorised representative) + Assessing Officer (in person or representative)

Notice of the hearing goes to both.

Additional ground

Allowed if omission from the form was not wilful or unreasonable

The appellate authority must be satisfied of this.

Order of the appellate authority

Written order = points for determination + decision + reasons

Communicated to the assessee and to the senior tax officer.

Disposal time

Hear and decide, where possible, within 1 year from the end of the financial year in which the appeal is filed or transferred

Directory in nature, as the text says "where it is possible".

Next appeal to Tribunal

Within 2 months from the end of the month in which the order is communicated

Tribunal fee depends on the total income computed by the Assessing Officer: ₹500 if it is ₹1,00,000 or less; ₹1,500 if it is more than ₹1,00,000 but not more than ₹2,00,000; 1% of the assessed income, maximum ₹10,000, if it is more than ₹2,00,000. The fee is ₹500 where the appeal relates to any other matter.

Assessment appeal powers

Confirm | Reduce | Enhance | Annul

Section 360(1)(a). Applies to an appeal against an order of assessment.

Set aside and refer back

Appeal against section 271 assessment → Commissioner (Appeals) may set aside and refer to AO for fresh assessment

Section 360(1)(b). Power of the Commissioner (Appeals) only.

Settlement Commission abatement cases

Abatement under section 245HA of the 1961 Act → CIT(A) may consider Settlement Commission material and confirm, reduce, enhance or annul

Section 360(1)(c). Material produced before the Commission, inquiry results, evidence recorded and other material brought on record may be considered.

Penalty appeal powers

Confirm or cancel the order, or vary it to enhance or reduce the penalty

Section 360(1)(d).

Residuary power

Any other case: pass such orders as he thinks fit

Section 360(1)(e).

Limit on enhancement

No enhancement of assessment or penalty, or reduction of refund, without reasonable opportunity of showing cause

Section 360(2). Applies to both the Joint Commissioner (Appeals) and the Commissioner (Appeals).

Any matter arising from the proceedings

May decide any matter arising out of the proceedings, even if not raised by appellant

Section 360(3).

Powers of a civil court

Discovery and inspection; enforcing attendance and examining on oath; compelling production of books and documents; issuing commissions

Section 246(1) gives these powers to the Commissioner (Appeals) and Joint Commissioner (Appeals), among other authorities, when trying a suit under the Code of Civil Procedure, 1908.

Appealable orders

Section 362(1): orders of CIT(A)/JCIT(A) and other listed orders

Learn the main group (CIT(A)/JCIT(A) orders) first, then the listed orders of PCIT/CIT, higher authorities, DRP-based orders and section 234(4) orders.

Time limit for appeal

Two months from the end of the month in which the order is communicated

Section 362(3). Applies to appeals by the assessee and by the department under 362(2). Delay can be condoned for sufficient cause (362(5)).

Cross-objections

Within 30 days of receipt of notice of the other party's appeal

Section 362(4). Allowed even if the party did not appeal. Treated as an appeal filed in time. No fee under 362(7).

Appeal fee

Income ≤ ₹1,00,000: ₹500 | above ₹1,00,000 up to ₹2,00,000: ₹1,500 | above ₹2,00,000: 1% of assessed income, maximum ₹10,000 | other matters: ₹500

Section 362(6). Income means total income computed by the Assessing Officer in the case. Stay application: ₹500 (362(8)).

No fee cases

Department's appeal under 362(2) and cross-objections under 362(4)

Section 362(7).

Next appeal

High Court within 120 days, only on a substantial question of law

Section 365. The High Court may condone delay for sufficient cause.

Appeal to High Court

Order of Appellate Tribunal + substantial question of law → appeal under section 365

The High Court must be satisfied that the case involves a substantial question of law.

Time limit for High Court appeal

120 days from the date the order appealed against is received

Section 365(2)(a). Applies to the assessee and to the department. Late appeal can be admitted for sufficient cause under section 365(3).

Form of appeal

Memorandum of appeal stating the substantial question of law precisely

Section 365(2)(b).

Who may file

Principal Chief Commissioner, Chief Commissioner, Principal Commissioner, Commissioner or the assessee

Section 365(2). The assessee must be aggrieved by the Tribunal order.

Scope of hearing

Appeal is heard only on the question formulated by the High Court

Section 365(5). Exception under 365(6): another substantial question, for reasons recorded.

Effect of judgment

Assessing Officer gives effect on a certified copy of the judgment

Section 365(10). Same method applies after a Supreme Court order that varies or reverses the High Court under section 368(3).

Supreme Court hearing

Code of Civil Procedure, 1908 applies as in appeals from High Court decrees; costs at the Court's discretion

Section 368(1) and (2).

Identical question: assessee declaration (section 375)

Declaration to AO or appellate authority; if claim admitted, case decided without waiting; final decision then applied

Section 375(3) to (6). The assessee cannot raise the question later in the relevant case.

Identical question: department appeal (section 376)

Collegium may direct no appeal now; application within 120 days; later appeal within 60 days to Tribunal or 120 days to High Court

Section 376(3) and (6). Collegium means two or more Chief Commissioners, Principal Commissioners or Commissioners, as specified by the Board.

Time to respond to draft order

Eligible assessee: accept or object within 30 days of receipt of the draft order

Objections are filed with both the DRP and the Assessing Officer. Section 275(2).

Who is an eligible assessee

Variation arising from TPO order under section 166(6), OR a non-resident (not a company), OR a foreign company

Persons under section 292(1) or section 295 are excluded. Section 275(17) and (18).

DRP time limit

No direction after 9 months from the end of the month in which the draft order is forwarded

Section 275(13).

Final order after DRP directions

Assessing Officer completes assessment within 1 month from the end of the month of receipt of directions, conforming to them

No further hearing to the assessee. Section 275(14).

Final order without objection

Within 1 month from the end of the month in which acceptance is received or the objection period expires

Section 275(4), as substituted w.e.f. 1-4-2026.

DRP powers

Confirm, reduce or enhance the variation. Cannot set aside or direct further enquiry and fresh order

Section 275(8). It may enhance on matters not raised by the assessee (section 275(9)).

Appeal effect

Order passed in pursuance of DRP directions is not appealable to Commissioner (Appeals) under section 357

See section 357(d) and (e).

Quick revision

• Tribunal appeal: filed within two months from the end of the month in which the order is communicated (section 362(3)).
• Tribunal fee: ₹500 up to ₹1,00,000 income; ₹1,500 above ₹1,00,000 up to ₹2,00,000; 1% of assessed income above ₹2,00,000, capped at ₹10,000.
• Other Tribunal matters not covered by the income slabs carry a ₹500 fee.
• No fee is payable for the department's appeal or for cross-objections.
• Stay application before the Tribunal: fee of ₹500.
• Cross-objections: within 30 days of receiving notice of the other party's appeal, even if you did not appeal.
• Tribunal can admit a late appeal or cross-objection if there is sufficient cause.
• High Court appeal lies only if the case involves a substantial question of law.
• High Court appeal: within 120 days, in a memorandum precisely stating the substantial question of law (section 365(2)).
• The High Court formulates the question and hears the appeal on it, but may hear another substantial question for reasons recorded.
• Section 375: assessee gives a declaration that he will not raise the identical question if the final decision is applied.
• Section 376: collegium may tell the Commissioner not to appeal now; application to the Tribunal or High Court within 120 days.

Common mistakes

• Saying every Assessing Officer order can be appealed to the Joint Commissioner (Appeals). Fix: Only the orders listed in section 356(1) are appealable there. Quote the clause that matches.
• Ignoring the bar in section 356(2). Fix: Always ask who passed the order or approved it. If an authority above Deputy Commissioner did, no appeal lies to the Joint Commissioner (Appeals).
• Appealing against an order that is not listed Fix: Match the order to the list first: intimation with adjustments, assessment, penalty or amending order.
• Ignoring the approval bar Fix: If the order was passed with prior approval of an authority above Deputy Commissioner, say that the appeal does not lie to the Joint Commissioner (Appeals).
• Saying the Commissioner (Appeals) can enhance an assessment without any notice. Fix: Always add: only after the appellant has had a reasonable opportunity of showing cause under section 360(2).
• Thinking the authority can only decide the grounds the appellant raised. Fix: Quote section 360(3): any matter arising out of the proceedings may be decided, even if not raised by the appellant.
• Counting two months from the date of the order or from the date of receipt. Fix: Count from the end of the month in which the order is communicated. An order communicated on 10 March gives a deadline of 31 May.
• Charging the fee on returned income or on the amount of tax in dispute. Fix: The fee is based on total income as computed by the Assessing Officer in the case to which the appeal relates.
• Writing that the High Court hears appeals on facts. Fix: Say the High Court hears only a substantial question of law. Facts are final at the Tribunal.
• Counting 120 days from the date of the Tribunal order. Fix: Section 365(2)(a) counts from the date the order is received by the assessee or the officer.

Exam tips

• Begin answers with the section for the forum, then facts, then conclusion. Examiners reward this structure.
• Learn the clauses of section 356(1) as a short list and attach each to a type of order.
• Always test the section 356(2) bar when a question mentions a Principal Commissioner or higher approval.
• For section 375 and 376 questions, state the conditions, the effect of admission and when the final decision is applied.
• Mention faceless appeals under section 356(5) only as a scheme the Central Government may notify, not as a general rule.
• Write the provision first, then apply the facts, then conclude. Examiners reward this order.
• Always test for the approval bar and the listed-order requirement in case facts.
• Memorise the sequence of limits in the appeal chain, and write them separately for each forum.