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Advanced Direct Tax Laws and Practice · Appeals

Appeals to the Appellate Tribunal (ITAT) under the Income-tax Act, 2025

Updated 11 October 2026 · Fact-checked

An appeal to the Appellate Tribunal (ITAT) under section 362 of the Income-tax Act, 2025 lies against specified orders, mainly those of the Commissioner (Appeals) or Joint Commissioner (Appeals). File it within two months from the end of the month of communication, with the prescribed fee. The other side may file cross-objections within thirty days of notice.

Understand Appeals to the Appellate Tribunal

The Appellate Tribunal is the second appellate forum. The first appeal goes to the Joint Commissioner (Appeals) or Commissioner (Appeals). If you or the department are unhappy with that order, the next step is the Tribunal. After that, only a substantial question of law can go to the High Court under section 365.

Who can appeal. Under section 362(1), an assessee aggrieved by an order can appeal. The orders covered are: orders of the Commissioner (Appeals) or Joint Commissioner (Appeals); certain orders of the Principal Commissioner or Commissioner (listed in the section, including those under sections 332(7), (8) or (9), 351(2)(ii), 354(3), 377, 439 and 465); certain orders of higher authorities under section 377 or 465; orders of the Assessing Officer under section 270(10) or 279 that follow Dispute Resolution Panel directions; similar orders passed with approval under section 274(12); and orders under section 234(4). Orders amending these under section 287 (or 288 for the approval-based orders) are also covered.

Department's appeal. The Principal Commissioner or Commissioner who objects to an order of the Commissioner (Appeals) or Joint Commissioner (Appeals) can direct the Assessing Officer to appeal to the Tribunal (section 362(2)). The department does not pay a fee for this.

Time and fee. The appeal is filed within two months from the end of the month in which the order is communicated. The Tribunal can condone delay if there was sufficient cause. The fee depends on the total income assessed by the Assessing Officer. A stay application carries a separate fee.

Cross-objections. If the other party appeals, you can file a memorandum of cross-objections within thirty days of receiving notice, even if you did not appeal yourself. It is treated as if filed in time. No fee is payable for it.

Key rules to remember

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.

How to solve Appeals to the Appellate Tribunal questions

Use this order for any case question on appeals to the Tribunal: provision, analysis of facts, conclusion.

  1. 1Identify who is appealing: assessee or department. Note the order appealed against and who passed it.
  2. 2Check that the order falls within section 362(1) (or that the department is acting under 362(2)).
  3. 3Work out the date of communication and compute the deadline: the end of that month plus two months.
  4. 4Compare the filing date with the deadline. If late, discuss condonation for sufficient cause under 362(5).
  5. 5Compute the fee from the total income assessed by the Assessing Officer, using the slabs in 362(6). Remember the cap of ₹10,000.
  6. 6If the other side has appealed, apply the thirty-day cross-objection rule and the no-fee rule.
  7. 7State the conclusion clearly. Mention the next remedy: a High Court appeal under section 365 only on a substantial question of law, within 120 days.

Quickest way: Four checks for a Tribunal appeal

When to use it: Use when a short fact pattern asks whether an appeal is valid, in time, or what fee applies.

  1. Order check: is it a CIT(A)/JCIT(A) order or another order listed in 362(1)?
  2. Date check: end of month of communication + 2 months.
  3. Fee check: income slab, 1% capped at ₹10,000.
  4. Cross-objection check: 30 days from notice, no fee.

Common mistakes in Appeals to the Appellate Tribunal

  • Counting two months from the date of the order or from the date of receipt.

    Students carry over the idea of a fixed number of days from 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.

    The word income is read loosely.

    Fix: The fee is based on total income as computed by the Assessing Officer in the case to which the appeal relates.

  • Forgetting the ₹10,000 cap on the 1% fee.

    Students stop after computing 1%.

    Fix: Always compare 1% of assessed income with ₹10,000 and take the lower.

  • Saying the department pays a fee or that cross-objections need one.

    Students assume every filing carries a fee.

    Fix: Section 362(7) exempts appeals under 362(2) and cross-objections under 362(4).

  • Treating the cross-objection period as two months.

    It is confused with the appeal period.

    Fix: Cross-objections must be filed within thirty days of receipt of notice of the appeal.

  • Taking an appeal to the High Court as a matter of right on facts.

    Students blur the Tribunal and High Court stages.

    Fix: The High Court hears the appeal only if satisfied that the case involves a substantial question of law, and the appeal is heard on the question formulated.

Worked examples

Example 1

Mehta Textiles Pvt. Ltd. received an order of the Commissioner (Appeals) on 18 August 2026 which partly confirmed an addition. The Assessing Officer had computed its total income at ₹46,50,000. It wants to appeal to the Tribunal. State the last date for filing and the fee.

Show the solution
  1. Provision: section 362(1)(a) allows an assessee to appeal against an order of the Commissioner (Appeals).
  2. Time limit under 362(3): two months from the end of the month of communication.
  3. The order was communicated in August 2026, which ends on 31 August 2026. Two months from then is 31 October 2026.
  4. Fee under 362(6)(c): total income exceeds ₹2,00,000, so the fee is 1% of assessed income, subject to ₹10,000.
  5. 1% of ₹46,50,000 = ₹46,500. This exceeds ₹10,000, so the cap applies.

Answer: The appeal must be filed by 31 October 2026, and the fee is ₹10,000. A late appeal needs the Tribunal to be satisfied of sufficient cause under section 362(5).

Example 2

The Principal Commissioner objects to an order of the Commissioner (Appeals) in favour of Rao & Sons, and the order was communicated to him on 5 January 2027. The Assessing Officer files the appeal in due time. Rao & Sons did not appeal earlier because it won on most issues, but it received notice of the department's appeal on 20 March 2027 and wants to challenge one adverse part. Advise on the department's fee, the time limit and the remedy for Rao & Sons.

Show the solution
  1. Section 362(2) lets the Principal Commissioner direct the Assessing Officer to appeal against the order.
  2. Time limit under 362(3): two months from the end of January 2027, which is 31 March 2027.
  3. Fee: section 362(7) says no fee is payable for an appeal under 362(2).
  4. Rao & Sons can file a memorandum of cross-objections under 362(4) within thirty days of receiving notice, even though it did not appeal.
  5. Thirty days from 20 March 2027 ends on 19 April 2027.
  6. No fee is payable for cross-objections under 362(7), and they are treated as filed within the time in 362(3).

Answer: The department's appeal is due by 31 March 2027 and carries no fee. Rao & Sons may file cross-objections by 19 April 2027, also without fee.

Exam tips

  • Write the section number with every rule: 362(3) for time, 362(4) for cross-objections, 362(6) for fees, 365 for High Court.
  • In case questions, always compute the deadline and the fee with figures. Marks are awarded for the working.
  • Mention condonation of delay for sufficient cause under 362(5) and 365(3) whenever a date is missed.
  • Do not cite section 260A or other 1961 Act provisions as the main rule. Use the 2025 Act unless asked to contrast.
  • Close each answer with the next remedy, so the examiner sees you know the hierarchy.

Practice questions from Appeals

Appeals to the Appellate Tribunal in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

Appeals to the Appellate Tribunal: frequently asked questions

What is the time limit to appeal to the ITAT under the Income-tax Act, 2025?

Two months from the end of the month in which the order is communicated to the assessee or to the Principal Commissioner or Commissioner. The Tribunal can admit a late appeal if there was sufficient cause.

Can I file cross-objections if I did not appeal?

Yes. On receiving notice that the other party has appealed, you can file a memorandum of cross-objections within thirty days, against any part of the order. It is treated as an appeal presented in time and no fee is payable.

What is the fee for an appeal to the Appellate Tribunal?

It is ₹500 if assessed total income is ₹1,00,000 or less, ₹1,500 if above ₹1,00,000 up to ₹2,00,000, and 1% of assessed income capped at ₹10,000 if above ₹2,00,000. Other matters carry ₹500. A stay application needs ₹500.

Can the department appeal to the ITAT?

Yes. If the Principal Commissioner or Commissioner objects to an order of the Commissioner (Appeals) or Joint Commissioner (Appeals), he can direct the Assessing Officer to appeal to the Tribunal. No fee is payable for it.

Where does the next appeal lie after the ITAT?

An appeal lies to the High Court under section 365 if it is satisfied that the case involves a substantial question of law. It must be filed within 120 days of receiving the Tribunal's order, and delay can be condoned for sufficient cause.