Procedure in appeal
[Section-359 as per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]
Section 359(1) of Income Tax Act 2025
359(1) The Joint Commissioner (Appeals) or the Commissioner (Appeals) shall fix a day and place for the hearing of the appeal, and shall give notice of the same to the appellant and to the Assessing Officer against whose order the appeal is preferred.
Section 359(2) of Income Tax Act 2025
359(2) The following shall have the right to be heard at the hearing of the appeal:—
- (a) the appellant, either in person or by an authorised representative;
- (b) the Assessing Officer, either in person or by a representative.
Section 359(3) of Income Tax Act 2025
359(3) The Joint Commissioner (Appeals) or the Commissioner (Appeals) may––
- (a) adjourn the hearing of the appeal; or
- (b) make such further inquiry as he thinks fit, before disposing of any appeal, or may direct the Assessing Officer to make further inquiry and report the result of the same; or
- (c) allow the appellant to go into any ground of appeal not specified in the grounds of appeal, if he is satisfied that the omission of that ground from the form of appeal was not wilful or unreasonable.
Section 359(4) of Income Tax Act 2025
359(4) The order of the Joint Commissioner (Appeals) or the Commissioner (Appeals) disposing of the appeal shall be in writing and shall state the points for determination, the decision thereon and the reasons for the decision.
Section 359(5) of Income Tax Act 2025
359(5) The Joint Commissioner (Appeals) or the Commissioner (Appeals), where it is possible, may hear and decide such appeal within one year from the end of the financial year in which such appeal is filed or transferred to him under section 356.
Section 359(6) of Income Tax Act 2025
359(6) On the disposal of the appeal, the Joint Commissioner (Appeals) or the Commissioner (Appeals) shall communicate the order passed by him to the assessee and to the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner.
FAQs on Section 359 of Income Tax Act 2025
Who fixes the date and place for the hearing of an appeal under this section?
The Joint Commissioner (Appeals) or the Commissioner (Appeals) fixes the date and place for the hearing.
Who receives notice of the hearing of the appeal?
Both the appellant and the Assessing Officer against whose order the appeal is preferred receive the notice.
Who has the right to be heard during the hearing of an appeal?
The appellant (either in person or through an authorised representative) and the Assessing Officer (either in person or through a representative) have the right to be heard.
Can the appellate authority adjourn the hearing of the appeal?
Yes, the Joint Commissioner (Appeals) or Commissioner (Appeals) may adjourn the hearing.
Is the appellate authority allowed to conduct further inquiry?
Yes, the authority may conduct further inquiry or direct the Assessing Officer to do so and report back.
Can a new ground of appeal be introduced during the hearing?
Yes, the appellant may be allowed to raise a new ground if the authority is satisfied that its omission was not willful or unreasonable.
What must the order disposing of the appeal contain?
It must be in writing and must state the points for determination, the decision on those points, and the reasons for the decision.
Is there a time limit for disposing of an appeal?
Yes, where possible, the appeal should be decided within one year from the end of the financial year in which it was filed or transferred.
To whom is the order of disposal of the appeal communicated?
The order is communicated to the assessee and to the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner.
Does the section specify any format for the appeal order?
Yes, the order must be in writing and clearly lay out the issues decided and reasons for the decision.
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