Powers of Joint Commissioner (Appeals) or Commissioner (Appeals)
[Section-360 as per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]
Section 360(1) of Income Tax Act 2025
360(1) In disposing of an appeal, the Commissioner (Appeals) or the Joint Commissioner (Appeals), shall have the following powers:—
- (a) in an appeal against an order of assessment, he may confirm, reduce, enhance or annul the assessment;
- (b) where such appeal is against an order of assessment made under section 271, the Commissioner (Appeals) may set aside the assessment and refer the case back to the Assessing Officer for making a fresh assessment;
- (c) in an appeal against the order of assessment for which the proceeding before the Settlement Commission abates under section 245HA of the Income-tax Act 1961, the Commissioner (Appeals) may, after taking into consideration all the material and other information produced by the assessee before, or the results of the inquiry held or evidence recorded by, the Settlement Commission, in the course of the proceeding before it and such other material as may be brought on his record, confirm, reduce, enhance or annul the assessment;
- (d) in an appeal against an order imposing a penalty, he may confirm or cancel such order or vary it so as either to enhance or to reduce the penalty;
- (e) in any other case, he may pass such orders in the appeal as he thinks fit.
Section 360(2) of Income Tax Act 2025
360(2) The Joint Commissioner (Appeals) or the Commissioner (Appeals), shall not enhance an assessment or a penalty or reduce the amount of refund, unless the appellant has had a reasonable opportunity of showing cause against such enhancement or reduction.
Section 360(3) of Income Tax Act 2025
360(3) The Joint Commissioner (Appeals) or the Commissioner (Appeals), may consider and decide any matter arising out of the proceedings in which the order appealed against was passed, irrespective of the fact that such matter was not raised before him by the appellant.
FAQs on Section 360 of Income Tax Act 2025
What powers does the Commissioner (Appeals) or Joint Commissioner (Appeals) have in disposing of an appeal against an assessment order?
They may confirm, reduce, enhance, or annul the assessment.
Can the Commissioner (Appeals) refer a case back to the Assessing Officer?
Yes, in appeals against assessment orders made under section 271, the Commissioner (Appeals) may set aside the assessment and refer the case back to the Assessing Officer for a fresh assessment.
What powers does the Commissioner (Appeals) have in cases where proceedings before the Settlement Commission have abated?
He may, after considering all material produced before the Settlement Commission and any other relevant material, confirm, reduce, enhance, or annul the assessment.
Can the Commissioner (Appeals) or Joint Commissioner (Appeals) vary a penalty imposed by the Assessing Officer?
Yes, they can confirm, cancel, enhance, or reduce the penalty.
What powers do they have in appeals other than those related to assessments or penalties?
They may pass such orders as they think fit in the appeal.
Can the Commissioner (Appeals) or Joint Commissioner (Appeals) enhance an assessment or penalty without giving notice to the appellant?
No, they must give the appellant a reasonable opportunity to show cause against such enhancement or reduction.
Is the opportunity to be heard mandatory before reducing any refund amount in appeal?
Yes, a reasonable opportunity must be provided before reducing the amount of refund.
Can the Commissioner (Appeals) or Joint Commissioner (Appeals) decide on matters not specifically raised in the appeal?
Yes, they may consider and decide any matter arising out of the proceedings in which the order appealed against was passed, even if it was not raised by the appellant.
Do the powers of the Commissioner (Appeals) and Joint Commissioner (Appeals) differ in any way under Section 360?
Yes, under clause (b) of Section 360(1), only the Commissioner (Appeals) has the power to set aside assessments made under section 271 and refer them back to the Assessing Officer. This power is not granted to the Joint Commissioner (Appeals).
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