Orders of Appellate Tribunal
[Section-363 as per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]
Section 363(1) of Income Tax Act 2025
363(1) The Appellate Tribunal may, after giving both the parties to the appeal an opportunity of being heard, pass such orders thereon as it thinks fit.
Section 363(2) of Income Tax Act 2025
363(2) The Appellate Tribunal may amend any order passed by it under sub-section (1) for the rectification of any mistake apparent from record, within six months from the end of the month in which the order was passed, if the mistake is brought to its notice by the assessee or the Assessing Officer.
Section 363(3) of Income Tax Act 2025
363(3) An amendment, as referred to in sub-section (2), which has the effect of enhancing an assessment or reducing a refund or otherwise increasing the liability of the assessee, shall not be made, unless the assessee has been allowed a reasonable opportunity of being heard.
Section 363(4) of Income Tax Act 2025
363(4) Any application filed by the assessee under sub-section (2) shall be accompanied by a fee of fifty rupees.
Section 363(5) of Income Tax Act 2025
363(5) In every appeal, the Appellate Tribunal, where it is possible, may hear and decide such appeal within four years from the end of the financial year in which such appeal is filed under section 362(1) or (2).
Section 363(6) of Income Tax Act 2025
363(6) The Appellate Tribunal may, after considering the merits of the application made by the assessee, pass an order of stay in any proceedings relating to an appeal filed under section 362(1), for a period not exceeding one hundred and eighty days from the date of such order, subject to the condition that the assessee––
- (a) deposits not less than 20% of the amount of tax, interest, fee, penalty or any other sum payable under this Act; or
- (b) furnishes security of equal amount as referred to in clause (a),
and the Appellate Tribunal shall dispose of the appeal within the said period of stay specified in that order.
Section 363(7) of Income Tax Act 2025
363(7) No extension of stay, as referred to in sub-section (6), shall be granted by the Appellate Tribunal, where such appeal is not so disposed of within the said period of stay as specified in the order of stay passed under the said sub-section, unless––
- (a) the assessee makes an application and has complied with the condition referred to in sub-section (6); and
- (b) the Appellate Tribunal is satisfied that the delay in disposing of the appeal is not attributable to the assessee,
so, however, that the aggregate of the period of stay originally allowed and the period of stay so extended shall not exceed three hundred and sixty-five days and the Appellate Tribunal shall dispose of the appeal within the period or periods of stay so extended or allowed.
Section 363(8) of Income Tax Act 2025
363(8) The order of stay shall stand vacated if the appeal is not disposed of within the period allowed under sub-section (6) or (7), even if the delay in disposing of the appeal is not attributable to the assessee.
Section 363(9) of Income Tax Act 2025
363(9) The cost of any appeal to the Appellate Tribunal shall be at the discretion of that Tribunal.
Section 363(10) of Income Tax Act 2025
363(10) The Appellate Tribunal shall send a copy of any orders passed under this section to the assessee and to the Principal Commissioner or Commissioner.
Section 363(11) of Income Tax Act 2025
363(11) Save as provided in section 365, orders passed by the Appellate Tribunal on appeal shall be final.
FAQs on Section 363 of Income Tax Act 2025
What powers does the Appellate Tribunal have while deciding an appeal under Section 363(1)?
The Appellate Tribunal may, after giving both parties to the appeal an opportunity of being heard, pass such orders on the appeal as it thinks fit.
Can the Appellate Tribunal amend its own orders?
Yes, the Appellate Tribunal may amend any order passed under Section 363(1) for rectification of any mistake apparent from the record within six months from the end of the month in which the order was passed, if such mistake is brought to its notice by the assessee or the Assessing Officer.
Is an assessee given a hearing before an amendment that increases tax liability is made?
Yes, if an amendment would enhance an assessment, reduce a refund, or otherwise increase the liability of the assessee, the assessee must be allowed a reasonable opportunity of being heard before the amendment is made.
Is there any fee for filing an application for rectification by the assessee?
Yes, an application by the assessee under Section 363(2) must be accompanied by a fee of fifty rupees.
Is there a timeline for the Appellate Tribunal to decide appeals?
Yes, where possible, the Appellate Tribunal shall hear and decide every appeal within four years from the end of the financial year in which the appeal is filed under Section 362(1) or (2).
Can the Appellate Tribunal grant a stay on recovery during the pendency of an appeal?
Yes, the Appellate Tribunal may pass a stay order for a period not exceeding 180 days if the assessee either deposits at least 20% of the tax or furnishes security of the same amount. The appeal must be disposed of within this stay period.
Can the stay granted by the Tribunal be extended beyond 180 days?
Yes, the stay can be extended provided the assessee applies for it, complies with the original stay conditions, and the Tribunal is satisfied that the delay in disposal is not due to the assessee. However, the total stay period cannot exceed 365 days.
What happens if the appeal is not disposed of within the stay period?
The stay order shall stand vacated if the appeal is not disposed of within the stay period specified under sub-section (6) or (7), even if the delay is not attributable to the assessee.
Who decides the cost of an appeal filed before the Appellate Tribunal?
The cost of any appeal lies at the discretion of the Appellate Tribunal.
Who receives a copy of the order passed by the Appellate Tribunal?
The Appellate Tribunal shall send a copy of its order to both the assessee and the Principal Commissioner or Commissioner.
Are orders passed by the Appellate Tribunal final?
Yes, except as provided under Section 365, the orders passed by the Appellate Tribunal on appeal are final.
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