Appeal to High Court
[Section-365 as per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]
Section 365(1) of Income Tax Act 2025
365(1) An appeal shall lie to the High Court from every order passed in appeal by the Appellate Tribunal, if the High Court is satisfied that the case involves a substantial question of law.
Section 365(2) of Income Tax Act 2025
365(2) The Principal Chief Commissioner or Chief Commissioner or the Principal Commissioner or Commissioner or an assessee aggrieved by any order passed by the Appellate Tribunal may file an appeal to the High Court and such appeal under this sub-section shall be—
- (a) filed within one hundred twenty days from the date on which the order appealed against is received by the assessee or the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner;
- (b) in the form of a memorandum of appeal precisely stating therein the substantial question of law involved.
Section 365(3) of Income Tax Act 2025
365(3) Where the High Court is satisfied that there was sufficient cause for not filing the appeal within one hundred twenty days, it may admit an appeal after the said period.
Section 365(4) of Income Tax Act 2025
365(4) Where the High Court is satisfied that a substantial question of law is involved in any case, it shall formulate that question.
Section 365(5) of Income Tax Act 2025
365(5) The appeal shall be heard only on the question so formulated, and the respondents shall, at the hearing of the appeal, be allowed to argue that the case does not involve such question.
Section 365(6) of Income Tax Act 2025
365(6) The provisions of sub-section (5) shall not take away or abridge the power of the court to hear, for reasons to be recorded, the appeal on any other substantial question of law not formulated by it, if it is satisfied that the case involves such question.
Section 365(7) of Income Tax Act 2025
365(7) The High Court shall decide the question of law so formulated and deliver such judgment thereon containing the grounds on which such decision is founded and may award such cost as it deems fit.
Section 365(8) of Income Tax Act 2025
365(8) The High Court may determine any issue which the Appellate Tribunal,––
- (a) has not determined; or
- (b) has wrongly determined, by reason of a decision on such question of law as is referred to in sub-section (1).
Section 365(9) of Income Tax Act 2025
365(9) Save as otherwise provided in this Act, the provisions of the Code of Civil Procedure, 1908, relating to appeals to the High Court shall, as far as may be, apply in the case of appeals under this section.
Section 365(10) of Income Tax Act 2025
365(10) Where the High Court delivers a judgment in an appeal filed before it under this section, effect shall be given to such order by the Assessing Officer, on the basis of a certified copy of the judgment.
FAQs on Section 365 of Income Tax Act 2025
Who can file an appeal to the High Court under section 365 of the Income Tax Act, 2025?
An appeal can be filed by the Principal Chief Commissioner, Chief Commissioner, Principal Commissioner, Commissioner, or the assessee aggrieved by any order passed by the Appellate Tribunal.
On what grounds can an appeal be filed to the High Court?
An appeal can be filed if the High Court is satisfied that the case involves a substantial question of law.
What is the time limit for filing an appeal to the High Court?
The appeal must be filed within 120 days from the date on which the order appealed against is received.
Is there any format required for filing the appeal?
Yes, the appeal should be in the form of a memorandum of appeal precisely stating the substantial question of law involved.
Can the High Court allow an appeal after 120 days?
Yes, if the High Court is satisfied that there was sufficient cause for not filing the appeal within 120 days, it may admit the appeal after the prescribed period.
What is the role of the High Court upon being satisfied that a substantial question of law is involved?
The High Court shall formulate the substantial question of law.
Will the High Court hear arguments only on the formulated question of law?
Yes, the appeal shall be heard only on the formulated question, but the respondents can argue that the case does not involve such a question.
Can the High Court consider other substantial questions of law not initially formulated?
Yes, for reasons to be recorded, the High Court may hear the appeal on any other substantial question of law not formulated initially if it is satisfied that the case involves such a question.
What is the duty of the High Court after hearing the appeal?
The High Court shall decide the formulated question of law and deliver a judgment containing the grounds of its decision and may award costs as it deems fit.
Can the High Court decide issues not determined or wrongly determined by the Appellate Tribunal?
Yes, the High Court may determine any issue that the Appellate Tribunal has either not determined or has wrongly determined due to a decision on a substantial question of law.
Do the provisions of the Code of Civil Procedure, 1908 apply to such appeals?
Yes, the provisions relating to appeals to the High Court under the Code of Civil Procedure, 1908, apply as far as may be, unless otherwise provided in the Act.
How is the judgment of the High Court given effect to?
The Assessing Officer shall give effect to the judgment of the High Court on the basis of a certified copy of the judgment.
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