Tax to be paid irrespective of appeal, etc.
[Section-369 as per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]
Irrespective of the fact that an appeal has been preferred to the High Court or the Supreme Court, tax shall be payable as per the assessment made in the case.
FAQs on Section 369 of Income Tax Act 2025
What does Section 369 of the Income Tax Act, 2025 state?
It states that tax must be paid as per the assessment made in a case, regardless of whether an appeal has been filed with the High Court or the Supreme Court.
Does filing an appeal to a higher court suspend the liability to pay tax?
No, the liability to pay tax remains intact even if an appeal is filed to the High Court or Supreme Court.
Can tax recovery proceedings be initiated even if an appeal is pending?
Yes, tax recovery can be initiated because the tax is payable as assessed, irrespective of the pending appeal.
Is there any exception provided in Section 369 regarding deferment of tax payment?
No, Section 369 does not provide any exception; tax remains payable as assessed regardless of any appeal.
Does this provision apply only to appeals before the Supreme Court?
No, it applies to appeals before both the High Court and the Supreme Court.
What is the effective date of implementation for Section 369?
Section 369 comes into effect from 1st April, 2026.
Can a taxpayer seek a stay on tax payment due to pending appeal under Section 369?
Section 369 itself does not provide for a stay; however, any stay must be sought separately as per applicable legal procedures outside of this specific section.
If the appeal is decided in the taxpayer’s favor, will the tax paid as per the assessment be refunded?
Yes, if the appeal results in a favorable decision for the taxpayer, and the assessment is altered, any excess tax paid may be refunded as per the revised assessment.
Why is tax required to be paid even when a dispute is pending in higher courts?
This ensures continuity and certainty in revenue collection for the government, regardless of pending litigation.
Does Section 369 override other provisions that allow deferral or stay of tax demand?
Section 369 mandates payment regardless of appeal, but it does not explicitly override other sections; however, its language enforces payment at the assessment stage.
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