Filing of appeal or by income-tax authority
[Section-373 as per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]
Section 373(1) of Income Tax Act 2025
373(1) The Board may, from time to time, issue orders, instructions or directions to other income-tax authorities, fixing such monetary limits as it may deem fit, for the purpose of regulating filing of appeal by any income-tax authority under the provisions of this Chapter.
Section 373(2) of Income Tax Act 2025
373(2) Where, in pursuance of the orders, instructions or directions issued under sub-section (1), an income-tax authority has not filed any appeal on any issue in the case of an assessee for any tax year, it shall not preclude such authority from filing an appeal on the same issue in the case of—
- (a) the same assessee for any other tax year; or
- (b) any other assessee for the same or any other tax year.
Section 373(3) of Income Tax Act 2025
373(3) Where even when no appeal has been filed by an income-tax authority pursuant to the orders or instructions or directions issued under sub-section (1), it shall not be lawful for an assessee, being a party in any appeal, to contend that the income-tax authority has acquiesced in the decision on the disputed issue by not filing an appeal in any case.
Section 373(4) of Income Tax Act 2025
373(4) The Appellate Tribunal or Court, hearing such appeal, shall have regard to the orders, instructions or directions issued under sub-section (1) and the circumstances under which such appeal was filed or not filed in respect of any case.
FAQS on Section 373 of Income Tax Act 2025
Who has the authority to issue instructions for regulating filing of appeals by income-tax authorities?
The Board has the authority to issue orders, instructions, or directions to income-tax authorities for regulating the filing of appeals.
What is the purpose of the Board’s instructions under Section 373(1)?
The instructions are meant to fix monetary limits or other criteria to regulate when an income-tax authority should file an appeal.
Do the monetary limits fixed under Section 373(1) apply uniformly to all cases?
No, the Board may specify different limits or conditions based on its discretion, and these may vary across cases or authorities.
If an income-tax authority does not file an appeal in one tax year for an assessee, can it file an appeal on the same issue in another year?
Yes, under Section 373(2)(a), the authority can file an appeal on the same issue in a different tax year for the same assessee.
Can an income-tax authority file an appeal on the same issue for a different assessee?
Yes, Section 373(2)(b) permits the filing of an appeal for the same or any other tax year in the case of a different assessee.
Does failure to file an appeal mean the income-tax authority has accepted the decision?
No, as per Section 373(3), the assessee cannot claim that the income-tax authority accepted or acquiesced to the decision simply because no appeal was filed.
Can an assessee use the non-filing of an appeal by the department as a defense in another case?
No, the assessee is not allowed to use the department’s non-filing of an appeal as a ground to argue acquiescence in any other proceeding.
What factors must the Appellate Tribunal or Court consider in appeals where instructions under Section 373(1) apply?
Under Section 373(4), the Appellate Tribunal or Court must consider the Board’s instructions and the context or circumstances under which the appeal was or was not filed.
Does Section 373 restrict the rights of income-tax authorities to file appeals in general?
No, it only regulates the circumstances under which appeals are filed, particularly by fixing monetary or procedural thresholds.
Are the instructions under Section 373(1) binding on appellate courts or tribunals?
No, but the courts or tribunals must have regard to them when dealing with appeals, as stated in Section 373(4).
Can different income-tax authorities have different appeal filing thresholds under Board’s orders?
Yes, the Board may specify varying limits for different authorities depending on its administrative discretion.
Is Section 373 applicable only to appeals filed by income-tax authorities?
Yes, it pertains specifically to the regulation of appeals filed by income-tax authorities, not by assessees.
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