Section 359 is the substantive equivalent of 1961 s. 250 -- the procedural framework for FIRST-TIER APPEAL hearing and disposal at JCIT(A) / CIT(A). The provision governs: (a) hearing notice to appellant + AO; (b) opportunity for parties…
359
ITA 2025 · Section 359
Section 359 — - PROCEDURE IN APPEAL
Section 359 is the substantive equivalent of 1961 s. 250 -- the procedural framework for FIRST-TIER APPEAL hearing and disposal at JCIT(A) / CIT(A). The provision governs: (a) hearing notice to appellant + AO; (b) opportunity for parties to be heard; (c) AO's right to participate; (d) appellant's right to produce evidence; (e) decision on grounds raised + power of enhancement; (f) order communication; (g) target time-frame for disposal. Critical for understanding appellate dynamics; appellant typically gets multiple opportunities for evidence / arguments.
PROCEDURAL ARCHITECTURE: (I) HEARING NOTICE: JCIT(A) / CIT(A) gives notice to: (a) APPELLANT (or authorised representative); (b) AO who passed order. (II) HEARING PROCEDURE: (a) Both parties may produce evidence / arguments; (b) Cross-examination opportunity if relevant; (c) Faceless framework: written submissions; VC personal hearing on request. (III) POWER OF ENHANCEMENT (sub-s. 3): (a) Appellate authority can ENHANCE the assessment beyond AO's order if material warrants; (b) Pre-condition: SHOW-CAUSE to appellant; opportunity to respond; (c) Constitutional / natural-justice safeguards. (IV) APPELLATE ORDER (sub-s. 4): (a) Within reasonable time; CBDT instructions suggest 6-12 months; not statutorily binding; (b) Post FA 2020, faceless appellate disposal targets 6 months. (V) REASONED ORDER (sub-s. 5): order must be REASONED -- record findings on each ground; cite authorities relied upon; address appellant's arguments. (VI) ORDER COMMUNICATION: order communicated to appellant + AO; appeal-against-order rights preserved (60-day ITAT window).
PRACTITIONER NOTES
(i) HEARING ATTENDANCE -- attend personally / representative; document arguments / submissions. (ii) ENHANCEMENT NOTICE -- if received, comprehensive defence; show-cause response with case law. (iii) ADDITIONAL EVIDENCE -- submit timely; appellate authority may admit per Rule 46A discretion. (iv) FACELESS HEARING -- request VC for significant cases. (v) ORDER REVIEW -- check for reasoned findings on each ground; non-application of mind = appellate ground at ITAT. (vi) TIMING -- 6 months indicative; pursuing diligently helps avoid delay.
CROSS-REFERENCES