Section 360 — Powers of CIT(A) | ITA 2025

Section 360 — - POWERS OF JCIT(A) / CIT(A)

Section 360 is the substantive equivalent of 1961 s. 251 -- the framework for FIRST APPELLATE AUTHORITY POWERS in disposing appeals. The provision provides COMPREHENSIVE POWERS to confirm / reduce / enhance / annul the AO's assessment / penalty order; remand for fresh consideration; pass any other order. The appellate authority has WIDE-RANGING jurisdiction to revisit AO's order on facts and law. Critical for assessees to understand scope of relief / risk of enhancement.

Statutory text — Income-tax Act, 2025

Marginal note -- Powers of JCIT(A) / CIT(A)

360.

(1) In disposing of an appeal, the Commissioner (Appeals) or the Joint Commissioner (Appeals), shall have the following powers:—

(a) in an appeal against an order of assessment, he may confirm, reduce, enhance or annul the assessment;

(b) where such appeal is against an order of assessment made under section 271, the Commissioner (Appeals) may set aside the assessment and refer the case back to the Assessing Officer for making a fresh assessment;

(c) in an appeal against the order of assessment for which the proceeding before the Settlement Commission abates under section 245HA of the Income-tax Act, 1961 (43 of 1961), the Commissioner (Appeals) may, after taking into consideration all the material and other information produced by the assessee before, or the results of the inquiry held or evidence recorded by, the Settlement Commission, in the course of the proceeding before it and such other material as may be brought on his record, confirm, reduce, enhance or annul the assessment;

(d) in an appeal against an order imposing a penalty, he may confirm or cancel such order or vary it so as either to enhance or to reduce the penalty;

(e) in any other case, he may pass such orders in the appeal as he thinks fit.

(2) The Joint Commissioner (Appeals) or the Commissioner (Appeals), shall not enhance an assessment or a penalty or reduce the amount of refund, unless the appellant has had a reasonable opportunity of showing cause against such enhance- ment or reduction.

(3) The Joint Commissioner (Appeals) or the Commissioner (Appeals), may consider and decide any matter arising out of the proceedings in which the order appealed against was passed, irrespective of the fact that such matter was not raised before him by the appellant. 2.—Appeals to Appellate Tribunal. Appellate Tribunal.

Corresponding provision — 1961 regime

INCOME-TAX ACT, 2025	INCOME-TAX ACT, 1961
INCOME-TAX ACT, 2025 -- s. 360	INCOME-TAX ACT, 1961 -- s. 251
Sub-s. (1)(a) -- Confirm / reduce / enhance / annul assessment	1961 s. 251(1)(a)
Sub-s. (1)(b) -- Confirm / cancel / enhance / reduce penalty	1961 s. 251(1)(b)
Sub-s. (1)(c) -- Pass any other order on appeal	1961 s. 251(1)(c)
Sub-s. (2) -- Enhancement requires show-cause	1961 s. 251(2)
No power to remand (post FA 2008)	1961 s. 251(1)(a) Proviso [FA 2001]

ASSESSMENT APPEALS (sub-s. 1(a)): (a) CONFIRM -- order stands; tax demand confirmed; (b) REDUCE -- assessment reduced; tax demand correspondingly reduced; refund possible; (c) ENHANCE -- assessment increased beyond AO's order (subject to show-cause sub-s. 2); (d) ANNUL -- order set aside; assessment void; tax demand cancelled. PENALTY APPEALS (sub-s. 1(b)): same four powers (confirm / reduce / cancel / enhance). RESIDUAL POWER (sub-s. 1(c)): pass any other order necessary in appeal. ENHANCEMENT SAFEGUARD (sub-s. 2): before enhancement, JCIT(A) / CIT(A) must give appellant SHOW-CAUSE notice with reasonable opportunity to respond. Constitutional natural-justice protection. POST-FA 2001 LIMITATION: power to REMAND case to AO for fresh consideration WITHDRAWN. CIT(A) must DECIDE THE APPEAL ITSELF (cannot send back). Exception: s. 359 procedural matters / specific direction in remand-by-ITAT scenarios.

PRACTITIONER NOTES

(i) ENHANCEMENT RISK -- appellate scope wide; carefully assess risk of enhancement before filing appeal. (ii) NEW GROUNDS BY APPELLANT -- generally permissible if facts on record. (iii) NEW GROUNDS BY APPELLATE AUTHORITY (for enhancement) -- require show-cause. (iv) NO REMAND POST-FA 2001 -- ensure adequate evidence before AO; appellate authority cannot send back. (v) STRATEGIC GROUND-SELECTION -- choose grounds carefully; don't open up issues that may invite enhancement.

CROSS-REFERENCES

Section 357 -- CIT(A) appeals.
Section 358 -- Form.
Section 359 -- Procedure.
Section 362 -- ITAT appeals.
Section 363 -- ITAT orders.

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