Section 361 — Appellate Tribunal | ITA 2025

Section 361 — - APPELLATE TRIBUNAL

Section 361 is the substantive equivalent of 1961 s. 252 -- the foundational provision establishing the INCOME TAX APPELLATE TRIBUNAL (ITAT). The provision establishes ITAT as an INDEPENDENT QUASI-JUDICIAL BODY constituted under the Act -- separate from CBDT executive authority. ITAT comprises JUDICIAL members (qualified judges) and ACCOUNTANT members (qualified CAs / income-tax officers). ITAT is the SECOND APPELLATE FORUM (after CIT(A)) -- final fact-finding body. Subsequent appeals to High Court are LIMITED TO QUESTIONS OF LAW. Constitutional separation from departmental hierarchy; protective of taxpayer-rights.

Statutory text — Income-tax Act, 2025

Marginal note -- Appellate Tribunal

( 1) The Central Government shall constitute an Appellate Tribunal consisting of as many Judicial and Accountant Members as it thinks fit, to exercise the powers and discharge the functions conferred on the Appellate Tribunal by this Act.

(2) Irrespective of anything contained in this Act, the qualifications, appointment, term of office, salaries and allowances, resignation, removal and the other terms and conditions of service of the President, Vice-President and other Members of the Appellate Tribunal appointed,—

(a) after the commencement of the Tribunals Reforms Act, 2021 (33 of 2021), shall be governed by the provisions of Chapter II of the said Act;

(b) before the commencement of Part XIV of Chapter VI of the Finance Act, 2017 (7 of 2017), shall be governed by the provisions of the Income-tax Act, 1961 (43 of 1961) and the rules made thereunder, as if the provisions of section 184 of the Finance Act, 2017 (7 of 2017) had not come into force.

(3) The Central Government shall appoint—

(a) a person who is a sitting or retired Judge of a High Court and who has completed not less than seven years of service as a Judge in a High Court; or

(b) one of the Vice-Presidents of the Appellate Tribunal, to be the President thereof.

(4) The Central Government may appoint one or more members of the Appellate Tribunal to be the Vice-President or, Vice-Presidents thereof.

(5) The Vice-President shall exercise such of the powers and perform such of the functions of the President as may be delegated to him by the President by a general or special order in writing. Appeals to Appellate Tribunal.

Corresponding provision — 1961 regime

INCOME-TAX ACT, 2025	INCOME-TAX ACT, 1961
INCOME-TAX ACT, 2025 -- s. 361	INCOME-TAX ACT, 1961 -- s. 252
Sub-s. (1) -- ITAT constitution / President / members	1961 s. 252(1)
Sub-s. (2) -- Judicial / Accountant member qualifications	1961 s. 252(2)/(3)
Sub-s. (3)-(4) -- Powers / authority	1961 s. 252(4)/(5)
Sub-s. (5) -- Senior Vice-President / Vice-President	1961 s. 252(4A)
President's appointment	1961 s. 252(5)

STATUTORY ARCHITECTURE

ITAT STRUCTURE: (I) PRESIDENT -- typically retired Supreme Court / High Court judge; appointed by Central Government. (II) SENIOR VICE-PRESIDENT / VICE-PRESIDENTS -- senior members. (III) JUDICIAL MEMBERS: (a) Qualified to be judge of HC; OR (b) Senior advocate (10+ years); OR (c) Joint Secretary level officer; OR (d) Additional CIT level (or higher) for 3+ years. (IV) ACCOUNTANT MEMBERS: (a) Senior CA (10+ years); OR (b) Income-tax officer of Joint CIT level (or higher) for 3+ years; OR (c) Member of Indian Audit and Accounts Service. (V) BENCHES: typical 2-member benches (1 judicial + 1 accountant); 3-member or larger for important cases. (VI) JURISDICTION: ITAT-Bangalore (Karnataka), ITAT-Mumbai (Maharashtra), ITAT-Delhi (Delhi NCR), etc. -- multiple regional benches. (VII) HEAD OFFICE -- Mumbai. (VIII) Independence: not subordinate to CBDT / Department; quasi-judicial; final fact-finding body.

ROLE IN APPELLATE HIERARCHY

APPELLATE HIERARCHY: (a) Tier 1: AO / IAO -- original assessment; (b) Tier 2: JCIT(A) / CIT(A) / NFAC -- first appellate (within Department); (c) Tier 3: ITAT -- second appellate (independent quasi-judicial); FACTS AND LAW; (d) Tier 4: HIGH COURT -- only QUESTION OF LAW; (e) Tier 5: SUPREME COURT -- substantial question of law. ITAT IS THE FINAL FACT-FINDING FORUM -- HC does not re-examine facts. Strategic implication: ITAT decision on facts is essentially final; HC challenges limited to legal issues.

PRACTITIONER NOTES

(i) ITAT BENCHING -- appropriate selection of bench location based on PAN-jurisdictional area. (ii) MEMBER COMPOSITION -- judicial-accountant balance; complex matters benefit from 3-member benches. (iii) HC APPEAL SCOPE -- limited to legal issues; ITAT is final on facts. (iv) PRECEDENT VALUE -- ITAT decisions BINDING on lower authorities (AO / CIT(A)) for that bench's jurisdiction; persuasive across other benches; HC decisions binding within HC's territorial jurisdiction. (v) PRESIDENT'S BENCHES -- larger benches for important matters; reference of conflicting decisions across benches.

CROSS-REFERENCES

Section 362 -- ITAT appeals.
Section 363 -- ITAT orders.
Section 364 -- ITAT procedure.
Section 365 -- HC appeal.
Section 367 -- SC appeal.

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