Section 362 — Appeals to ITAT | ITA 2025

Section 362 — - APPEALS TO APPELLATE TRIBUNAL

Section 362 is the substantive equivalent of 1961 s. 253 -- the framework for FILING APPEALS TO ITAT. The provision specifies: (a) WHO can appeal (assessee + AO/Department); (b) AGAINST WHICH ORDERS appealable to ITAT; (c) FORM of appeal (Form 36); (d) LIMITATION (60 DAYS from CIT(A) order); (e) FEES based on assessed income; (f) cross-objections by respondent; (g) memorandum of appeal requirements. Critical procedural anchor for second-tier appeals; one of most-used litigation provisions.

Statutory text — Income-tax Act, 2025

Marginal note -- Appeals to Appellate Tribunal

(1) Any assessee, aggrieved by any of the following orders, may appeal to the Appellate Tribunal against such order—

(a) an order passed under this Act, by a Commissioner (Appeals) or a Joint Commissioner (Appeals); or

(b) an order passed by a Principal Commissioner or Commissioner under—

(i) section 332(7) or (8) or (9) or 351(2)(ii) or 354(3); or

(ii) section 377 or 439 or 465; or

(iii) section 287 amending any order as referred to in sub-clauses (i) and (ii):

(c) an order passed by a Principal Chief Commissioner or Chief Commis- sioner or a Principal Director General or Director General or a Principal Director or Director under section 377 or 465 or an order passed under section 287 amending any such order; or

(d) an order passed by an Assessing Officer under section 270(10) or 279, in pursuance of the directions of the Dispute Resolution Panel or an order passed under section 287 in respect of such order; or

(e) an order passed by an Assessing Officer under section 270(10) or 279, with the approval of the Principal Commissioner or Commissioner as referred to in section 274(12) or an order passed under section 287 or 288 in respect of such order; or

(f) an order passed by an Assessing Officer under section 234(4).

(2) The Principal Commissioner or Commissioner may, if he objects to any order passed by the Joint Commissioner (Appeals) or the Commissioner (Appeals) under this Act, direct the Assessing Officer to appeal to the Appellate Tribunal against the order.

(3) Every appeal under sub-section (1) or (2) shall be filed within two months from the end of the month in which the order sought to be appealed against is commu- nicated to the assessee or to the Principal Commissioner or Commissioner.

(4) The Assessing Officer or the assessee, on receipt of notice that an appeal against an order, has been preferred under sub-section (1) or (2) by the other party, may, irrespective of that he may not have appealed against such order or any part thereof, within thirty days of the receipt of the notice, file a memorandum of cross-objec- tions, verified in the manner, as may be prescribed, against any part of such order, and such memorandum shall be disposed of by the Appellate Tribunal as if it were an appeal presented within the time specified in sub-section (3).

(5) The Appellate Tribunal may admit an appeal or permit the filing of a memorandum of cross-objections after the expiry of the relevant period referred to in sub-section

(3) or (4), if it is satisfied that there was sufficient cause for not presenting it within that period.

(6) An appeal to the Appellate Tribunal shall be in such form and verified in such manner, as may be prescribed and shall, be accompanied by a fee of—

(a) ` 500, where the total income of the assessee as computed by the Assessing Officer, in the case to which the appeal relates, is ` 100000 or less;

(b) ` 1500, where the total income of the assessee, computed as aforesaid, in the case to which the appeal relates is more than ` 100000 but not more than ` 200000;

(c) an amount equal to 1% of the assessed income, subject to a maximum of ` 10000, where the total income of the assessee, computed as aforesaid, in the case to which the appeal relates is more than ` 200000;

(d) ` 500, where the subject matter of an appeal relates to any matter, other than those specified in clauses (a), (b) and (c).

(7) No fee shall be payable for an appeal referred to in sub-section (2), or a memo- randum of cross objections referred to in sub-section (4).

(8) An application for stay of demand shall be accompanied by a fee of ` 500. Orders of Appellate Tribunal.

Corresponding provision — 1961 regime

INCOME-TAX ACT, 2025	INCOME-TAX ACT, 1961
INCOME-TAX ACT, 2025 -- s. 362	INCOME-TAX ACT, 1961 -- s. 253
Sub-s. (1) -- Orders appealable to ITAT	1961 s. 253(1)
Sub-s. (2) -- AO / Dept appeal	1961 s. 253(2)
Sub-s. (3) -- 60-day limitation	1961 s. 253(3)
Sub-s. (4) -- Cross-objections by respondent (30 days)	1961 s. 253(4)
Sub-s. (5) -- Form / fees / signature	1961 s. 253(5)/(6)
Sub-s. (6) -- Condonation of delay	1961 s. 253(5)
Direct ITAT appeal -- DRP / GAAR / block / etc.	1961 s. 253(1) read with 144C / 158BC

STATUTORY ARCHITECTURE -- ELIGIBLE ORDERS

ORDERS APPEALABLE TO ITAT: (I) ORDERS UNDER s. 360 -- JCIT(A) / CIT(A) appellate orders; (II) DIRECT-ROUTE ORDERS (skip CIT(A)): (a) DRP-bound orders u/s 275; (b) GAAR Approving Panel-implemented orders u/s 274; (c) BLOCK ASSESSMENT orders u/s 294; (d) CIT-Revision orders u/s 377 / 378; (e) Specific procedural orders. (III) PENALTY ORDERS at appellate level. (IV) RECTIFICATION ORDERS at appellate level. FILING DETAILS: (a) FORM 36 (e-filing); (b) DEPT-SIDE: Form 36A; (c) FEES: -- Income < INR 1L: INR 500; -- Income INR 1L-2L: INR 1,500; -- Income > INR 2L: 1% of assessed income subject to maximum INR 10,000; -- Stay applications: INR 500. (d) LIMITATION: 60 DAYS from order receipt; (e) CONDONATION: ITAT can condone delay for sufficient cause.

CROSS-OBJECTIONS

CROSS-OBJECTIONS framework (sub-s. 4): (a) When one party (say assessee) files appeal, RESPONDENT (AO / Dept) can file CROSS-OBJECTION; (b) Cross-objection within 30 DAYS of receipt of appeal-notice; (c) Treats cross-objection as separate appeal -- can challenge findings adverse to respondent; (d) Important strategic tool for both parties. PRACTITIONER: when filing appeal, anticipate Department cross-objection; comprehensive defence prepared.

PRACTITIONER NOTES

(i) 60-DAY DIARY -- strict; condonation requires reasonable cause. (ii) FORM 36 PRECISION -- comprehensive grounds; statement of facts; documentary annexures. (iii) FEES CORRECT -- e-payment via portal; max INR 10,000. (iv) STAY APPLICATION -- separate stay-application before ITAT u/s 369 / 1961 s. 220(6); INR 500 fee. (v) CROSS-OBJECTION ANTICIPATION -- prepare defence; Department often files. (vi) NEW GROUNDS -- additional grounds permissible at ITAT subject to discretion (Rule 11). (vii) ADDITIONAL EVIDENCE -- limited; only on specific grounds (Rule 29). (viii) STAY OF DEMAND -- ITAT can grant stay typically up to 365 days subject to extension.

CROSS-REFERENCES

Section 361 -- ITAT constitution.
Section 363 -- ITAT orders.
Section 364 -- ITAT procedure.
Section 369 -- Stay of demand.
Section 365 -- HC appeal (subsequent).
Form 36 / 36A -- ITAT appeal forms.
Income-tax (Appellate Tribunal) Rules 1963.

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