Section 376 — HC SC Continuation | ITA 2025

Section 376 — - CONTINUATION OF HC / SC MATTERS

Section 376 is the substantive equivalent of 1961 s. 269A -- the provision dealing with continuation of hc / sc matters within the appellate / revisions / alternate dispute resolution framework under Chapter XVIII. Critical procedural / definitional anchor for assessees navigating the multi-tier dispute resolution architecture. The 2025 Act preserves substantive 1961 framework with FA 2021 ADR enhancements (DRC + Board for Advance Rulings replacing erstwhile Authority for Advance Rulings).

Statutory text — Income-tax Act, 2025

Marginal note -- Continuation of HC / SC matters

(1) Irrespective of anything contained in this Act, where the collegium is of the opinion that—

(a) any question of law arising in the case of an assessee for any tax year (such case being herein referred to as the relevant case) is identical with a question of law arising,—

(i) in his case for any other tax year; or

(ii) in the case of any other assessee for any tax year; and

(b) such question of law is pending before the jurisdictional High Court in an appeal under section 260A of Income-tax Act, 1961 (43 of 1961) or section 365 of this Act or the Supreme Court in an appeal under section 261 of the Income-tax Act, 1961 or section 367 of this Act or in a refer- ence under section 256 of Income-tax Act, 1961 before the Jurisdictional High Court or in a reference before the Supreme Court under section 261 of Income-tax Act, 1961 or in a Special Leave Petition under article 136 of the Constitution, against the order of the Appellate Tribunal or the jurisdictional High Court, which is in favour of such assessee (such case being herein referred to as the other case), the collegium may, decide and inform the Principal Commissioner or Commissioner not to file any appeal, at this stage, to the Appellate Tribunal under section 362(2) or to the jurisdictional High Court under section 365(2) in the relevant case against the order of the Joint Commissioner (Appeals) or the Commissioner (Appeals) or the Appellate Tribunal, as the case may be.

(2) Irrespective of anything contained in section 362(3) or section 365(2)(a), the Principal Commissioner or the Commissioner shall, on receipt of a communication from the collegium under sub-section (1), direct the Assessing Officer to make an application to the Appellate Tribunal or the jurisdictional High Court, in such form as may be prescribed, stating that an appeal on the question of law arising in the relevant case may be filed when the decision on such question of law becomes final in the other case.

(3) The application referred to in sub-section (2) shall be filed within one hundred and twenty days from the date of receipt of the order of the Joint Commissioner (Appeals) or the Commissioner (Appeals) or of the Appellate Tribunal.

(4) The Principal Commissioner or Commissioner shall direct the Assessing Officer—

(a) to make an application under sub-section (2), if an acceptance is received from the assessee to the effect that the question of law in the other case is identical to that arising in the relevant case; and

(b) to proceed as per section 362(2)or section 365(2)(b), if no such acceptance is received irrespective of anything in section 362(3)or section 365(2)(a).

(5) If the order of the Joint Commissioner (Appeals) or the Commissioner (Appeals) or the order of the Appellate Tribunal referred to in sub-section (1), is not in confor- mity with the final decision on the question of law in the other case, as and when such order is received, the Principal Commissioner or Commissioner may direct the Assessing Officer to appeal to the Appellate Tribunal or the jurisdictional High Court, against such order, and save as otherwise provided in this section, all other provisions of Parts A.2 and A.3 of this Chapter shall apply accordingly.

(6) Every appeal under sub-section (5) shall be filed within a period of sixty days to the Appellate Tribunal or one hundred and twenty days to the High Court, from the date on which the order of the jurisdictional High Court or the Supreme Court in the other case, is communicated to the Principal Commissioner or the Commis- sioner (having jurisdiction over the relevant case), as per the procedure specified by the Board in this behalf.

(7) For the purposes of this section, the expression “collegium” means a collegium comprising two or more Chief Commissioners or Principal Commissioners or Com- missioners, as specified by the Board. C. —Revision by the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner Revision of orders prejudicial to revenue.

STATUTORY ARCHITECTURE: Continuation of HC / SC matters is integral to the appellate / revisions / ADR framework under Chapter XVIII. The provision establishes legal basis for continuation of hc / sc matters -- providing procedural mechanics / authority structure / appellate rights / time-frames. Practitioner: identify correct provision for fact pattern; preserve appellate / writ rights; ensure compliance with procedural requirements. POST-FA 2021: Settlement Commission abolished; replaced by DRC for small taxpayers and Board for Advance Rulings (BAR) for prospective certainty cases. Faceless framework integration post FA 2020-2022 has substantially digitised the entire dispute-resolution architecture. AAR (Authority for Advance Rulings) replaced by BAR -- focuses on cross-border / TP / NR matters.

PRACTITIONER NOTES

(i) Procedural compliance critical; failure can render appellate / revision rights forfeited. (ii) Time-windows generally strict; condonation requires reasonable cause. (iii) Faceless framework integration post FA 2020 -- digital communications dominant. (iv) BAR for advance rulings -- prospective certainty for cross-border / complex matters; alternative to facing AO scrutiny.

CROSS-REFERENCES

Section 356-360 -- First appellate framework.
Section 361-364 -- ITAT framework.
Section 365-368 -- HC / SC appeals.
Sections 377-378 -- Revisions.
Sections 379-389 -- ADR / DRC / BAR.

← All sections (537)Act 2025 hub

INCOME-TAX ACT, 2025	INCOME-TAX ACT, 1961
INCOME-TAX ACT, 2025 -- s. 376	INCOME-TAX ACT, 1961 -- s. 269A
Continuation of HC / SC matters	1961 s. 269A