Chapter XVIII - Appeals, Revisions and Alternate Dispute Resolutions
Section 359
Section 359: procedure for hearing an appeal
Section 359 governs how the Joint Commissioner (Appeals) or Commissioner (Appeals) conducts an appeal hearing under Chapter XVIII - from fixing a hearing date and giving both sides a right to be heard, to passing a written, reasoned order and communicating it, with a target of disposing of the appeal within one year where possible.
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Need advice on Section 359?
This article is for general information. Refer to the Income-tax Act, 2025 as amended by the Finance Act, 2026 and the Taxation and Other Laws (Amendment) Act, 2026 for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
(1) The Joint Commissioner (Appeals) or the Commissioner (Appeals) shall fix a day and place for the hearing of the appeal, and shall give notice of the same to the appellant and to the Assessing Officer against whose order the appeal is preferred.
(2) The following shall have the right to be heard at the hearing of the appeal:—
(a) the appellant, either in person or by an authorised representative;
(b) the Assessing Officer, either in person or by a representative.
(3) The Joint Commissioner (Appeals) or the Commissioner (Appeals) may––
(a) adjourn the hearing of the appeal; or
(b) make such further inquiry as he thinks fit, before disposing of any appeal, or may direct the Assessing Officer to make further inquiry and report the result of the same; or
(c) allow the appellant to go into any ground of appeal not specified in the grounds of appeal, if he is satisfied that the omission of that ground from the form of appeal was not wilful or unreasonable.
(4) The order of the Joint Commissioner (Appeals) or the Commissioner (Appeals) disposing of the appeal shall be in writing and shall state the points for determination, the decision thereon and the reasons for the decision.
(5) The Joint Commissioner (Appeals) or the Commissioner (Appeals), where it is possible, may hear and decide such appeal within one year from the end of the financial year in which such appeal is filed or transferred to him under section 356.
(6) On the disposal of the appeal, the Joint Commissioner (Appeals) or the Commissioner (Appeals) shall communicate the order passed by him to the assessee and to the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner.
Introduction
Section 359 governs notice of hearing, the parties’ right to appear, further inquiry and the form of the first appellate order.
The appellate authority may allow an additional appeal ground where the earlier omission was not wilful or unreasonable.
Key takeaways
Both sides receive hearing rights
The appellant and the Assessing Officer are notified of the hearing and may be heard personally or through representatives.
Additional inquiry and grounds are possible
The appellate authority may adjourn, conduct or direct further inquiry, and permit an omitted appeal ground where its omission was not wilful or unreasonable.
The decision must give reasons
The written order states the points for determination, the decision on them and the reasons, and is communicated after disposal.
One year is qualified
The Act says the appeal may be heard and decided within one year from the end of the filing or transfer financial year where it is possible, not as an unconditional deadline.
Notice and right to be heard
The Joint Commissioner (Appeals) or Commissioner (Appeals) must fix a day and place for the hearing and give notice of it to the appellant and to the Assessing Officer whose order is being appealed.
The appellant (in person or through an authorised representative) and the Assessing Officer (in person or through a representative) both have the right to be heard at the hearing.
Powers during the hearing
The appellate authority may:
- Adjourn the hearing of the appeal
- Make further inquiry itself, or direct the Assessing Officer to make further inquiry and report the result, before disposing of the appeal
- Allow the appellant to raise a ground of appeal not specified in the original grounds, if satisfied the omission was not wilful or unreasonable
The order, timeline and communication
The order disposing of the appeal must be in writing, stating the points for determination, the decision on each, and the reasons for the decision.
Where possible, the appeal should be heard and decided within one year from the end of the financial year in which it was filed, or in which it was transferred under section 356.
On disposal, the order must be communicated to the assessee and to the Principal Chief Commissioner, Chief Commissioner, Principal Commissioner or Commissioner.
Step-by-step flow for the appeal hearing under Section 359
- 1
Notice of hearing
Under Section 359(1), the Joint Commissioner (Appeals) or Commissioner (Appeals) fixes a day and place for the hearing and gives notice to the appellant and to the Assessing Officer whose order is under appeal.
- 2
Who may be heard?
Section 359(2) gives a right to be heard to the appellant, in person or by an authorised representative, and to the Assessing Officer, in person or by a representative.
- 3
Does the appellant want to raise a ground not in the form of appeal?
- Yes: The appellate authority may allow it if satisfied that leaving it out was not wilful or unreasonable (Section 359(3)(c)). Go to the next step.
- No: Go to the next step.
- 4
Adjournment or further inquiry
Under Section 359(3)(a) and (b), the hearing may be adjourned, and the authority may make further inquiry itself or direct the Assessing Officer to inquire and report.
- 5
Written order and communication
The order must be in writing and state the points for determination, the decision and the reasons (Section 359(4)). It is communicated to the assessee and to the Principal Chief Commissioner, Chief Commissioner, Principal Commissioner or Commissioner (Section 359(6)). Where possible, the appeal may be decided within one year from the end of the financial year in which it was filed or transferred under section 356 (Section 359(5)).
Practical checklist
Do
- Prepare the grounds of appeal and supporting record for the notified hearing.
- Request permission to raise an omitted ground with an explanation for the omission.
- Check that the final written order states the issues, decision and reasons.
Avoid
- Assume a hearing adjournment or extra ground is automatic.
Illustrative example
Worked example: an additional ground at the hearing
Hypothetical facts (illustration only, not a real taxpayer): A company appeals against an assessment. When preparing for the hearing, its representative finds that a ground on the computation of a deduction was left out of the form of appeal because of an oversight in compiling the papers. The appeal was filed in the financial year 2026-27. All facts are assumed.
Notice
The Commissioner (Appeals) fixes the hearing date and place and sends notice to the company and to the Assessing Officer.
Additional ground
The company asks to raise the omitted ground and explains how it came to be left out. The Commissioner (Appeals) may allow it if satisfied the omission was not wilful or unreasonable.
Further inquiry
To check the facts behind the new ground, the Commissioner (Appeals) directs the Assessing Officer to make an inquiry and report.
Decision
After the report, the order is issued in writing with the points for determination, the decision and the reasons. Where possible, the appeal may be decided by 31 March 2028, one year from the end of financial year 2026-27.
Outcome
- The omitted ground can be heard if the omission was not wilful or unreasonable.
- The one-year period in Section 359(5) applies "where it is possible"; the section does not state a consequence if it is not met.
Frequently asked questions
Does the Assessing Officer get a hearing too, not just the taxpayer?
Yes - Section 359(2) gives both the appellant (in person or through a representative) and the Assessing Officer (in person or through a representative) the right to be heard at the appeal hearing.
Can I raise a new ground of appeal that I didn't originally mention?
The appellate authority may allow this if it is satisfied that leaving that ground out of the original form of appeal was not wilful or unreasonable.
How long should it take to decide my appeal?
Section 359(5) sets a target of one year from the end of the financial year in which the appeal was filed (or transferred under section 356), where it is possible to meet that timeline.
Need help applying this provision to your situation?
Get help preparing for your income-tax appeal hearingLast updated 9 October 2026