Section 360
Section 360: powers of the appellate authority in disposing of an appeal
Section 360 spells out the range of orders the Joint Commissioner (Appeals) or Commissioner (Appeals) can pass while disposing of an appeal - from confirming, reducing, enhancing or annulling an assessment, to setting aside a best-judgment assessment for a fresh assessment - while requiring that the appellant first be given a chance to be heard before any enhancement or reduction of refund.
This explanation is AI-assisted and pending review by our CA/CS team. It is general information, not professional advice - always cross-check against the bare law text above or talk to our tax team for guidance specific to your situation.
Powers in disposing of an appeal
In disposing of an appeal, the Commissioner (Appeals) or Joint Commissioner (Appeals) may:
- In an appeal against an assessment order - confirm, reduce, enhance or annul the assessment
- In an appeal against an assessment made under section 271 - set aside the assessment and refer the case back to the Assessing Officer for a fresh assessment
- In an appeal against an assessment for which proceedings before the Settlement Commission abated under section 245HA of the Income-tax Act, 1961 - after considering the material, inquiry results and evidence from the Settlement Commission proceedings and any other material on record, confirm, reduce, enhance or annul the assessment
- In an appeal against a penalty order - confirm or cancel the order, or vary it to enhance or reduce the penalty
- In any other case - pass such order as it thinks fit
Right to be heard before enhancement
The appellate authority cannot enhance an assessment or penalty, or reduce a refund, unless the appellant has been given a reasonable opportunity of showing cause against such enhancement or reduction.
Deciding matters not raised by the appellant
The appellate authority may consider and decide any matter arising from the proceedings in which the appealed order was passed, even if the appellant did not specifically raise that matter.
Frequently asked questions
Can the Commissioner (Appeals) increase my tax liability beyond what the Assessing Officer assessed?
Yes, the appellate authority can enhance the assessment or a penalty, but only after giving the appellant a reasonable opportunity to show cause against the enhancement, as required by Section 360(2).
Can the appellate authority decide an issue I never raised in my appeal?
Yes - Section 360(3) allows the Joint Commissioner (Appeals) or Commissioner (Appeals) to consider and decide any matter arising out of the proceedings, even if the appellant did not raise it.
What can happen to a best-judgment assessment on appeal?
For an assessment made under section 271, the Commissioner (Appeals) can set aside the assessment and send the case back to the Assessing Officer to make a fresh assessment.
Related sections
Want this applied to your actual filing, not just explained?
Get help with your income-tax appealLast updated 9 September 2026