Chapter XVIII - Appeals, Revisions and Alternate Dispute Resolutions
Section 362
Section 362: appeals to the Appellate Tribunal
Section 362 sets out who can appeal to the Appellate Tribunal and against which orders - covering orders of the Commissioner (Appeals)/Joint Commissioner (Appeals), certain revision and penalty orders of senior income-tax authorities, and orders passed under Dispute Resolution Panel directions. It also fixes the filing window, cross-objection procedure, and the appeal fee scale.
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Need advice on Section 362?
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) 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-clause (i) and (ii); (c) an order passed by a Principal Chief Commissioner or Chief Commissioner 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 communicated 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-objections, 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 to1% 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 memorandum of cross objections referred to in sub-section (4).
(8) An application for stay of demand shall be accompanied by a fee of ₹ 500.
Introduction
Section 362 identifies appealable orders, who may bring an appeal to the Appellate Tribunal, and the filing and cross-objection windows.
The two-month appeal clock is measured from the end of the month in which the order is communicated. A cross-objection has its own thirty-day period from receipt of notice of the other party’s appeal.
Key takeaways
Order must be appealable
First match the challenged order and issuing authority to the specific list in section 362(1).
Two-month appeal period
Count from the end of the month of communication, not simply the date printed on the order.
Cross-objection route
The other party may file a cross-objection within thirty days of receiving notice of the appeal, subject to the section’s conditions.
Fees differ
The appeal fee depends on the statutory category; departmental appeals and cross-objections are fee-free, while a stay application has its own fee.
Orders that can be appealed to the Appellate Tribunal
An aggrieved assessee may appeal to the Appellate Tribunal against:
- An order passed by a Commissioner (Appeals) or Joint Commissioner (Appeals) under this Act
- An order passed by a Principal Commissioner or Commissioner under section 332(7), (8) or (9), or section 351(2)(ii), or section 354(3)
- An order passed by a Principal Commissioner or Commissioner under section 377, 439 or 465, or an order under section 287 amending such an order
- An order passed by a Principal Chief Commissioner, Chief Commissioner, Principal Director General, Director General, Principal Director or Director under section 377 or 465, or an order under section 287 amending such an order
- An order passed by an Assessing Officer under section 270(10) or 279 pursuant to Dispute Resolution Panel directions, or an order under section 287 in respect of it
- An order passed by an Assessing Officer under section 270(10) or 279 with the approval of the Principal Commissioner or Commissioner under section 274(12), or an order under section 287/288 in respect of it
- An order passed by an Assessing Officer under section 234(4)
Departmental appeals and cross-objections
The Principal Commissioner or Commissioner may, if they object to an order passed by the Joint Commissioner (Appeals) or Commissioner (Appeals), direct the Assessing Officer to appeal to the Appellate Tribunal.
Every appeal must be filed within two months from the end of the month in which the order appealed against is communicated to the assessee, or to the Principal Commissioner or Commissioner.
A party who receives notice that the other side has appealed may, within thirty days of receiving that notice, file a memorandum of cross-objections against any part of the order (in the prescribed form and manner), even if they had not themselves appealed - this is disposed of as if it were an appeal filed within time.
The Appellate Tribunal may admit a late appeal or cross-objection if satisfied there was sufficient cause for the delay.
Appeal fees
An appeal to the Appellate Tribunal must be in the prescribed form and manner, and accompanied by a fee as follows:
| Total income as computed by the Assessing Officer | Appeal fee |
|---|---|
| ₹1,00,000 or less | ₹500 |
| More than ₹1,00,000 but not more than ₹2,00,000 | ₹1,500 |
| More than ₹2,00,000 | 1% of the assessed income, subject to a maximum of ₹10,000 |
| Any other matter not covered above | ₹500 |
No fee for departmental appeals; stay application fee
No fee is payable for an appeal filed by the Department under sub-section (2), or for a memorandum of cross-objections under sub-section (4).
An application for stay of demand must be accompanied by a fee of ₹500.
Step-by-step flow for an appeal to the Appellate Tribunal under Section 362
- 1
Is the order one listed in Section 362(1), or is the Department appealing under Section 362(2)?
Section 362(1) covers orders of the Commissioner (Appeals) or Joint Commissioner (Appeals), specified orders of a Principal Commissioner or Commissioner and of higher authorities, Assessing Officer orders under sections 270(10) or 279 made on Dispute Resolution Panel directions or with approval under section 274(12), and orders under section 234(4). Under Section 362(2), the Principal Commissioner or Commissioner may direct the Assessing Officer to appeal against an order of the Joint Commissioner (Appeals) or Commissioner (Appeals).
- Neither: No appeal lies to the Tribunal under Section 362.
- Yes: Go to the next step.
- 2
File within two months
Under Section 362(3), the appeal must be filed within two months from the end of the month in which the order is communicated to the assessee or to the Principal Commissioner or Commissioner. A late appeal may be admitted if the Tribunal is satisfied there was sufficient cause (Section 362(5)).
- 3
Work out the fee
Under Section 362(6), the fee depends on the total income computed by the Assessing Officer: ₹500 if ₹1,00,000 or less; ₹1,500 if more than ₹1,00,000 but not more than ₹2,00,000; 1% of the assessed income, subject to a maximum of ₹10,000, if more than ₹2,00,000; and ₹500 for any other matter. No fee is payable for a Department appeal under Section 362(2) or for cross-objections (Section 362(7)). A stay application carries a fee of ₹500 (Section 362(8)).
- 4
Has the other side appealed?
- Yes: Within thirty days of receiving notice of that appeal, a memorandum of cross-objections may be filed against any part of the order, even if no appeal was filed. It is disposed of as if it were an appeal filed in time (Section 362(4)). Go to the next step.
- No: Go to the next step.
- 5
Form and verification
The appeal and any cross-objections must be in the form and verified in the manner prescribed (Section 362(4) and (6)). The section does not itself set out the form.
Practical checklist
Do
- Keep the order and evidence of its communication date.
- Identify the exact clause making the order appealable before filing.
- Calculate appeal and cross-objection deadlines separately and check the correct fee.
Avoid
- Do not assume every tax order is appealable to the Tribunal under this section.
Illustrative example
Worked example: Tribunal fee and filing period
Hypothetical facts (illustration only, not a real taxpayer): The Commissioner (Appeals) passes an order partly against Mr. Menon. It is communicated to him on 12 August 2027. The total income computed by the Assessing Officer in the case is ₹6,40,000. All figures and dates are assumed.
Appealable order
An order of the Commissioner (Appeals) is covered by Section 362(1)(a).
Time limit
The month of communication ends on 31 August 2027. Two months from then is 31 October 2027, the last date under Section 362(3).
Fee
Total income is more than ₹2,00,000, so the fee is 1% of the assessed income: 1% × ₹6,40,000 = ₹6,400. This is below the ₹10,000 maximum, so ₹6,400 is payable.
Comparison
Had the computed income been ₹15,00,000, 1% would be ₹15,000, and the fee would be capped at ₹10,000.
Department's cross-objections
If the Department also appeals and Mr. Menon receives notice of it, he may file cross-objections within thirty days, without fee.
Outcome
- Mr. Menon must file by 31 October 2027 with a fee of ₹6,400.
- A stay application, if made, needs a separate fee of ₹500.
Glossary
- Cross-objection
- A response filed by a party after another party has appealed to the Appellate Tribunal, under the section’s stated procedure.
- Stay application
- An application asking the Tribunal to pause recovery of a demand during the appeal, subject to the applicable fee.
Frequently asked questions
How long do I have to file an appeal to the Appellate Tribunal?
Two months from the end of the month in which the order being appealed against is communicated to the assessee, or to the Principal Commissioner or Commissioner, as set out in Section 362(3).
What is the appeal fee to the Appellate Tribunal if my assessed income is above ₹2,00,000?
1% of the assessed income, subject to a maximum of ₹10,000, under Section 362(6)(c).
Do I have to pay a fee for a cross-objection?
No - Section 362(7) exempts a memorandum of cross-objections filed under sub-section (4) from any fee.
What is the fee for a stay application before the Appellate Tribunal?
₹500, as fixed by Section 362(8).
Need help applying this provision to your situation?
Get help with your Appellate Tribunal appealLast updated 10 October 2026