Section 363: orders passed by the Appellate Tribunal

Passing and rectifying orders

The Appellate Tribunal may, after giving both parties an opportunity of being heard, pass such orders on the appeal as it thinks fit.

It may amend its own order to rectify a mistake apparent from the record, within six months from the end of the month in which the order was passed, if the mistake is brought to its notice by the assessee or the Assessing Officer.

An amendment that enhances an assessment, reduces a refund, or otherwise increases the assessee's liability cannot be made unless the assessee has been given a reasonable opportunity of being heard.

An application by the assessee for such rectification must be accompanied by a fee of ₹50.

Timeline for deciding appeals

Where possible, the Appellate Tribunal should hear and decide an appeal within four years from the end of the financial year in which the appeal was filed under section 362(1) or (2).

Stay of demand

The Appellate Tribunal may, after considering the merits of the assessee's application, grant a stay in proceedings relating to an appeal filed under section 362(1), for a period not exceeding one hundred and eighty days from the date of the stay order, on condition that the assessee deposits not less than 20% of the tax, interest, fee, penalty or other sum payable, or furnishes security of an equal amount.

The Tribunal must dispose of the appeal within that stay period.

An extension of stay is not granted unless the assessee applies, has complied with the 20% deposit/security condition, and the Tribunal is satisfied that the delay in disposing of the appeal is not attributable to the assessee - and even then, the total of the original stay and all extensions cannot exceed three hundred and sixty-five days.

The stay order stands vacated if the appeal is not disposed of within the allowed period, even if the delay is not the assessee's fault.

Costs, communication of the order, and finality

The cost of an appeal to the Appellate Tribunal is at the Tribunal's discretion.

The Appellate Tribunal must send a copy of any order under this section to the assessee, and a copy is also sent electronically to the jurisdictional Principal Commissioner or Commissioner on the designated portal, with the Act's time limits for any appeal, reference or revision applying accordingly.

Save as provided in section 365, orders passed by the Appellate Tribunal on appeal are final.

Frequently asked questions