Section 368: hearing before the Supreme Court

Introduction

Section 368 explains how an appeal under section 367 is heard in the Supreme Court: the relevant civil appeal procedure applies so far as possible, costs are for that Court to decide, and a changed High Court judgment is implemented through section 365(10).

Key takeaways

Applicable procedure and costs

The provisions of the Code of Civil Procedure, 1908 relating to appeals to the Supreme Court apply, so far as possible, to appeals under section 367, in the same way as they apply to appeals from decrees of a High Court.

The costs of the appeal are at the discretion of the Supreme Court.

Giving effect to the Supreme Court's order

Where the High Court's judgment is varied or reversed on appeal, effect is given to the Supreme Court's order in the manner provided in section 365(10) for a High Court judgment.

Practical scope

Distinguish the right of appeal from the procedure for hearing it. Section 367 supplies the statutory route; Section 368 applies the relevant Civil Procedure Code appeal provisions so far as may be, addresses costs and explains implementation of a varied or reversed judgment.

Implementation requires reading the Supreme Court’s operative order carefully. Through Section 365(10), effect is given by the Assessing Officer on the basis of a certified copy. The resulting computation should follow the actual relief and directions.

Limits and separate requirements

The procedural cross-reference is qualified by “so far as may be”. It should not be described as an instruction that every ordinary civil-suit rule applies without adaptation to a tax appeal.

A favourable legal conclusion does not necessarily specify a ready-made refund figure or a fixed costs award. Read whether the order varies, reverses or remits an issue, and examine its express treatment of costs.

Step-by-step review

1. Identify the appeal under Section 367 and the applicable Supreme Court procedure.

2. Keep the judgment and obtain the certified copy needed for the consequential process.

3. Map the operative directions to the assessment issues and prepare a computation showing the effect requested.

4. Track the Assessing Officer’s implementation and treat any costs direction as a separate part of the court order.

Hypothetical example

Hypothetical illustration: the Supreme Court reverses the High Court on one disputed tax issue while leaving the remaining assessment questions unchanged. The taxpayer should seek implementation of that particular direction using the certified judgment, rather than assume the entire assessment or every amount paid has been cancelled.

Records to prepare

The appeal record and final operative judgment.

Certified copy and proof of submission for giving effect.

Issue-wise consequential computation and any express costs direction.

Official amended Act source

• Income-tax Act, 2025 as amended by Finance Act, 2026: Section 368 and related provisions

Step-by-step flow for a hearing before the Supreme Court under Section 368

1. 1

   Is the appeal one under section 367?

   • No: Section 368 does not apply.
   • Yes: Go to the next step.
2. 2

   Apply the civil procedure

   Under Section 368(1), the Code of Civil Procedure, 1908 provisions on appeals to the Supreme Court apply, so far as may be, as they apply to appeals from decrees of a High Court.

3. 3

   Costs

   The costs of the appeal are at the discretion of the Supreme Court (Section 368(2)).

4. 4

   Is the High Court's judgment varied or reversed?

   • Yes: Effect is given to the Supreme Court's order in the manner in section 365(10), that is, by the Assessing Officer on the basis of a certified copy (Section 368(3)).
   • No: The High Court's judgment, already given effect under section 365(10), stands.

Practical checklist

Glossary

Giving effect

Implementing the judgment’s operative directions in the tax assessment or related computation.

Certified copy

The copy on which the Section 365(10) implementation mechanism is based.

Frequently asked questions