Section 369: tax to be paid irrespective of appeal

Introduction

The section connects the assessed tax amount with the appeal process. Filing an appeal to either named court does not, by itself, change what is payable under the assessment.

Key takeaways

The rule

Irrespective of the fact that an appeal has been preferred to the High Court or the Supreme Court, tax remains payable as per the assessment made in the case.

Scope and business relevance

The section specifically addresses an appeal preferred to the High Court or Supreme Court. The tax remains payable as per the assessment despite the fact that such an appeal has been filed.

Maintain two separate workstreams: the merits and progress of the appeal, and the assessed demand and payment position. Evidence that a court appeal has been registered is not, by itself, evidence that payment has been suspended.

Limits and related provisions

Section 369 does not itself grant a stay, prescribe a deposit percentage or state a fresh payment deadline. Any reliance on an operative court order must be based on its actual terms, scope and conditions.

An application asking for interim relief is different from an order granting relief. The assessment, subsequent relevant orders and payment records should be read together; do not treat an appeal acknowledgement as a substitute for an order affecting payment or recovery.

Step-by-step review

1. Identify the assessment and the tax payable under it.

2. Record which named court is hearing the appeal and keep the appeal documents separate from the payment ledger.

3. Check whether an operative order affects the payment or recovery position, and read its conditions rather than assuming relief.

4. Reconcile amounts paid and any remaining demand while tracking changes arising from subsequent orders.

Hypothetical practical example

Hypothetical illustration: a business files a High Court appeal and receives a filing acknowledgement. Its accounts team cannot mark the assessed tax as suspended solely because the appeal is pending. If a separate interim order is later made, the team must assess its actual coverage and conditions before changing the payment or recovery status.

Documents and record checklist

Assessment and demand records with payment and adjustment evidence.

Appeal filing acknowledgement and subsequent court orders.

Any operative interim order, its conditions and a record of compliance.

Official Act source

• Income-tax Act, 2025 as amended by Finance Act, 2026: Section 369

Step-by-step flow for applying Section 369

1. 1

   Has an assessment been made in the case?

   Section 369 links the tax payable to the assessment made in the case.

2. 2

   Has an appeal been preferred to the High Court or the Supreme Court?

   Section 369 deals only with appeals to these two courts.

   • No: Section 369 is not engaged; check the provisions that apply at the earlier appeal stages.
   • Yes: Go to the next step.
3. 3

   Tax remains payable as per the assessment

   Irrespective of the appeal, tax is payable as per the assessment made. Filing the appeal does not by itself suspend the liability.

4. 4

   What if the appeal succeeds?

   If the High Court or Supreme Court decides in the assessee's favour, effect is given to the judgment by the Assessing Officer on the basis of a certified copy (sections 365(10) and 368(3)).

Practical checklist

Glossary

Assessment

The determination with reference to which Section 369 says tax remains payable.

Interim relief

Relief granted during proceedings, whose effect depends on the actual court order.

Frequently asked questions