Section 18 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 18 is the second appeal. It lets an assessee appeal to the Appellate Tribunal against an order of the Commissioner (Appeals), and lets the department do the same through the Assessing Officer. It fixes the time limits, provides for cross-objections, allows late appeals within a cap, and says how the Tribunal works. This article reads the section as the Act as enacted and published in the Gazette of India on 27 May 2015 prints it.
An assessee aggrieved by an order of the Commissioner (Appeals) under section 15, or by an order of the Principal Commissioner or the Commissioner under any provision of the Act, may appeal to the Appellate Tribunal. The appeal is due within sixty days from communication of the order, as enacted. The other side can file cross-objections within thirty days of notice. A late appeal can be admitted for sufficient cause if the delay is not more than one year.
Sub-section (1) and (2): who may appeal
Section 18(1) says any assessee aggrieved by an order passed by the Commissioner (Appeals) under section 15, or by an order passed by the Principal Commissioner or the Commissioner under any provision of the Act, may appeal to the Appellate Tribunal against such order. The Appellate Tribunal is the one constituted under section 252 of the Income-tax Act, as section 2(1) of this Act defines it.
Section 18(2) gives the department its route. The Principal Commissioner or the Commissioner may, if he objects to any order passed by the Commissioner (Appeals) under any provision of the Act, direct the Assessing Officer to appeal to the Appellate Tribunal against the order.
| Route | Who files | Against what |
|---|---|---|
| Section 18(1) | The assessee | An order of the Commissioner (Appeals) under section 15, or an order of the Principal Commissioner or Commissioner under any provision |
| Section 18(2) | The Assessing Officer, on direction of the Principal Commissioner or the Commissioner | An order of the Commissioner (Appeals) the senior officer objects to |
Sub-section (3): sixty days
Every appeal under sub-section (1) or (2) shall be filed within a period of sixty days from the date on which the order sought to be appealed against is communicated to the assessee or to the Principal Commissioner or the Commissioner, as the case may be. The period is as enacted. It runs from communication of the order, so the date on which the order reaches you is a fact to record.
For the first appeal that comes before this one, see our article on sections 15 to 17. If you have an order you wish to take further, our legal dispute resolution team can help you test the grounds and the dates.
Sub-section (4): cross-objections
Section 18(4) says the Assessing Officer or the assessee, as the case may be, on receipt of notice that an appeal against the order of the Commissioner (Appeals) has been preferred by the other party, may, "notwithstanding that he may not have appealed against such order or any part thereof", within thirty days of receipt of the notice, file a memorandum of cross-objections, verified in the prescribed manner, against any part of the order of the Commissioner (Appeals). The memorandum is disposed of by the Appellate Tribunal as if it were an appeal presented within the time in sub-section (3).
The useful point is that a party who did not appeal can still challenge the order, but only in response to the other side's appeal and only within thirty days of the notice, as enacted.
Sub-section (5): late appeals and cross-objections
The Appellate Tribunal may admit an appeal or permit the filing of a memorandum of cross-objections after the expiry of the period in sub-section (3) or (4), if:
- (a) it is satisfied that there was sufficient cause for not presenting it within that period; and
- (b) the delay in filing the appeal does not exceed a period of one year.
Both conditions are required. This mirrors the shape of section 15(4) for the first appeal, but the Act's words here are the ones to rely on.
Sub-section (6): form, verification and fee
An appeal to the Appellate Tribunal shall be filed in such form, and verified in such manner, and shall, except in the case of a departmental appeal under sub-section (2) or a memorandum of cross-objections under sub-section (4), be accompanied by a fee as may be prescribed.
The Rules of 2015, as notified on 2 July 2015, prescribe: an appeal under section 18(1) in Form 3; a memorandum of cross-objections under section 18(4) in Form 4; signature and verification, where the assessee files, by the person who signs the first appeal; and a fee of twenty five thousand rupees for an appeal under section 18(1), as notified in 2015. Our article on rules 4 to 8 and Forms 1 to 5 goes through them. Later amendment rules should be checked.
Sub-section (7): how the Tribunal works
Subject to the Act, in hearing and making an order on any appeal under the section, the Appellate Tribunal "shall exercise the same powers and follow the procedure as it exercises and follows in hearing and making an order on any appeal under the Income-tax Act". So the Tribunal's powers and procedure are borrowed from the income-tax side. For the parallel procedure, see our guide on the Income Tax Appellate Tribunal.
What happens next
An order of the Appellate Tribunal can be taken to the High Court on a substantial question of law under section 19. A fresh assessment that follows a Tribunal order setting aside or cancelling an assessment has the time limit in section 11(2); see section 11.
An example
The Commissioner (Appeals) confirms an assessment on Mohan Rao and the order is communicated to him on 1 June. He has sixty days from that date to appeal to the Appellate Tribunal on Form 3 with the prescribed fee. The department also files an appeal on the same order. Mohan, on receipt of the notice, files a memorandum of cross-objections in Form 4 within thirty days of the notice, even though he did not appeal himself. If he had missed the sixty days, the Tribunal could admit his appeal only if there was sufficient cause and the delay was not more than one year.
Need help with an Appellate Tribunal appeal?
An appeal to the Tribunal turns on its grounds, the record placed before it and the dates. Our legal dispute resolution team can help you prepare the appeal or the cross-objections and appear for you.
Key takeaways
- An assessee may appeal to the Appellate Tribunal against an order of the Commissioner (Appeals), or an order of the Principal Commissioner or the Commissioner under any provision of the Act.
- The department can appeal too, through the Assessing Officer, if the Principal Commissioner or the Commissioner directs.
- The appeal is due within sixty days from communication of the order, as enacted.
- Cross-objections can be filed within thirty days of the notice of the other party's appeal.
- A late appeal or cross-objection can be admitted for sufficient cause if the delay does not exceed one year.
- The Rules of 2015 prescribe Forms 3 and 4 and a fee of twenty five thousand rupees for an appeal, as notified in 2015.
- Later Finance Act amendments to section 18, and any amendment rules, must be checked before acting. The reference to the Income-tax Act, 1961 is as printed in 2015; check the corresponding provision of the current income-tax law.
Read next
- Sections 15-17: appeal to the Commissioner (Appeals)
- Sections 19-22: appeals to the High Court and the Supreme Court
- Rules 4 to 8 and Forms 1 to 5 of the Black Money Rules, 2015
- The Income Tax Appellate Tribunal: the parallel procedure under income-tax law
Disclaimer: Based on the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 as enacted and published in the Gazette of India on 27 May 2015, and on the Rules of 2015 as notified on 2 July 2015, as consulted on 2 October 2026. Later Finance Act amendments, amendment rules and the current income-tax law should be checked. This article is general information, not legal advice; check the official text before acting.