Sections 365 to 368 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.
Sections 365 to 368 of the Income-tax Act, 2025 provide the appeals that lie above the Appellate Tribunal. Section 365 is the appeal to the High Court on a substantial question of law, section 366 says how the High Court hears it, and sections 367 and 368 deal with the Supreme Court. This article follows the text as per the Income-tax Act, 2025 (30 of 2025) as amended by the Finance Act, 2026.
An appeal lies to the High Court from every order passed in appeal by the Appellate Tribunal, if the High Court is satisfied that the case involves a substantial question of law. It must be filed within one hundred and twenty days of receipt of the order, by a memorandum of appeal that precisely states the question. The High Court formulates the question, and the appeal is heard on that question by a Bench of not less than two Judges. An appeal lies to the Supreme Court only where the High Court certifies the case as fit for appeal (section 367).
Where these sections sit
These sections are in part A of Chapter XVIII, groups 3 and 4. Before them come the Tribunal sections: see section 362 and our post on sections 361, 363 and 364. After them come sections 369 to 374, on which see the general provisions article. The Chapter is summarised in the Chapter XVIII guide. For the earlier Act's provisions see our appeal sections mapping note. Later amendments, rules and notifications should be checked.
If you are considering a High Court appeal, see our page on legal dispute resolution.
Section 365: appeal to the High Court
Sub-sections (1) and (2): who may appeal and when
- An appeal lies to the High Court from every order passed in appeal by the Appellate Tribunal, if the High Court is satisfied that the case involves a substantial question of law.
- The Principal Chief Commissioner or Chief Commissioner or the Principal Commissioner or Commissioner, or an assessee aggrieved by an order of the Tribunal, may file the appeal. It shall be:
- (a) filed within one hundred and twenty days from the date on which the order appealed against is received by the assessee or by the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner; and
- (b) in the form of a memorandum of appeal precisely stating the substantial question of law involved.
Sub-section (3): delay
The High Court may admit an appeal after the 120 days if it is satisfied that there was sufficient cause for not filing it within that period.
Sub-sections (4) to (6): the question of law
| Sub-section | Rule |
|---|---|
| (4) | Where the High Court is satisfied that a substantial question of law is involved, it shall formulate that question |
| (5) | The appeal is heard only on the question so formulated; the respondents are allowed, at the hearing, to argue that the case does not involve such question |
| (6) | Sub-section (5) does not take away or abridge the power of the court to hear, for reasons to be recorded, the appeal on any other substantial question of law not formulated by it, if satisfied that the case involves such question |
Sub-sections (7) to (10): decision and effect
- (7) The High Court decides the question of law so formulated and delivers a judgment containing the grounds of its decision; it may award such cost as it deems fit.
- (8) It may determine any issue which the Appellate Tribunal has not determined, or has wrongly determined by reason of a decision on the question of law in sub-section (1).
- (9) Save as otherwise provided in the Act, the provisions of the Code of Civil Procedure, 1908 (5 of 1908) relating to appeals to the High Court apply as far as may be. Check that Code where it matters.
- (10) Where the High Court delivers a judgment in an appeal under the section, effect is given to the order by the Assessing Officer on the basis of a certified copy of the judgment.
Section 366: Bench of not less than two Judges
When an appeal has been filed under section 365, it is heard by a bench of not less than two Judges of the High Court, and decided as per the opinion of such Judges or of the majority, if any. Where there is no majority, the Judges state the point of law on which they differ, and the case is then heard on that point only by one or more of the other Judges; the point is decided by the majority of the Judges who have heard the case, including those who first heard it.
Section 367: appeal to the Supreme Court
An appeal lies to the Supreme Court from any judgment of the High Court delivered on an appeal made to the High Court in respect of an order passed under section 363, in any case which the High Court certifies to be fit for appeal to the Supreme Court. The Act does not say what grounds the High Court should use for the certificate.
Section 368: hearing before the Supreme Court
- (1) The provisions of the Code of Civil Procedure, 1908 relating to appeals to the Supreme Court apply, so far as may be, to appeals under section 367 as they apply to appeals from decrees of a High Court.
- (2) The costs of the appeal are at the discretion of the Supreme Court.
- (3) Where the judgment of the High Court is varied or reversed in the appeal, effect is given to the order of the Supreme Court in the manner provided in section 365(10) for a judgment of the High Court.
Related provisions
Section 369 (tax payable irrespective of an appeal to the High Court or the Supreme Court) and section 374 (meaning of "High Court" for the Chapter) follow in the same Chapter; see the article linked above. Where an identical question of law is pending in an appeal under section 365 or section 367, sections 375 and 376 provide a procedure; see our post on avoiding repetitive appeals.
Worked example
Gopal Textiles (an invented name) receives an order of the Appellate Tribunal on 4 March. Under section 365(2)(a) it must file its appeal within one hundred and twenty days of receipt. Counting from the day after receipt, 27 days remain in March, then 30 in April, 31 in May and 30 in June, which is 118 days to 30 June; the 120th day is 2 July. (Check the counting with your adviser; this section does not spell out the counting rule.) The appeal is filed with a memorandum that precisely states the substantial question of law, for example whether a particular receipt is capital or revenue in nature, which the High Court would examine.
The High Court, satisfied that a substantial question of law is involved, formulates it (section 365(4)). A Bench of two Judges hears the appeal on that question (section 366(1)). If the two Judges are divided, they state the point of law and a third Judge hears that point only. After the judgment, the Assessing Officer gives effect to it on the basis of a certified copy (section 365(10)). If Gopal Textiles loses and the High Court certifies the case as fit for appeal, it may go to the Supreme Court under section 367.
Need help with a High Court appeal?
If an order of the Appellate Tribunal has gone against you or against the department and you need to frame a question of law or plan the timeline, our team can help. Please contact us through the page for legal dispute resolution.
Key takeaways
- A High Court appeal lies only where a substantial question of law is involved.
- The time limit is one hundred and twenty days from receipt of the Tribunal's order, extendable for sufficient cause.
- The High Court formulates the question and hears the appeal on that question, subject to section 365(6).
- A Bench of not less than two Judges hears the appeal.
- A Supreme Court appeal needs the High Court's certificate of fitness.
Read next
- Sections 361, 363 and 364: Appellate Tribunal
- Sections 369 to 374: tax payable despite appeal, costs and appeals by the department
- Sections 375 and 376: avoiding repetitive appeals
- Section 362: appeals to the Appellate Tribunal
Disclaimer: Based on the Income-tax Act, 2025 (30 of 2025) as amended by the Finance Act, 2026, as consulted on 2 October 2026. It explains the words of the Act only; the Income-tax Rules, 2026, notifications, circulars, later amendments and the way the tax authorities and courts apply these provisions should be checked. This article is general information, not legal advice; check the official text before acting.