Procedure where an identical question of law is pending before High Courts or Supreme Court
[Section-376 as per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]
Section 376(1) of Income Tax Act 2025
376(1) Irrespective of anything contained in this Act, where the collegium is of the opinion that—
- 376(1)(a) any question of law arising in the case of an assessee for any tax year (such case being herein referred to as the relevant case) is identical with a question of law arising,—
- (i) in his case for any other tax year; or
- (ii) in the case of any other assessee for any tax year; and
- 376(1)(b) such question of law is pending before the jurisdictional High Court under section 365 or the Supreme Court in an appeal under section 367 or in a Special Leave Petition under article 136 of the Constitution, against the order of the Appellate Tribunal or the jurisdictional High Court, which is in favour of such assessee (such case being herein referred to as the other case),
the collegium may, decide and inform the Principal Commissioner or Commissioner not to file any appeal, at this stage, to the Appellate Tribunal under section 362(2) or to the jurisdictional High Court under section 365(2) in the relevant case against the order of the Joint Commissioner (Appeals) or the Commissioner (Appeals) or the Appellate Tribunal.
Section 376(2) of Income Tax Act 2025
376(2) Irrespective of anything contained in section 362(3) or section 365(2)(a), the Principal Commissioner or the Commissioner shall, on receipt of a communication from the collegium under sub-section (1), direct the Assessing Officer to make an application to the Appellate Tribunal or the jurisdictional High Court, in such form as prescribed, stating that an appeal on the question of law arising in the relevant case may be filed when the decision on such question of law becomes final in the other case.
Section 376(3) of Income Tax Act 2025
376(3) The application referred to in sub-section (2) shall be filed within one hundred and twenty days from the date of receipt of the order of the Joint Commissioner (Appeals) or the Commissioner (Appeals) or of the Appellate Tribunal.
Section 376(4) of Income Tax Act 2025
376(4) The Principal Commissioner or Commissioner shall direct the Assessing Officer—
- (a) to make an application under sub-section (2), if an acceptance is received from the assessee to the effect that the question of law in the other case is identical to that arising in the relevant case; and
- (b) to proceed as per section 362(2) or section 365(2)(b), if no such acceptance is received irrespective of anything in section 362(3) or section 365(2)(a).
Section 376(5) of Income Tax Act 2025
376(5) If the order of the Joint Commissioner (Appeals) or the Commissioner (Appeals) or the order of the Appellate Tribunal referred to in sub-section(1), is not in conformity with the final decision on the question of law in the other case, as and when such order is received, the Principal Commissioner or Commissioner may direct the Assessing Officer to appeal to the Appellate Tribunal or the jurisdictional High Court, against such order, and save as otherwise provided in this section, all other provisions of Parts A.2 and A.3 of this Chapter shall apply accordingly.
Section 376(6) of Income Tax Act 2025
376(6) Every appeal under sub-section (5) shall be filed within sixty days to the Appellate Tribunal or one hundred and twenty days to the High Court, from the date on which the order of the jurisdictional High Court or the Supreme Court in the other case, is communicated to the Principal Commissioner or the Commissioner (having jurisdiction over the relevant case), as per the procedure specified by the Board.
Section 376(7) of Income Tax Act 2025
376(7) In this section, “collegium” means a collegium comprising two or more Chief Commissioners or Principal Commissioners or Commissioners, as specified by the Board.
FAQs on Section 376 of Income Tax Act 2025
What is the purpose of Section 376 of the Income Tax Act, 2025?
Section 376 establishes a procedural mechanism where a question of law in a taxpayer’s case is identical to one already pending before the jurisdictional High Court or Supreme Court in another case. It allows deferral of appeal filing until a final decision is made in the other case.
What is meant by “relevant case” under Section 376?
A “relevant case” refers to the case of an assessee in which the question of law arises and which may be held pending appeal until the issue is resolved in another case.
What does “other case” signify under Section 376?
An “other case” refers to a case where an identical question of law is already under consideration by the jurisdictional High Court or the Supreme Court and where the decision is in favor of the assessee.
Who decides whether the question of law in two cases is identical?
A collegium comprising two or more Chief Commissioners, Principal Commissioners, or Commissioners, as specified by the Board, decides if the question of law is identical.
What action can the collegium take under Section 376(1)?
If the collegium is of the opinion that the question of law is identical and pending before a higher court, it may inform the Principal Commissioner or Commissioner not to file an appeal at that stage.
Can an appeal be deferred even if the order is appealable?
Yes, despite the availability of appeal under section 362(2) or 365(2), the collegium may instruct not to appeal immediately if the conditions under Section 376(1) are satisfied.
What must the Principal Commissioner or Commissioner do upon receiving communication from the collegium?
They must instruct the Assessing Officer to file an application with the Appellate Tribunal or jurisdictional High Court stating that appeal will be filed after the final decision in the other case.
Is there a time limit for filing the application mentioned in Section 376(2)?
Yes, the application must be filed within 120 days from the receipt of the order of the Joint Commissioner (Appeals), Commissioner (Appeals), or Appellate Tribunal.
What if the assessee does not agree that the question of law is identical?
If the assessee does not provide acceptance, the Assessing Officer must proceed with filing the appeal under section 362(2) or 365(2)(b), disregarding the deferment procedure.
What happens if the final decision in the other case is contrary to the earlier favorable decision?
If the final judgment is not in conformity with the earlier order in the relevant case, the Principal Commissioner or Commissioner may instruct the Assessing Officer to appeal.
Within what time must such an appeal under Section 376(5) be filed?
The appeal must be filed within 60 days to the Appellate Tribunal or within 120 days to the High Court from the date the final decision in the other case is communicated.
What is the role of the Board in the process outlined in Section 376?
The Board specifies the composition of the collegium and prescribes the procedure for filing applications and appeals.
Does Section 376 override other provisions of the Act?
Yes, it applies notwithstanding anything to the contrary in other provisions, including sections 362 and 365.
What happens if there is a delay in communicating the final judgment in the other case?
The limitation period for filing an appeal under Section 376(6) starts from the date the decision is communicated to the Principal Commissioner or Commissioner.
Is the assessee’s acceptance necessary for applying the deferment mechanism under Section 376?
Yes, the deferment procedure under Section 376(2) requires the assessee’s acceptance that the question of law is identical to that in the other case.
Refresh Page