Section 359 of the Income-tax Act, 2025 — Procedure in Appeal Before the First Appellate Authority (JCIT(A) / CIT(A))

In plain language

What Section 359 is about

Section 359 of the Income-tax Act, 2025 lays down the step-by-step procedure that the first appellate authority must follow once you have filed an income-tax appeal against an order of the Assessing Officer (AO). The "first appellate authority" means the Joint Commissioner (Appeals) — JCIT(A) or the Commissioner (Appeals) — CIT(A). This provision is the direct successor to Section 250 of the old Income-tax Act, 1961, and its content is materially unchanged. It applies from 1 April 2026.

In simple words: Section 357 tells you how to file the appeal (Form, fee, time limit), and Section 359 tells you how that appeal is heard and decided — the notice you must get, your right to be heard, when new grounds can be added, the time frame for a decision, and how the order reaches you.

Who it applies to

• Any assessee (individual, HUF, firm, LLP, company, trust) who has filed a first appeal against an appealable order such as an assessment, penalty, TDS demand, or rectification order.
• The Assessing Officer whose order is under challenge — the AO is also a party and has a right to be heard.
• Both the JCIT(A) and CIT(A) are bound by this procedure; the appeal is largely conducted in the faceless / e-appeal mode through the online portal.

The key steps under Section 359

• Fixing the hearing: The appellate authority must fix a day and place for the hearing and give notice of it to both the appellant and the AO whose order is appealed against.
• Right to be heard: The appellant (in person or through an authorised representative such as a CA or advocate) and the AO (in person or through a representative) both have the right to be heard.
• Adjournment and further inquiry: The authority may adjourn the hearing from time to time and may make such further inquiry as it thinks fit, or direct the AO to make further inquiry and report back.
• Additional grounds of appeal: You may argue a ground not set out in your original appeal memo — but only if the authority is satisfied the omission was not wilful or unreasonable.
• Written, reasoned order: The order disposing of the appeal must be in writing and must state the points for determination, the decision on each, and the reasons.
• Time limit for disposal: Where possible, the appeal should be heard and decided within one year from the end of the financial year in which the appeal is filed or transferred. This is a directory (best-effort) target, not a strict deadline that voids a late order.
• Communication of the order: The order must be communicated to the assessee and to the Principal Commissioner or Commissioner.

How it interacts with related sections

• Section 356 lists the orders you can appeal against; Section 357 governs the form (Form 35), the appeal fee, and the 30-day limitation. Section 359 kicks in only after a valid appeal exists.
• Section 360 gives the appellate authority its powers — to confirm, reduce, enhance or annul an assessment, and to enhance only after giving the assessee a reasonable opportunity (a natural extension of the "right to be heard" in Section 359).
• If you are unhappy with the Section 359 order, the next step is an appeal to the Income-tax Appellate Tribunal (ITAT) under the tribunal-appeal provisions of the 2025 Act.

Practical implications

• Natural justice is guaranteed — an appeal cannot be dismissed without a notice of hearing and a real opportunity to present your case. An order passed without hearing can be challenged.
• You can raise new legal grounds even mid-appeal (for example, a fresh legal argument or an overlooked exemption), provided the omission was bona fide.
• A speaking order is your right — a bald "appeal dismissed" without reasons is defective and appealable.
• The one-year target pushes faster disposal, but delay by the department does not by itself invalidate the eventual order.