Income Tax Bill 2025 Clause 374 redefines High Court jurisdictions for tax appeals, updating territorial boundaries post-2019 reorganization
Clause 374 of the Income Tax Bill, 2025 defines "High Court" for tax appeals, updating the definition from Section 269 of the Income-tax Act, 1961. The new clause reflects current territorial realities, including post-2019 reorganization of territories into Union Territories and merged territories. It designates specific High Courts for each State and Union Territory, such as the High Court of Punjab and Haryana for territory, High Court at Calcutta for territory, and High Court of Kerala for territory. The provision eliminates ambiguity by providing comprehensive, up-to-date jurisdictional references, replacing outdated nomenclature and removing references to reorganized territories, ensuring clarity for taxpayers and practitioners in determining appropriate appellate forums.

Income Tax Bill 2025 Clause 373 modernizes appeal limits while maintaining core protections against frivolous litigation
The Income Tax Bill 2025's Clause 373 and the current Income Tax Act 1961's Section 268A both regulate appeals filed by tax authorities. These provisions empower the Central Board of Direct Taxes to set monetary limits for filing appeals, preventing litigation in low-revenue cases. Key protections include: non-filing of appeals in one case doesn't preclude appeals in other cases involving the same taxpayer or different taxpayers; taxpayers cannot claim the tax authority acquiesced by not filing appeals; and appellate forums must consider the Board's instructions when hearing appeals. The 2025 Bill modernizes language by removing references to obsolete "application for reference" procedures and changing "assessment year" to "tax year," while maintaining core policy objectives of reducing frivolous litigation and ensuring administrative consistency.

Income Tax Bill 2025 Clause 372 maintains identical appeal limitation provisions from current Section 268
The Income Tax Bill 2025's Clause 372 maintains identical provisions to Section 268 of the Income-tax Act 1961, addressing limitation period computation for appeals and applications. Both provisions exclude the service date and time required to obtain order copies from statutory limitation periods when copies aren't provided at service. This ensures procedural fairness by preventing assessees from being disadvantaged by administrative delays in accessing order contents. The provision applies to all appeals and applications under the Act, reflecting legislative commitment to effective remedies. Minor language modernization occurs with "provided" replacing "furnished" and "required" replacing "requisite," but legal effect remains unchanged. The continuity demonstrates legislative satisfaction with existing procedural safeguards in tax litigation.

Income Tax Bill 2025 Clause 371 allows assessment amendments for members after collective entity appeals
Clause 371 of the Income Tax Bill 2025 addresses amendment of assessments for members of bodies of individuals or associations of persons following appellate proceedings. When appeals under sections 356, 357, or 362 result in changes to the collective entity's assessment or direct new assessments, the Joint Commissioner, Commissioner, or Appellate Tribunal must authorize the Assessing Officer to amend or make fresh assessments for affected members. This provision mirrors Section 267 of the Income Tax Act 1961 but updates appellate section references to reflect the new legislative structure. The mandatory authorization requirement ensures procedural safeguards while maintaining equity between collective and individual tax liabilities.

Income Tax Bill 2025 Clause 370 maintains existing framework for enforcing Supreme Court cost awards through High Courts
The Income Tax Bill 2025's Clause 370 establishes procedural mechanisms for executing Supreme Court cost awards in tax matters. The provision allows High Courts to receive petitions for executing Supreme Court cost orders and transmit them to subordinate courts for enforcement. This clause is identical to Section 266 of the Income-tax Act 1961, indicating legislative satisfaction with the existing framework. The provision ensures Supreme Court authority is maintained through effective local enforcement, prevents cost orders from becoming unenforceable, and provides successful litigants with clear recovery mechanisms. The unchanged language suggests the mechanism has operated effectively without significant litigation or interpretative difficulties in practice.

Income Tax Bill 2025 Clause 369 requires tax payment despite pending appeals unless courts order stay
The Income Tax Bill 2025's Clause 369 mandates tax payment according to assessment orders regardless of pending appeals before High Court or Supreme Court. This provision succeeds Section 265 of the Income-tax Act 1961, maintaining the principle that appeals do not automatically stay tax collection unless specifically ordered by courts. The updated clause omits references to "reference" proceedings, reflecting modern appellate procedures where references have been largely phased out. Both provisions balance taxpayer appeal rights with government revenue collection interests, requiring taxpayers to actively seek judicial stay if they wish to defer payment during appeals. The core obligation remains unchanged despite linguistic modernization.

Income Tax Bill 2025 Clause 532 enables government to create faceless technology-driven tax schemes without time limits
The Income Tax Bill 2025's Clause 532 empowers the Central Government to frame schemes for any purpose under the Act, aiming to eliminate taxpayer-authority interface through technology and optimize resources via functional specialization. Unlike Section 264B of the 1961 Act, which was limited to appellate orders with a sunset clause, Clause 532 has broader scope without time limitations. The provision allows modification of statutory provisions through notifications, subject to parliamentary oversight. It ensures continuity by permitting amendment of existing schemes from the 1961 Act, representing a permanent shift toward faceless, technology-driven tax administration focused on efficiency, transparency, and accountability.

Income Tax Bill 2025 Clause 532 grants unlimited government power to modify tax provisions through schemes
The Income Tax Bill 2025's Clause 532 grants the Central Government broad powers to frame schemes for any purpose under the Act, aiming to eliminate taxpayer-authority interface, optimize resources through technology, and enable functional specialization. Unlike Section 264A of the 1961 Act which was limited to faceless revision of specific orders with a sunset clause, Clause 532 provides unlimited scope and duration. The provision allows modification of statutory provisions by notification and includes parliamentary oversight requirements. While promising administrative efficiency and transparency, the broad delegation of power raises constitutional concerns about executive overreach and the balance between legislative and executive functions in tax administration.

Income Tax Bill 2025 Clause 378 allows senior authorities to revise subordinate orders within one year
The Income Tax Bill 2025's Clause 378 mirrors Section 264 of the Income-tax Act 1961, empowering senior tax authorities to revise subordinate orders that are not prejudicial to assessees. Both provisions allow revision within one year, either suo motu or on application, with similar exclusions where appeals are available. Key improvements in Clause 378 include a guaranteed minimum 60-day period for decisions after excluding time for rehearings or stays, updated nomenclature reflecting current administrative hierarchy, and modernized cross-references. The provision maintains essential taxpayer protections while introducing measured improvements for efficiency and clarity in tax administration.

Income Tax Bill 2025 Clause 377 replaces Section 263 maintaining revisionary powers for erroneous orders prejudicial to revenue
The Income Tax Bill 2025's Clause 377 replaces Section 263 of the Income-tax Act 1961, empowering Principal Commissioners and Commissioners to revise orders by Assessing Officers or Transfer Pricing Officers that are erroneous and prejudicial to revenue. The provision maintains core principles including procedural safeguards requiring opportunity of hearing, two-year limitation periods with specified exclusions, and deeming provisions defining erroneous orders. Changes are primarily structural, updating cross-references to align with the new legislative framework while preserving substantive scope and effect of revisionary powers.

Income Tax Bill 2025 Clause 368 sets Supreme Court appeal procedures mirroring existing tax law framework
The Income Tax Bill 2025's Clause 368 establishes procedural framework for Supreme Court appeals in tax matters, largely mirroring Section 262 of the Income-tax Act 1961. The provision incorporates Code of Civil Procedure rules for appeals, grants Supreme Court discretion over costs, and establishes mechanisms for implementing court orders. Key differences include updated section references and absence of a saving proviso that previously protected certain procedural provisions. The clause maintains established appellate structure while potentially altering interplay between appeals and reference procedures, requiring judicial or legislative clarification to address interpretational uncertainties.

Income Tax Bill 2025 Clause 367 streamlines Supreme Court appeals eliminating outdated reference system for tax matters
The Income Tax Bill 2025's Clause 367 modernizes Supreme Court appeals in tax matters by streamlining the process from the current Section 261 of the Income-tax Act 1961. The new provision eliminates the outdated reference system and focuses solely on direct appeals from High Court judgments concerning orders under section 363, subject to High Court certification. This change reduces procedural complexity while maintaining the gatekeeping mechanism that ensures only cases involving substantial questions of law reach the Supreme Court. The certification requirement prevents overburdening the apex court with routine matters, ensuring judicial resources focus on cases with significant legal or constitutional implications for broader tax jurisprudence.

Income Tax Bill 2025 Clause 366 requires High Court tax appeals heard by minimum two judges with majority decisions
The Income Tax Bill 2025's Clause 366 replicates Section 260B of the Income Tax Act 1961, requiring High Court appeals to be heard by at least two judges with decisions made by majority opinion. When judges disagree, they must identify the specific legal point of contention, which is then heard by additional judges for majority resolution. This provision ensures collective judicial decision-making in tax appeals, reducing arbitrary outcomes and maintaining consistency in legal interpretation. The legislative continuity demonstrates the effectiveness of the existing procedural framework while safeguarding both taxpayer and revenue interests through enhanced judicial scrutiny.

Income Tax Bill 2025 Clause 365 mirrors existing Section 260A for High Court appeals from Appellate Tribunal orders
The Income Tax Bill 2025's Clause 365 mirrors Section 260A of the Income Tax Act 1961, governing High Court appeals from Appellate Tribunal orders. Both provisions restrict appeals to substantial questions of law, maintain 120-day filing limits with condonation powers, and allow appeals by revenue authorities or assessees. Key similarities include procedural safeguards, High Court discretion in formulating legal questions, and application of Civil Procedure Code provisions. Notable differences include Clause 365's streamlined language, removal of obsolete references to National Tax Tribunal, and explicit requirement for Assessing Officers to implement High Court judgments. The provisions balance judicial efficiency with access to justice while promoting consistency in tax law interpretation.

Income Tax Appellate Tribunal structure unchanged in new Bill despite updated criminal law references
The Income Tax Appellate Tribunal's procedural framework remains substantially unchanged between the Income Tax Bill 2025's Clause 364 and the current Income-tax Act 1961's Section 255. Both provisions maintain the dual-member bench structure with judicial and accountant members, single-member disposal for cases under fifty lakh rupees, special benches for complex matters, and procedural autonomy. The primary difference lies in updated cross-references to new criminal statutes - the Bharatiya Nyaya Sanhita 2023 and Bharatiya Nagarik Suraksha Sanhita 2023 - replacing references to the Indian Penal Code and Criminal Procedure Code. The new provision omits explicit e-governance provisions found in the current act, potentially signaling a return to inherent tribunal autonomy for procedural matters.

Income Tax Bill 2025 Clause 363 mirrors existing tribunal powers with structured timelines and financial safeguards
The Income Tax Bill 2025's Clause 363 largely mirrors Section 254 of the Income-tax Act 1961, governing the Appellate Tribunal's powers and procedures. Both provisions authorize the Tribunal to pass orders after hearing parties, rectify mistakes within six months, and grant stays of up to 180 days with 20% deposit requirements. Key features include mandatory disposal timelines of four years, automatic vacation of stays after 365 days regardless of fault, and discretionary cost awards. The provisions balance taxpayer rights with revenue protection, ensuring procedural fairness while preventing indefinite delays and frivolous appeals through structured timelines and financial safeguards.

Income Tax Bill 2025 Clause 362 modernizes appellate process maintaining two-month deadline and progressive fee structure
The Income Tax Bill 2025's Clause 362 modernizes the appellate process to the Income Tax Appellate Tribunal, replacing Section 253 of the Income-tax Act 1961. The provision streamlines appealable orders, maintains the two-month filing deadline, and preserves the progressive fee structure ranging from Rs. 500 to Rs. 10,000 based on assessed income. Key features include cross-objection rights within thirty days, discretionary delay condonation, and fee exemptions for revenue appeals. While substantive rights remain unchanged, the clause updates administrative nomenclature and removes obsolete references, enhancing clarity and procedural efficiency in tax dispute resolution.

Income Tax Bill 2025 Clause 361(2) creates dual appointment system for tribunal members based on hiring dates
The Income Tax Bill 2025's Clause 361(2) governs qualifications, appointments, and service conditions for tribunal members, creating a bifurcated system based on appointment dates. Post-2021 appointments follow the Tribunals Reforms Act 2021, while pre-2017 appointments continue under the original Income-tax Act 1961 provisions. This mirrors existing Section 252A of the Income-tax Act 1961, protecting vested rights of existing members while implementing reformed standards for new appointments. The provision aims to ensure tribunal independence, standardize appointment processes, and maintain continuity during legislative transitions, though it may create administrative complexity managing different service regimes simultaneously.

Income Tax Bill 2025 introduces Clause 361 reforming tribunal constitution with judicial and accountant members
The Income Tax Bill, 2025 introduces Clause 361 to reform the Income Tax Appellate Tribunal's constitution and governance, superseding Section 252 of the Income-tax Act, 1961. The clause authorizes the Central Government to constitute the tribunal with judicial and accountant members, requiring the President to be a sitting or retired High Court Judge with seven years' service or a Vice-President. While maintaining the tribunal's core structure, the bill defers member qualifications to the Tribunals Reforms Act, 2021, promoting uniformity across tribunals. Transitional provisions protect existing members' service conditions, preventing retrospective application of new rules and ensuring institutional continuity.

Income Tax Bill 2025 Clause 360 maintains appellate powers identical to Section 251 with modernized language
The Income Tax Bill 2025's Clause 360 and the Income-tax Act 1961's Section 251 both govern appellate powers of Commissioners and Joint Commissioners in tax matters. Both provisions empower appellate authorities to confirm, reduce, enhance, or annul assessments and penalty orders. Key powers include setting aside assessments for fresh consideration (limited to Commissioners), considering Settlement Commission materials when proceedings abate, and addressing any matters arising from proceedings. Both require reasonable opportunity of hearing before enhancement or reduction, upholding natural justice principles. The 2025 Bill modernizes language while maintaining substantive parity with existing law.