Section 250 of the Income-tax Act, 1961: Procedure in Appeal
Section 250 of the Income-tax Act, 1961 sets out how a first appeal is heard and decided. It covers notice of hearing, the right to representation, adjournment, further inquiry, additional grounds, written decisions and communication of appellate orders.
Meaning and scope of Section 250
An appeal is a statutory remedy by which a person aggrieved by an appealable tax order asks the competent appellate authority to review it. The appellant is the person filing the appeal. The Assessing Officer is the officer whose order is challenged. Section 250 deals with the procedure after an appeal is filed, not the complete list of appealable orders or the filing deadline.
Read it alongside section 246A (appealable orders), section 249 (form, fee and limitation) and section 251 (powers of the appellate authority). The Joint Commissioner (Appeals) framework introduced by the Finance Act, 2023 also requires attention to the applicable allocation and appeal provisions.
Section 250 explained subsection by subsection
Section 250(1): Fixing and notifying the hearing
The Commissioner (Appeals) fixes the day and place for hearing and gives notice to the appellant and the Assessing Officer against whose order the appeal is filed. In a faceless or electronic process, communications and hearing arrangements are governed by the applicable notified scheme and portal procedure.
Section 250(2): Right to be heard
The appellant may appear personally or through an authorised representative. The Assessing Officer may likewise be heard personally or through a representative. This reflects the principle that both sides should have a fair opportunity to present their positions.
Section 250(3): Adjournment
The appellate authority may adjourn the hearing from time to time. An adjournment is discretionary; a request should ordinarily explain the reason and be made through the prescribed channel.
Section 250(4): Further inquiry
Before deciding the appeal, the Commissioner (Appeals) may make further inquiries or direct the Assessing Officer to inquire and report the result. This power assists fact-finding but must be exercised consistently with applicable rules on evidence and hearing.
Section 250(5): Additional grounds of appeal
The appellant may be allowed to argue a ground not included in the original memorandum of appeal if the Commissioner (Appeals) is satisfied that the omission was not wilful or unreasonable. An additional ground should identify the legal or factual issue and explain why it was omitted initially.
Section 250(6): Written, reasoned appellate order
The order disposing of the appeal must be in writing and state (i) the points for determination, (ii) the decision on each point and (iii) the reasons for the decision. A reasoned order enables the parties to understand the outcome and assess further remedies.
Section 250(6A): Endeavour to dispose of the appeal within one year
Where possible, the Commissioner (Appeals) may hear and decide the appeal within one year from the end of the financial year in which it was filed under section 246A. The statutory language is qualified by where it is possible; the passage of one year does not itself allow the appeal automatically.
Section 250(7): Communication of the order
After disposal, the appellate order must be communicated to the assessee and the prescribed senior income-tax authority. The date and mode of service can be relevant to subsequent appeal periods.
Practical appeal hearing process
- File the appeal: Submit Form 35 with grounds, statement of facts and prescribed fee where applicable, within the relevant limitation period.
- Receive hearing notice: Monitor the registered email and e-filing account for notices and electronic communications.
- Prepare submissions: Organise the assessment order, demand notice, supporting documents, legal authorities and ground-wise arguments.
- Respond to queries: Provide explanations and evidence within the prescribed time; apply for an adjournment if justified.
- Address additional grounds or evidence: Follow the conditions in section 250(5) and Rule 46A, as relevant. Additional grounds and additional evidence are different procedural questions.
- Receive the decision: Read the written findings and directions, and check whether further appeal or other action is necessary.
Additional evidence versus additional grounds
| Issue | Applicable principle |
|---|---|
| Additional ground of appeal | Section 250(5) permits consideration where omission was not wilful or unreasonable. |
| Additional documentary evidence | Rule 46A of the Income-tax Rules, 1962 restricts production of additional evidence before the Commissioner (Appeals), subject to specified exceptions and procedure. |
| Further inquiry | Section 250(4) permits inquiry by the appellate authority or a report from the Assessing Officer. |
| Final appellate decision | Section 250(6) requires a written order setting out issues, decisions and reasons. |
Faceless appeal and electronic hearing
The first-appeal process has been subject to notified faceless appeal schemes and later amendments. E-notices, online submissions, electronic records and requests for personal hearing must be handled in accordance with the scheme applicable to the proceeding. Do not assume every appeal follows the same workflow: jurisdiction, assignment and the governing notification should be checked on the official Income Tax e-Filing portal.
Income-tax Act, 2025 and transitional proceedings
The Income-tax Act, 2025 reorganises and renumbers the provisions governing appeals. The applicable new-Act section and procedural rules should be checked against the enacted text and subsequent amendments rather than treating the former section number as automatically interchangeable. Savings and transitional provisions can preserve proceedings relating to tax years governed by the 1961 Act.
Original webpage: statutory outline and historical notes
Read the original Section 250 summary and amendment history
The uploaded article recorded the following subsections: (1) fixing the hearing and issuing notice; (2) rights of the appellant and Assessing Officer to be heard; (3) adjournment; (4) further inquiry; (5) additional grounds; (6) written, reasoned orders; (6A) a one-year disposal objective where possible; and (7) communication of orders.
Its amendment notes refer to the Finance Act, 1977; Income-tax amendments of 1988 and 1998; the Finance Act, 1999 insertion of subsection (6A); and the 2014 substitutions relating to Principal Chief Commissioners and Principal Commissioners. Those historical references should be read with later amendments and the legislation applicable to the appeal.
Frequently asked questions
What does Section 250 of the Income-tax Act provide?
Section 250 prescribes the procedure for hearing and disposing of first appeals, including notice, hearing rights, inquiry, additional grounds and reasoned written orders.
Can an assessee raise an additional ground during an appeal?
Under section 250(5), the appellate authority may allow an additional ground where omission from the appeal was not wilful or unreasonable.
Must an appellate order give reasons?
Yes. Section 250(6) requires the written order to state the points for determination, the decision on those points and the reasons for the decision.
Is the one-year period for deciding an appeal mandatory?
Section 250(6A) expresses an objective to hear and decide appeals within one year from the end of the financial year in which the appeal was filed, where possible; it is not an automatic disposal deadline.
Official legislation and filing resources
- Income Tax Department - Acts, rules and notifications
- Income Tax Department - e-Filing portal
- India Code - Central legislation
Updated 27 October 2026. General legal information; verify the enacted text, applicable scheme and current notifications for your particular appeal.