Section 375 Income Tax Act 2025: Can Repetitive Appeals on the Same Legal Question Be Avoided?
Section 375 provides an assessee-led procedure to avoid repeated litigation where an identical question of law arises in the same assessee's cases for different tax years and that question is already pending before a High Court or the Supreme Court in the other case.
Part: Special provisions for avoiding repetitive appeals.
Source: Section 375, Income-tax Act, 2025, as amended by the Finance Act, 2026.
When can an assessee invoke Section 375?
Under Section 375(1), the assessee must claim that a question of law arising in a case for one tax year pending before the Assessing Officer or an appellate authority (the relevant case) is identical with a question of law in the same assessee's case for another tax year (the other case). The legal question in the other case must be pending in one of the following proceedings:
- A High Court reference under Section 256 of the Income-tax Act, 1961, or High Court appeal under Section 260A of that Act.
- A Supreme Court reference under Section 257 of the 1961 Act, or appeal under Section 261 of that Act.
- A High Court appeal under Section 365 of the Income-tax Act, 2025.
- A Supreme Court appeal under Section 367 of the 2025 Act.
- A special leave petition under Article 136 of the Constitution against an Appellate Tribunal or jurisdictional High Court order.
The assessee may furnish a declaration in the prescribed form and manner to the Assessing Officer or appellate authority. The declaration states that, if the authority agrees to apply the eventual final decision in the other case, the assessee will not raise that question of law in the relevant case before an appellate authority or in a subsequent higher appeal.
How do the seven subsections of Section 375 work?
| Provision | Rule | Practical significance |
|---|---|---|
| 375(1) | Assessee may declare that an identical question of law is pending in another tax year's case before a specified higher forum. | Initiates the statutory procedure and conditional undertaking not to re-litigate that question. |
| 375(2) | If the declaration is furnished to an appellate authority, it must obtain the Assessing Officer's report on correctness of the claim and hear the officer if requested. | Ensures scrutiny of the asserted identity of legal questions. |
| 375(3) | The Assessing Officer or appellate authority admits or rejects the claim by written order depending on whether the legal questions are identical. | Identity of the question of law must be established; filing alone is insufficient. |
| 375(4) | The order admitting or rejecting the claim is final and cannot be questioned through appeal or revision under the Act. | No statutory appeal or revision against this specific order. |
| 375(5) | If admitted, the relevant case may be disposed of without waiting for the other case; the assessee cannot raise the same legal question in an appeal concerning the relevant case. | Prevents repetitive litigation on the admitted identical legal issue. |
| 375(6) | Once the decision on the question of law in the other case becomes final, it is applied to the relevant case; the order may be amended if needed. | Ensures conformity with the eventual final legal ruling. |
| 375(7) | Defines appellate authority, case and subsequent appeal before a higher forum. | Fixes the statutory scope of the procedure. |
Does filing a declaration automatically suspend the relevant case?
No. Section 375(3) requires a written order admitting the claim, and Section 375(5)(a) expressly permits the relevant case to be disposed of without awaiting the final decision in the other case. The provision should not be described as an automatic stay.
What happens after the other case is finally decided?
Under Section 375(6), the final decision on the identical question of law must be applied to the relevant case. If necessary, the Assessing Officer or appellate authority must amend the order disposing of that case so it conforms to the final decision.
Definitions expressly supplied by Section 375(7)
- Appellate authority - Section 375(7)(a)
- The Joint Commissioner (Appeals), Commissioner (Appeals), or Appellate Tribunal.
- Case - Section 375(7)(b)
- Any proceeding under the Act for assessment of an assessee's total income or for imposition of a penalty or fine on that assessee.
- Subsequent appeal before a higher forum - Section 375(7)(c)
- An appeal to the High Court under Section 365, an appeal to the Supreme Court under Section 367, or a special leave petition under Article 136 of the Constitution against the order of the Appellate Tribunal or jurisdictional High Court.
- Relevant case
- The assessee's case for the tax year currently pending before the Assessing Officer or an appellate authority, as described in Section 375(1)(a).
- Other case
- The same assessee's case for another tax year containing the identical legal question pending in one of the specified higher proceedings.
Practical illustration
An assessee has a dispute about the interpretation of a deduction provision for Tax Year 1, and an appeal involving that question is pending before the High Court. An assessment proceeding for Tax Year 2 involves the identical question of law. The assessee may submit a prescribed declaration under Section 375(1) in the Tax Year 2 proceeding. If the authority admits the claim by written order, the Tax Year 2 case can be disposed of while the High Court case remains pending. The assessee cannot separately appeal that same question in Tax Year 2, and the final High Court decision in Tax Year 1 is applied to Tax Year 2, with amendment of its order if necessary.
Important distinction: The two cases must concern the same assessee in different tax years. A similar issue in an unrelated taxpayer's case does not, by itself, meet Section 375(1)(a). See also Section 376 for a separate statutory procedure.
Frequently asked questions
Is a Section 375 declaration mandatory?
No. Section 375(1) says the assessee may furnish a declaration when the statutory conditions are met.
Can the declaration be rejected?
Yes. Under Section 375(3), the Assessing Officer or appellate authority must reject it by written order if not satisfied that the questions of law are identical.
Can the admission or rejection order be appealed?
No. Section 375(4) expressly makes that order final and excludes appeal or revision under the Act against it.
Does the assessee surrender every right of appeal?
No. The statutory restriction concerns the identified question of law in the relevant case. Section 375 does not state that every unrelated issue in the case becomes unappealable.
Which prescribed declaration form should be used?
Section 375(1) requires the declaration to be furnished in the prescribed form and manner. The section itself does not specify a form number; the applicable rules and official filing instructions should be checked before submission.
Related provisions
Section 365 - High Court appeals; Section 367 - Supreme Court appeals; Section 373 - Departmental appeals; and Section 376 - procedure involving identical questions of law pending before higher courts.
Legal note: This article explains the statutory mechanism and is not a substitute for advice on a particular assessment or appeal. Verify applicable rules and filing requirements before making a declaration.