Section 262 of ITA, 1961 : Section 262: Hearing Before Supreme Court

Explanation using Example

Imagine a taxpayer, Mr. Gupta, disagrees with the Income Tax Department's assessment of his tax liability. He contests the assessment and the case eventually goes to the High Court. The High Court rules against Mr. Gupta, who then decides to appeal to the Supreme Court.

Under Section 262(1) of the Income-tax Act, 1961, the process for Mr. Gupta's appeal to the Supreme Court will follow, as closely as possible, the procedures outlined in the Code of Civil Procedure for appeals to the Supreme Court. However, this will not interfere with certain other specific provisions of the Income-tax Act regarding High Court judgments and their execution.

As per Section 262(2), the Supreme Court has the authority to decide who will bear the costs of this appeal, which could be Mr. Gupta, the Income Tax Department, or both parties in any proportion.

If the Supreme Court decides to overturn or alter the High Court's decision, Section 262(3) ensures that the new judgment is implemented in the same way as if the High Court had originally given it.