Assuming your talking about a PC/HTPC then it will all depend on which is better at scaling. If the PC's set to 1360x768(should actually be 1366) then the PC will do the upscaling. If the PC outputs at 1280x720 the TV will upscale to the panels resolution.
Try both, and pick the one which you find gives the best picture?
As James says, using the PC as the scaler gives a lot more choices and options, ffdshow has a gazillion scaling options.