Chapter XVIII - Appeals, Revisions and Alternate Dispute Resolutions
Section 364
Section 364: procedure of the Appellate Tribunal and its Benches
Section 364 explains how the Appellate Tribunal actually functions - through Benches constituted by its President, normally with one Judicial Member and one Accountant Member, with single-member disposal allowed for smaller cases, Special Benches for particular matters, and a majority-opinion mechanism when members disagree. It also confirms the Tribunal's powers as a judicial body.
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This article is for general information. Refer to the Income-tax Act, 2025 as amended by the Finance Act, 2026 and the Taxation and Other Laws (Amendment) Act, 2026 for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
(1) The powers and functions of the Appellate Tribunal may be exercised and discharged by Benches constituted by the President of the Appellate Tribunal from among the members thereof.
(2) Subject to the provisions contained in sub-section (3), a Bench shall consist of one Judicial Member and one accountant member.
(3) The President, or any other member of the Appellate Tribunal authorised in this behalf by the Central Government, may sitting singly, dispose of any case allotted to the Bench, pertaining to an assessee whose total income as computed by the Assessing Officer in the case does not exceed rupees fifty lakh.
(4) The President of the Appellate Tribunal may, for the disposal of any particular case, constitute a Special Bench consisting of three or more members, one of whom shall necessarily be a judicial member and one an accountant member.
(5) If the members of a Bench differ in opinion on any point, the point shall be decided according to the opinion of the majority, if there is a majority, but if the members are equally divided, they shall state the point or points on which they differ, and the case shall be referred by the President of the Appellate Tribunal for hearing on such point or points by one or more of the other members of the Appellate Tribunal, and such point or points shall be decided according to the opinion of the majority of the members of the Appellate Tribunal who have heard the case, including those who first heard it.
(6) Subject to the provisions of this Act, the Appellate Tribunal shall have power to regulate its own procedure and the procedure of Benches thereof in all matters arising out of the exercise of its powers or of the discharge of its functions, including the places at which the Benches shall hold their sittings.
(7) The Appellate Tribunal, for the purposes of discharging its functions, shall have all the powers which are vested in the income-tax authorities referred to in section 246, and any proceeding before the Appellate Tribunal shall be deemed to be a judicial proceeding within the meaning of sections 229 and 267 and for the purposes of section 233 of the Bharatiya Nyaya Sanhita, 2023, and the Appellate Tribunal shall be deemed to be a Civil Court for all the purposes of section 215 and Chapter XXXVII of the Bharatiya Nagarik Suraksha Sanhita, 2023.
Introduction
Section 364 governs how the Appellate Tribunal works through its Benches, including ordinary membership, permitted single-member disposal and larger Special Benches.
It also specifies how a difference of opinion is resolved and recognises the Tribunal’s power to regulate its procedure within the Act.
Key takeaways
Ordinary Bench
Subject to the specific exception, a Bench consists of one Judicial Member and one Accountant Member.
Single-member limit
A qualifying case may be disposed of singly only when the assessed total income does not exceed ₹50 lakh and the member is authorised as the section requires.
Differences go to a majority
Where members are equally divided, the disputed points are heard by additional member or members and decided by the overall majority.
Special Bench
The President may constitute a Special Bench of at least three members with both a Judicial and an Accountant Member.
Benches of the Appellate Tribunal
The powers and functions of the Appellate Tribunal are exercised through Benches constituted by its President from among its Members.
Subject to the point below, a Bench consists of one Judicial Member and one Accountant Member.
The President, or any other Member authorised by the Central Government, may sit singly to dispose of a case allotted to the Bench where the assessee's total income, as computed by the Assessing Officer, does not exceed ₹50,00,000.
The President may constitute a Special Bench of three or more Members (including at least one Judicial Member and one Accountant Member) for the disposal of a particular case.
Resolving a difference of opinion
If Bench Members differ in opinion on a point, the majority view decides it. If the Members are equally divided, they state the point(s) of difference, and the President refers the case for hearing on that point by one or more other Members - the point is then decided by the majority of the Members who have heard the case, including those who heard it first.
Regulating its own procedure and judicial powers
Subject to the Act, the Appellate Tribunal has the power to regulate its own procedure and that of its Benches in all matters relating to the exercise of its powers or discharge of its functions, including the places where Benches sit.
For discharging its functions, the Tribunal has all the powers vested in income-tax authorities under section 246, and any proceeding before it is deemed a judicial proceeding for the purposes of sections 229 and 267, and for the purposes of section 233 of the Bharatiya Nyaya Sanhita, 2023. The Tribunal is deemed a Civil Court for all purposes of section 215 and Chapter XXXVII of the Bharatiya Nagarik Suraksha Sanhita, 2023.
Step-by-step flow for how the Appellate Tribunal hears a case under Section 364
- 1
Benches
Under Section 364(1), the Tribunal's powers are exercised by Benches constituted by the President from among its members. A Bench ordinarily has one Judicial Member and one Accountant Member (Section 364(2)).
- 2
Does the total income computed by the Assessing Officer exceed ₹50 lakh?
Section 364(3) allows the President, or a member authorised by the Central Government, to sit singly in a case of an assessee whose total income as computed by the Assessing Officer does not exceed ₹50 lakh.
- No, it does not exceed ₹50 lakh: The case may be disposed of by a single member. Go to the next step.
- Yes: The case is heard by a Bench of two, or by a Special Bench. Go to the next step.
- 3
Is a Special Bench constituted?
For a particular case, the President may constitute a Special Bench of three or more members, including at least one Judicial Member and one Accountant Member (Section 364(4)).
- 4
Do the members differ?
Under Section 364(5), the majority opinion decides. If the members are equally divided, they state the points of difference, and the President refers those points to one or more other members. The points are decided by the majority of all members who have heard the case, including those who first heard it.
- 5
Procedure and powers
The Tribunal regulates its own procedure, including where Benches sit (Section 364(6)). It has the powers of the income-tax authorities referred to in section 246, and its proceedings are judicial proceedings for the purposes listed in Section 364(7).
Practical checklist
Do
- Check whether the assigned case goes to the ordinary two-member Bench, a permitted single-member Bench, or a specially constituted Bench.
- For single-member disposal, compare the Assessing Officer’s computed total income with the ₹50 lakh limit in sub-section (3).
- If Bench members split evenly, identify the stated points of difference and follow the referral and majority procedure in sub-section (5).
Avoid
- Do not assume a member sitting singly may hear every appeal.
- Do not confuse a Special Bench constituted by the President with the ordinary Bench composition.
Illustrative example
Worked example: a difference of opinion on a two-member Bench
Hypothetical facts (illustration only, not a real taxpayer): An appeal of a firm is heard by a Bench of one Judicial Member and one Accountant Member. The total income computed by the Assessing Officer is ₹72 lakh. The two members disagree on whether one receipt is taxable. All figures are assumed.
Bench size
₹72 lakh exceeds ₹50 lakh, so Section 364(3) single-member disposal is not available; the case is before a two-member Bench.
Equal division
With two members disagreeing, there is no majority. They state the point on which they differ.
Reference
The President refers that point for hearing by one or more other members. Suppose one more member hears it.
Decision
Three members have now heard the point. If the third member agrees with one of the original two, the point is decided by that 2 to 1 majority.
Outcome
- Only the point of difference is referred, not the whole appeal.
- The final view is the majority of all members who heard the point, including the original two.
Glossary
- Bench
- The member grouping constituted by the Tribunal President to exercise Tribunal functions.
- Special Bench
- A Bench of three or more members formed for a particular case, including at least one judicial and one accountant member.
Frequently asked questions
Can a single member of the Appellate Tribunal decide my appeal?
Yes, if the total income of the assessee as computed by the Assessing Officer does not exceed ₹50,00,000, the President or an authorised Member may sit singly and dispose of the case, under Section 364(3).
What happens if the two members of a Bench disagree?
If there is a majority view, that decides the point. If the Bench is equally divided, the point of difference is referred by the President for hearing by one or more other Members, and the majority of all Members who heard the case then decides it.
Is the Appellate Tribunal treated as a court for legal purposes?
Yes - proceedings before it are deemed judicial proceedings for specified purposes, and the Tribunal is deemed a Civil Court for the purposes of section 215 and Chapter XXXVII of the Bharatiya Nagarik Suraksha Sanhita, 2023.
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Get help with your Appellate Tribunal appealLast updated 10 October 2026