Income Tax Law / Appellate Tribunal
Section 255 of Income Tax Act, 1961: Procedure of Appellate Tribunal
A practical explanation of the Income Tax Appellate Tribunal (ITAT), its bench composition, single-member jurisdiction, special benches, difference-of-opinion procedure and statutory powers, including the corresponding Section 364 of the Income-tax Act, 2025.
What is Section 255 of the Income-tax Act, 1961?
Section 255 governs how the ITAT exercises its appellate functions. It addresses the constitution of benches, who may hear cases, how differences between members are resolved, the Tribunal's procedural autonomy and certain powers needed for adjudication. Appeals to the Tribunal and its orders are addressed separately in Sections 253 and 254.
Section 255(1) and (2): Constitution of ITAT benches
Under sub-section (1), the President of the Appellate Tribunal constitutes benches from among the Tribunal's members. Sub-section (2) provides that, ordinarily, a bench consists of one Judicial Member and one Accountant Member, subject to the single-member provision in sub-section (3).
Section 255(3): Single-member bench and Rs. 50 lakh limit
The President, or another member authorised by the Central Government, may sit singly to dispose of an allotted case where the assessee's total income as computed by the Assessing Officer does not exceed Rs. 50 lakh. This statutory test refers to assessed total income, not the amount of tax disputed or the monetary value of the grounds of appeal. A single-member hearing is permissible only within the applicable statutory and allocation requirements.
Special Bench: Three or more members
Section 255(3) also empowers the President to constitute a Special Bench for a particular case, consisting of three or more members, including at least one Judicial Member and one Accountant Member. This arrangement permits specified matters to be heard by a larger bench.
Section 255(4): When bench members disagree
If bench members differ on a point, the majority view prevails where there is a majority. If the members are equally divided, they record the disputed point or points and the President refers those points to one or more other members. The result follows the majority opinion of all members who heard those points, including the original members.
Section 255(5): Power to regulate procedure
Subject to the Act, the ITAT may regulate its own procedure and the procedure of its benches, including the places at which benches hold sittings. The exercise of this authority is also informed by the applicable ITAT procedural rules and principles of natural justice.
Section 255(6): Evidence-related powers and judicial proceedings
For discharging its functions, the Tribunal has the powers vested in income-tax authorities under Section 131, which deals with specified powers relating to discovery, attendance, evidence and documents. Section 255(6) additionally treats Tribunal proceedings as judicial proceedings and the Tribunal as a civil court for the limited statutory purposes specified in that provision. Historical references to criminal statutes should be read with applicable repeal, replacement and saving provisions.
Corresponding law: Section 364 of Income-tax Act, 2025
Section 364 reorganises the procedural rules for the ITAT while retaining the principal framework. In the 2025 Act, the provisions for a Special Bench, difference of opinion, procedural regulation and evidentiary powers are separately numbered.
| Subject | 1961 Act | 2025 Act |
|---|---|---|
| Constitution of benches | 255(1) | 364(1) |
| Ordinary two-member bench | 255(2) | 364(2) |
| Single-member bench: Rs. 50 lakh | 255(3) | 364(3) |
| Special Bench | 255(3) | 364(4) |
| Difference of opinion | 255(4) | 364(5) |
| Regulation of procedure | 255(5) | 364(6) |
| Evidence and judicial powers | 255(6) | 364(7) |
Section 364(7) refers to powers under Section 246 of the 2025 Act and to relevant provisions of the Bharatiya Nyaya Sanhita, 2023 and Bharatiya Nagarik Suraksha Sanhita, 2023. This updates the statutory cross-references appearing in the older provision.
Additional procedural provisions in the later text of Section 255
The historical webpage reproduced only sub-sections (1) to (6). Later legislative amendments also introduced provisions concerning government-notified schemes for disposal of Tribunal appeals, including technology-enabled proceedings and the laying of notifications before Parliament. For the precise operation of those provisions in a saved or pending proceeding, consult the official text applicable to that proceeding and any relevant notifications.
Frequently asked questions
Can a single ITAT member decide every tax appeal?
No. Single-member disposal is subject to the assessed-total-income ceiling of Rs. 50 lakh and the applicable authorisation and allocation requirements.
Who can constitute a Special Bench?
The President of the ITAT may constitute a Special Bench for a particular case with at least three members, including both judicial and accountant representation.
What happens if the two members disagree?
The President refers the identified points of difference to additional member or members; the majority of all members hearing those points determines the outcome.
Does Section 255 still matter after April 2026?
Yes. The 2025 Act contains saving provisions for earlier proceedings. For the new statutory framework, refer to Section 364 of the Income-tax Act, 2025.
Official legislation and useful resources
- Income Tax Department: Section 255 of Income-tax Act, 1961
- Income Tax Department: Income-tax Act, 2025 (official PDF, including Section 364)
- Income Tax Department: Appeals and revisions guidance
- Income Tax Appellate Tribunal: official website
Updated: 27 October 2026. This article is a general explanation, not a substitute for the operative statute, notified rules or advice on a particular appeal.