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Section 364 Income Tax Act 2025: How Are ITAT Benches Constituted and Appeals Heard?

Section 364 sets out how the Income Tax Appellate Tribunal (ITAT) exercises its functions through Benches. It covers the ordinary two-member Bench, limited single-member disposal, Special Benches, differences of opinion and the Tribunal's procedural and judicial powers.

Statutory heading: Procedure of Appellate Tribunal. Applicable law: Section 364 of the Income-tax Act, 2025, as amended by the Finance Act, 2026. The Act came into force on 1 April 2026.

How is an ITAT Bench constituted under Section 364?

Section 364(1): Constitution of Benches

The powers and functions of the Appellate Tribunal may be exercised and discharged by Benches constituted by the President from among the Tribunal's members. The President determines Bench constitution within the statutory framework.

Section 364(2): Ordinary two-member Bench

Subject to the single-member exception in sub-section (3), an ITAT Bench consists of one Judicial Member and one Accountant Member. This is the statutory default; the composition is not left to the parties' choice.

When may an ITAT appeal be heard by a single member?

Section 364(3): Rs. 50 lakh assessed-income limit

The President, or another Tribunal member authorised by the Central Government for this purpose, may sit singly and dispose of a case allotted to the Bench where the total income computed by the Assessing Officer in that case does not exceed Rs. 50 lakh.

Important: The threshold concerns the total income computed by the Assessing Officer, not the amount of tax demanded, the disputed addition, the penalty amount or the assessee's turnover. The provision uses may, so qualifying cases are not necessarily required to be decided by a single member.

Can the ITAT President constitute a Special Bench?

Section 364(4): Three or more members

Yes. For disposal of a particular case, the President may constitute a Special Bench of three or more members. At least one Judicial Member and one Accountant Member must be included. The statute does not prescribe that every case involving an important question must be placed before a Special Bench.

What happens when ITAT Bench members disagree?

Section 364(5): Majority opinion and reference of divided points

If members differ on a point, the majority opinion governs where a majority exists. If the members are equally divided, they must identify the point or points of disagreement. The President then refers those points for hearing by one or more other Tribunal members.

The disputed points are decided according to the majority opinion of all members who heard those points, including the members who originally heard the case. The statutory mechanism resolves the difference on the referred points rather than treating an equal split as a final determination.

What powers does the ITAT have to regulate proceedings?

Section 364(6): Control over procedure and sittings

Subject to the Income-tax Act, the Tribunal may regulate its own procedure and that of its Benches in matters arising from their functions. This expressly includes the places at which Benches hold their sittings. Tribunal procedural rules and applicable directions should also be consulted for the practical conduct of an appeal.

Section 364(7): Statutory powers and judicial character

For discharge of its functions, the Tribunal has the powers vested in the income-tax authorities referred to in Section 246. Proceedings before it are deemed judicial proceedings for the specified purposes of Sections 229, 267 and 233 of the Bharatiya Nyaya Sanhita, 2023. The Tribunal is deemed a civil court for the purposes of Section 215 and Chapter XXXVII of the Bharatiya Nagarik Suraksha Sanhita, 2023.

These are purpose-specific legal deeming provisions. They do not mean that the ITAT becomes an ordinary civil court for all purposes or acquires general civil-court jurisdiction.

Section 364 at a glance

Provision	Subject	Statutory rule
364(1)	Constitution of Benches	President constitutes Benches from Tribunal members.
364(2)	Normal composition	One Judicial Member and one Accountant Member.
364(3)	Single-member disposal	Authorised member may decide allotted cases with AO-computed total income not exceeding Rs. 50 lakh.
364(4)	Special Bench	Three or more members, including at least one Judicial and one Accountant Member.
364(5)	Difference of opinion	Majority governs; equal division leads to reference of disputed points to additional members.
364(6)	Procedural regulation	Tribunal regulates its own and Bench procedure, including sitting places, subject to the Act.
364(7)	Tribunal powers	Specified tax-authority powers, judicial-proceeding status and deemed civil-court status for stated purposes.

Relevant statutory expressions

Appellate Tribunal: The Income Tax Appellate Tribunal constituted under Section 361 of the Income-tax Act, 2025.

Judicial Member and Accountant Member: The two categories of Tribunal members referred to in Section 361 and used for the composition requirements of Section 364.

Assessing Officer: The income-tax authority responsible for the relevant assessment; the AO's computation of total income is the statutory measure for the single-member threshold.

Bench: A panel of Tribunal members constituted by its President to exercise Tribunal functions; its ordinary composition is prescribed by Section 364(2).

Special Bench: A Bench constituted under Section 364(4) for a particular case, comprising at least three members with the required Judicial and Accountant Member representation.

Majority opinion: The opinion supported by more than half of the members deciding a point, with the additional-member reference mechanism applying when the original Bench is equally divided.

Practical illustrations

Example 1: Single-member eligibility

The Assessing Officer computes an assessee's total income at Rs. 42 lakh. Section 364(3) permits the President or an appropriately authorised member to dispose of an allotted case sitting singly. This does not guarantee that the appeal will be allocated to a single-member Bench.

Example 2: Threshold exceeded

If the Assessing Officer computes total income at Rs. 62 lakh, the case does not satisfy the Rs. 50 lakh threshold in Section 364(3). The ordinary composition rule applies, unless a different valid statutory Bench arrangement, such as a Special Bench, is made.

Example 3: Difference of opinion

Suppose a two-member Bench disagrees on a legal issue. The members identify the disputed point, which the President refers to an additional member. The issue is then resolved by the majority opinion of the three members who heard it, including the original two.

Frequently asked questions

Does every ITAT appeal require two members?

No. Two members are the ordinary rule under Section 364(2), but Section 364(3) permits qualifying single-member disposal, and Section 364(4) allows Special Benches.

Is the Rs. 50 lakh limit based on disputed tax?

No. It is based on the total income computed by the Assessing Officer in the case.

Who can create an ITAT Special Bench?

The President of the Appellate Tribunal may constitute one for disposal of a particular case.

What if two Tribunal members reach opposite conclusions?

Under Section 364(5), the points of difference are referred to one or more other members, and the majority of all members who heard those points decides them.

Does Section 364 give the ITAT all powers of a civil court?

No. The section specifies tax-authority powers and deems the Tribunal a civil court for particular statutory purposes only.

Official text and connected provisions

Read the official Income-tax Act, 2025, as amended by the Finance Act, 2026. Related articles: Section 361: Appellate Tribunal, Section 362: Appeals to ITAT, Section 363: Orders of ITAT and Section 365: Appeal to High Court.

Updated: 12 November 2026. This article is general legal information and should be read with the applicable Tribunal rules and the full statutory text.