Section 366 Income Tax Act 2025: How Many Judges Must Hear a High Court Tax Appeal?
Section 366 requires an appeal under Section 365 to be heard by at least two Judges of the High Court. It also provides a mechanism for deciding a point of law when the Judges disagree and there is no majority.
Applicable legislation: Income-tax Act, 2025, as amended by the Finance Act, 2026. Effective from 1 April 2026.
What is the minimum number of Judges required under Section 366(1)?
Section 366(1) applies when an appeal has been filed before the High Court under Section 365. Such an appeal must be heard by a Bench of not less than two Judges of the High Court. A single Judge is therefore not the statutory hearing Bench for an appeal governed by this provision.
The case is decided in accordance with the opinion of the Judges hearing it or, where applicable, the majority opinion of those Judges. Section 366 sets the bench-composition and decision-making rules; it does not itself create a new right of appeal or alter the conditions for admission under Section 365.
What happens when High Court Judges disagree under Section 366(2)?
Section 366(2) addresses a situation in which there is no majority among the Judges hearing the appeal. The Judges must state the point of law on which they differ.
The case is then heard on that point only by one or more other Judges of the High Court. The disputed point is decided according to the majority opinion of all Judges who have heard the case, including those who originally heard it. The additional hearing is therefore confined to the identified point of law, rather than automatically reopening every issue in the appeal.
How does the statutory decision process work?
| Stage | Statutory position |
|---|---|
| 1. High Court appeal | An appeal is filed under Section 365, subject to that section's requirements. |
| 2. Bench hearing | At least two High Court Judges hear the appeal under Section 366(1). |
| 3. Agreement or majority | The case is decided according to the Judges' opinion or the majority opinion, where one exists. |
| 4. No majority | The Judges identify and state the point of law on which they differ. |
| 5. Additional hearing | One or more other High Court Judges hear only that point of law. |
| 6. Final determination of disputed point | The majority of all Judges who heard the case, including the original Judges, determines that point. |
These provisions should be read with Section 365, which governs the substantial-question-of-law threshold and the High Court appeal procedure. Section 367 separately concerns an appeal to the Supreme Court where the High Court certifies the case as fit for such appeal.
Relevant statutory terms and legal expressions
Practical illustrations
Example 1: Two Judges agree
A Section 365 appeal is heard by two High Court Judges. Both agree on the legal question. Their common opinion determines the appeal; Section 366(2)'s mechanism for disagreement is not needed.
Example 2: Two Judges differ
Two Judges hear an income-tax appeal and reach different conclusions on a point of law. Because there is no majority, they state the point of difference. If one additional Judge hears that point, the majority opinion among the three Judges who have heard it determines the disputed point.
Example 3: Larger Bench
An appeal is heard by three Judges and two agree on the point in issue. The majority opinion governs under Section 366(1); the special no-majority procedure is unnecessary.
Frequently asked questions
Can a single High Court Judge decide an income-tax appeal under Section 365?
No. Section 366(1) requires an appeal filed under Section 365 to be heard by a Bench of at least two Judges.
What if the two Judges reach opposite conclusions?
Under Section 366(2), they must state the point of law on which they differ. One or more additional Judges then hear that point only.
Does the additional Judge rehear the whole appeal?
Section 366(2) provides for the additional hearing upon the point of law on which the original Judges differ. It does not prescribe a general rehearing of the entire appeal.
Whose opinions count after the additional hearing?
The majority is calculated among all Judges who heard the disputed point, including the Judges who first heard the case.
Does Section 366 provide a direct appeal to the Supreme Court?
No. Section 366 governs High Court Bench composition and disagreements. Appeals to the Supreme Court are dealt with separately under Section 367.
Official law and related provisions
Consult the official consolidated Income-tax Act, 2025, as amended by the Finance Act, 2026. See also Section 365: High Court appeals and Section 364: Appellate Tribunal procedure.
Updated 12 November 2026. This article explains the statutory text and does not replace advice on the facts of a particular appeal.