Case before High Court to be heard by not less than two Judges.
366(1)
When an appeal has been filed before the High Court under section 365, it shall be heard by a bench of not less than two Judges of the High Court, and shall be decided as per the opinion of such Judges or of the majority, if any, of such Judges.
366(2)
Where there is no such majority, the Judges shall state the point of law upon which they differ and the case shall then be heard upon that point only by one or more of the other Judges of the High Court and such point shall be decided according to the opinion of the majority of the Judges who have heard the case including those who first heard it.
Section Summary:
This section outlines the procedure for hearing appeals before the High Court under Section 365 of the Income Tax Act. It mandates that such appeals must be heard by a bench of at least two judges. If the judges disagree, the case is referred to additional judges to resolve the disagreement, and the majority opinion prevails.
Key Changes:
This section formalizes the process for resolving appeals in the High Court, ensuring that cases are heard by a minimum of two judges. It also introduces a mechanism to resolve disagreements among judges by referring the matter to additional judges for a majority decision.
Practical Implications:
- For Taxpayers and Businesses: This ensures a fair and transparent process for resolving tax disputes, as cases are decided by multiple judges rather than a single judge. It reduces the likelihood of arbitrary decisions.
- For the Judiciary: It streamlines the process for handling appeals and provides a clear framework for resolving disagreements among judges.
Critical Concepts:
- Bench of Judges: A group of judges (at least two) who hear and decide on the appeal.
- Majority Opinion: The decision supported by more than half of the judges hearing the case.
- Point of Law: A specific legal issue or question that arises during the case, which may require further clarification or interpretation.
Compliance Steps:
- For Taxpayers: No direct compliance steps are required, as this section governs the judicial process.
- For the High Court: Ensure that appeals under Section 365 are heard by a bench of at least two judges. If judges disagree, refer the case to additional judges for a majority decision.
Examples:
- Scenario 1: A taxpayer appeals a tax assessment decision to the High Court. The case is heard by two judges. Both agree on the outcome, and the decision is finalized based on their unanimous opinion.
- Scenario 2: Two judges hearing the appeal disagree on a specific legal issue. They refer the case to a third judge, who reviews the issue. The final decision is based on the majority opinion of all three judges.
This section ensures a structured and fair process for resolving tax-related appeals in the High Court.