Case before High Court to be heard by not less than two Judges
[As per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]
Section 366(1) of Income Tax Act 2025
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.
Section 366(2) of Income Tax Act 2025
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.
FAQs on Section 366 of Income Tax Act 2025
What is the minimum number of Judges required to hear an appeal before the High Court under Section 366(1)?
An appeal under Section 365 must be heard by a bench of not less than two Judges of the High Court.
How is the decision made when more than two Judges hear the case?
The decision is made according to the opinion of the majority of the Judges who hear the case.
What happens if there is no majority opinion among the Judges?
If there is no majority, the Judges must state the point of law on which they differ.
What is done once the point of law is identified where Judges differ?
That specific point is then heard by one or more other Judges of the High Court.
Who makes the final decision on the point of law in case of a difference of opinion?
The point of law is decided based on the opinion of the majority of all the Judges who have heard the case, including those who initially heard it.
Can a single Judge decide a case under Section 366?
No, an appeal under Section 365 must be heard by at least two Judges as per Section 366(1).
Is the majority decision required only among the first set of Judges?
No, if there is no majority among the initial Judges, the final decision must be based on the majority opinion of all Judges who have heard the case, including additional ones.
Does Section 366 apply to all appeals before the High Court under this Act?
Section 366 applies specifically to appeals filed under Section 365 of the Income Tax Act, 2025.
Is the rehearing limited to the whole case if there is a difference of opinion?
No, the rehearing is limited only to the point of law on which the original Judges differed.
When does Section 366 come into effect?
Section 366 of the Income Tax Act, 2025 comes into effect from 1st April, 2026.
