Section 245BA — Jurisdiction and Powers of Settlement Commission
Case Laws & Commentary · Income-tax Act, 1961 (as amended by the Finance Act, 2026) · bharattax.co Treatise
Provision: Provides that the jurisdiction, powers and authority of the Commission are exercisable by Benches; constitution of Benches by the Chairman; the Chairman's special Bench; and the place of sitting.
Heading: Jurisdiction and powers of Settlement Commission.
Finance Act, 2026: Not amended.
Authorities digested: 2 (candour rule — a Bench-organisation provision).
A. SECTION COMMENTARY
1. Bench structure
Section 245BA distributes the Commission's jurisdiction among Benches. Ordinarily a Bench comprises three members presided over by the Chairman or a Vice-Chairman; the Chairman may constitute a Special Bench and may authorise a Vice-Chairman or Member of one Bench to act for another. The provision is administrative — it organises how the body sits, not what it may decide (that is in sections 245D and 245F).
2. Interaction with the majority and transfer rules
Section 245BA is read with section 245BC (transfer of cases between Benches by the Chairman) and section 245BD (decision by majority where members differ). Together they form the internal procedural code of the Commission. Under the Interim Board regime the analogous function is discharged by the three-member Board deciding by majority (section 245AA(3)).
3. Candour note
No reported decision turning on the merits of section 245BA's Bench-constitution rules has been traced. The provision is structural; the governing authorities on the Commission's powers proper are digested under sections 245D and 245F.
B. STATUTORY POSITION (verbatim text)
The text of the section, as it stands in the Act (FA-2025 base), is set out below.
245BA.
(1) Subject to the other provisions of this Chapter, the jurisdiction, powers and authority of the Settlement Commission may be exercised by Benches thereof.
(2) Subject to the other provisions of this section, a Bench shall be presided over by the Chairman or a Vice-Chairman and shall consist of two other Members.
(3) The Bench for which the Chairman is the Presiding Officer shall be the principal Bench and the other Benches shall be known as additional Benches.
(4) Notwithstanding anything contained in sub-sections
(1) and (2), the Chairman may authorise the Vice-Chairman or other Member appointed to one Bench to discharge also the functions of the Vice-Chairman or, as the case may be, other Member of another Bench.
(5) Notwithstanding anything contained in the foregoing provisions of this section, and subject to any rules that may be made in this behalf, when one of the persons constituting a Bench (whether such person be the Presiding Officer or other Member of the Bench) is unable to discharge his functions owing to absence, illness or any other cause or in the event of the occurrence of any vacancy either in the office of the Presiding Officer or in the office of one or the other Members of the Bench, the remaining two persons may function as the Bench and if the Presiding Officer of the Bench is not one of the remaining two persons, the senior among the remaining persons shall act as the Presiding Officer of the Bench :
Provided that if at any stage of the hearing of any such case or matter, it appears to the Presiding Officer that the case or matter is of such a nature that it ought to be heard of by a Bench consisting of three Members, the case or matter may be referred by the Presiding Officer of such Bench to the Chairman for transfer to such Bench as the Chairman may deem fit.
(5A) Notwithstanding anything contained in the foregoing provisions of this section, the Chairman may, for the disposal of any particular case, constitute a Special Bench consisting of more than three Members.
(6) Subject to the other provisions of this Chapter, the places at which the principal Bench and the additional Benches shall ordinarily sit shall be such as the Central Government may, by notification in the Official Gazette, specify and the Special Bench shall sit at a place to be fixed by the Chairman.
Held / relevance: Settled the scope of the Commission's powers once a Bench is seized of a case; the Bench's jurisdiction is co-extensive with that of an income-tax authority under section 245F. Full digest under sections 245D and 245F.
Candour — Bench constitution
Position: Section 245BA's internal Bench-allocation rules have not been the subject of a traced reported decision on the merits. Stated candidly.
Compiled for the bharattax.co Treatise on the Income-tax Act, 1961 (as amended by the Finance Act, 2026). Statutory text is reproduced from the Income-tax Act, 1961 (text as printed in the local Act, base text amended up to the Finance Act, 2025), with the publisher's footnote apparatus and amendment-marker brackets removed; three asterisks (***) denote words or a provision omitted by amendment and retained only to mark the omission. The Income-tax Settlement Commission ceased to operate for applications made on or after 1 February 2021 (Finance Act, 2021); pending applications stand transferred to the Interim Board for Settlement (section 245AA). Finance Act, 2026 makes no change to any section of Chapter XIX-A. Citations are stated as reported; orders of the Tribunal and High Courts are flagged as such. Where a section has not been judicially construed, that is stated candidly and the nearest governing authority is given. This material is for professional reference and is not legal advice.
CHAPTER XIX-A — SETTLEMENT OF CASES
Section 245BA — Jurisdiction and Powers of Settlement Commission
Case Laws & Commentary · Income-tax Act, 1961 (as amended by the Finance Act, 2026) · bharattax.co Treatise
Provision: Provides that the jurisdiction, powers and authority of the Commission are exercisable by Benches; constitution of Benches by the Chairman; the Chairman's special Bench; and the place of sitting.
Heading: Jurisdiction and powers of Settlement Commission.
Finance Act, 2026: Not amended.
Authorities digested: 2 (candour rule — a Bench-organisation provision).
A. SECTION COMMENTARY
1. Bench structure
Section 245BA distributes the Commission's jurisdiction among Benches. Ordinarily a Bench comprises three members presided over by the Chairman or a Vice-Chairman; the Chairman may constitute a Special Bench and may authorise a Vice-Chairman or Member of one Bench to act for another. The provision is administrative — it organises how the body sits, not what it may decide (that is in sections 245D and 245F).
2. Interaction with the majority and transfer rules
Section 245BA is read with section 245BC (transfer of cases between Benches by the Chairman) and section 245BD (decision by majority where members differ). Together they form the internal procedural code of the Commission. Under the Interim Board regime the analogous function is discharged by the three-member Board deciding by majority (section 245AA(3)).
3. Candour note
No reported decision turning on the merits of section 245BA's Bench-constitution rules has been traced. The provision is structural; the governing authorities on the Commission's powers proper are digested under sections 245D and 245F.
B. STATUTORY POSITION (verbatim text)
The text of the section, as it stands in the Act (FA-2025 base), is set out below.
245BA.
(1) Subject to the other provisions of this Chapter, the jurisdiction, powers and authority of the Settlement Commission may be exercised by Benches thereof.
(2) Subject to the other provisions of this section, a Bench shall be presided over by the Chairman or a Vice-Chairman and shall consist of two other Members.
(3) The Bench for which the Chairman is the Presiding Officer shall be the principal Bench and the other Benches shall be known as additional Benches.
(4) Notwithstanding anything contained in sub-sections
(1) and (2), the Chairman may authorise the Vice-Chairman or other Member appointed to one Bench to discharge also the functions of the Vice-Chairman or, as the case may be, other Member of another Bench.
(5) Notwithstanding anything contained in the foregoing provisions of this section, and subject to any rules that may be made in this behalf, when one of the persons constituting a Bench (whether such person be the Presiding Officer or other Member of the Bench) is unable to discharge his functions owing to absence, illness or any other cause or in the event of the occurrence of any vacancy either in the office of the Presiding Officer or in the office of one or the other Members of the Bench, the remaining two persons may function as the Bench and if the Presiding Officer of the Bench is not one of the remaining two persons, the senior among the remaining persons shall act as the Presiding Officer of the Bench :
Provided that if at any stage of the hearing of any such case or matter, it appears to the Presiding Officer that the case or matter is of such a nature that it ought to be heard of by a Bench consisting of three Members, the case or matter may be referred by the Presiding Officer of such Bench to the Chairman for transfer to such Bench as the Chairman may deem fit.
(5A) Notwithstanding anything contained in the foregoing provisions of this section, the Chairman may, for the disposal of any particular case, constitute a Special Bench consisting of more than three Members.
(6) Subject to the other provisions of this Chapter, the places at which the principal Bench and the additional Benches shall ordinarily sit shall be such as the Central Government may, by notification in the Official Gazette, specify and the Special Bench shall sit at a place to be fixed by the Chairman.
C. AUTHORITIES
Structural Bench-organisation provision; cross-referenced authorities only.
Cluster 1 — Cross-reference
Brij Lal v. CIT, (2010) 328 ITR 477 (SC) (Constitution Bench)
Held / relevance: Settled the scope of the Commission's powers once a Bench is seized of a case; the Bench's jurisdiction is co-extensive with that of an income-tax authority under section 245F. Full digest under sections 245D and 245F.
Candour — Bench constitution
Position: Section 245BA's internal Bench-allocation rules have not been the subject of a traced reported decision on the merits. Stated candidly.
Compiled for the bharattax.co Treatise on the Income-tax Act, 1961 (as amended by the Finance Act, 2026). Statutory text is reproduced from the Income-tax Act, 1961 (text as printed in the local Act, base text amended up to the Finance Act, 2025), with the publisher's footnote apparatus and amendment-marker brackets removed; three asterisks (***) denote words or a provision omitted by amendment and retained only to mark the omission. The Income-tax Settlement Commission ceased to operate for applications made on or after 1 February 2021 (Finance Act, 2021); pending applications stand transferred to the Interim Board for Settlement (section 245AA). Finance Act, 2026 makes no change to any section of Chapter XIX-A. Citations are stated as reported; orders of the Tribunal and High Courts are flagged as such. Where a section has not been judicially construed, that is stated candidly and the nearest governing authority is given. This material is for professional reference and is not legal advice.