CHAPTER XX — APPEALS AND REVISION | B.—Appeals to the Appellate Tribunal
CHAPTER XX — APPEALS AND REVISION | B.—Appeals to the Appellate Tribunal
Section 252 — Appellate Tribunal
Case Laws & Commentary — Income-tax Act, 1961 (as amended by the Finance Act, 2026) — bharattax.co Treatise
Status: Live. Constitutes the Income-tax Appellate Tribunal (ITAT), the apex fact-finding body, with judicial and accountant members, a President, and Vice-Presidents.
Finance Act, 2026: No amendment. The Finance Act, 2026 does not touch section 252.
Nature / mechanism: Constitution and composition of the ITAT; appointment of the President and Vice-Presidents; the senior-most/President's powers of superintendence.
Litigation profile: Limited direct litigation — chiefly on the Tribunal's administrative independence and the President's control over members and benches.
The Central Government constitutes the Appellate Tribunal of as many judicial and accountant members as it thinks fit. A judicial member is drawn from the judicial service/Bar; an accountant member from the senior ranks of the Department or the accountancy profession. The President (and Vice-Presidents) head the institution, which functions under the Ministry of Law, deliberately insulated from the revenue administration to secure its independence as the final fact-finding authority.
Administrative independence
The Tribunal's standing as an independent quasi-judicial body has been affirmed by the Supreme Court, which has upheld the President's administrative powers (including transfer of members and bench constitution) while emphasising that the institution must remain free of executive influence in its judicial functioning.
B. STATUTORY TEXT (verbatim)
Reproduced verbatim from the Income-tax Act, 1961 (as amended up to the Finance Act, 2025). Inline numerals in square brackets are the bare Act's amendment-footnote markers.
Appellate Tribunal.
252. (1) The Central Government shall constitute an Appellate Tribunal consisting of as many judicial and accountant members as it thinks fit to exercise the powers and discharge the functions conferred on the Appellate Tribunal by this Act.
(2) A judicial member shall be a person who has for at least ten years held a judicial office in the territory of India or who has been a member of the Indian Legal Service and has held a post in Grade II of that Service or any equivalent or higher post for at least three years or who has been an advocate for at least ten years.
Explanation.—For the purposes of this sub-section,—
(i) in computing the period during which a person has held judicial office in the territory of India, there shall be included any period, after he has held any judicial office, during which the person has been an advocate or has held the office of a member of a Tribunal or any post, under the Union or a State, requiring special knowledge of law;
(ii) in computing the period during which a person has been an advocate, there shall be included any period during which the person has held judicial office or the office of a member of a Tribunal or any post, under the Union or a State, requiring special knowledge of law after he became an advocate.
(2A) An accountant member shall be a person who has for at least ten years been in the practice of accountancy as a chartered accountant under the Chartered Accountants Act, 1949 (38 of 1949), or as a registered accountant under any law formerly in force or partly as a registered accountant and partly as a chartered accountant, or who has been a member of the Indian Income-tax Service, Group A and has held the post of Additional Commissioner of Income-tax or any equivalent or higher post for at least three years.
(3) The Central Government shall appoint—
(a) a person who is a sitting or retired Judge of a High Court and who has completed not less than seven years of service as a Judge in a High Court; or
(b) one of the Vice-Presidents of the Appellate Tribunal, to be the President thereof.
(4) The Central Government may appoint one or more members of the Appellate Tribunal to be the Vice-President or, as the case may be, Vice-Presidents thereof.
(4A) [***]
(5) The Vice-President shall exercise such of the powers and perform such of the functions of the President as may be delegated to him by the President by a general or special order in writing.
C. AUTHORITIES
The principal authority concerns the Tribunal's administrative independence and the President's powers.
Cluster 1 — Independence and administrative control of the ITAT
Ajay Gandhi v. B. Singh, (2004) 265 ITR 451 (SC)
Holding The ITAT is an independent quasi-judicial authority; the President has administrative control, including the power to transfer members and constitute benches, to be exercised to further the institution's efficient and independent functioning.
Relevance The leading statement on the Tribunal's character and the President's administrative powers under sections 252/255.
Union of India v. Paras Laminates (P) Ltd., (1990) 186 ITR 722 (SC)
Holding A Tribunal has incidental and ancillary powers necessary to discharge its functions effectively, including the President's power to constitute a larger bench to resolve conflict.
Relevance Supports the Tribunal's institutional powers flowing from its constitution under section 252.
CHAPTER XX — APPEALS AND REVISION | B.—Appeals to the Appellate Tribunal
Section 252 — Appellate Tribunal
Case Laws & Commentary — Income-tax Act, 1961 (as amended by the Finance Act, 2026) — bharattax.co Treatise
Status: Live. Constitutes the Income-tax Appellate Tribunal (ITAT), the apex fact-finding body, with judicial and accountant members, a President, and Vice-Presidents.
Finance Act, 2026: No amendment. The Finance Act, 2026 does not touch section 252.
Nature / mechanism: Constitution and composition of the ITAT; appointment of the President and Vice-Presidents; the senior-most/President's powers of superintendence.
Litigation profile: Limited direct litigation — chiefly on the Tribunal's administrative independence and the President's control over members and benches.
A. COMMENTARY
The ITAT: a creature of section 252
The Central Government constitutes the Appellate Tribunal of as many judicial and accountant members as it thinks fit. A judicial member is drawn from the judicial service/Bar; an accountant member from the senior ranks of the Department or the accountancy profession. The President (and Vice-Presidents) head the institution, which functions under the Ministry of Law, deliberately insulated from the revenue administration to secure its independence as the final fact-finding authority.
Administrative independence
The Tribunal's standing as an independent quasi-judicial body has been affirmed by the Supreme Court, which has upheld the President's administrative powers (including transfer of members and bench constitution) while emphasising that the institution must remain free of executive influence in its judicial functioning.
B. STATUTORY TEXT (verbatim)
Reproduced verbatim from the Income-tax Act, 1961 (as amended up to the Finance Act, 2025). Inline numerals in square brackets are the bare Act's amendment-footnote markers.
Appellate Tribunal.
252. (1) The Central Government shall constitute an Appellate Tribunal consisting of as many judicial and accountant members as it thinks fit to exercise the powers and discharge the functions conferred on the Appellate Tribunal by this Act.
(2) A judicial member shall be a person who has for at least ten years held a judicial office in the territory of India or who has been a member of the Indian Legal Service and has held a post in Grade II of that Service or any equivalent or higher post for at least three years or who has been an advocate for at least ten years.
Explanation.—For the purposes of this sub-section,—
(i) in computing the period during which a person has held judicial office in the territory of India, there shall be included any period, after he has held any judicial office, during which the person has been an advocate or has held the office of a member of a Tribunal or any post, under the Union or a State, requiring special knowledge of law;
(ii) in computing the period during which a person has been an advocate, there shall be included any period during which the person has held judicial office or the office of a member of a Tribunal or any post, under the Union or a State, requiring special knowledge of law after he became an advocate.
(2A) An accountant member shall be a person who has for at least ten years been in the practice of accountancy as a chartered accountant under the Chartered Accountants Act, 1949 (38 of 1949), or as a registered accountant under any law formerly in force or partly as a registered accountant and partly as a chartered accountant, or who has been a member of the Indian Income-tax Service, Group A and has held the post of Additional Commissioner of Income-tax or any equivalent or higher post for at least three years.
(3) The Central Government shall appoint—
(a) a person who is a sitting or retired Judge of a High Court and who has completed not less than seven years of service as a Judge in a High Court; or
(b) one of the Vice-Presidents of the Appellate Tribunal, to be the President thereof.
(4) The Central Government may appoint one or more members of the Appellate Tribunal to be the Vice-President or, as the case may be, Vice-Presidents thereof.
(4A) [***]
(5) The Vice-President shall exercise such of the powers and perform such of the functions of the President as may be delegated to him by the President by a general or special order in writing.
C. AUTHORITIES
The principal authority concerns the Tribunal's administrative independence and the President's powers.
Cluster 1 — Independence and administrative control of the ITAT
Ajay Gandhi v. B. Singh, (2004) 265 ITR 451 (SC)
Holding The ITAT is an independent quasi-judicial authority; the President has administrative control, including the power to transfer members and constitute benches, to be exercised to further the institution's efficient and independent functioning.
Relevance The leading statement on the Tribunal's character and the President's administrative powers under sections 252/255.
Union of India v. Paras Laminates (P) Ltd., (1990) 186 ITR 722 (SC)
Holding A Tribunal has incidental and ancillary powers necessary to discharge its functions effectively, including the President's power to constitute a larger bench to resolve conflict.
Relevance Supports the Tribunal's institutional powers flowing from its constitution under section 252.