Income Tax Act, 2025
Section 7: Ins. by Act 11 of 1987, s. 59 (w.e.f. 11987).
7. Ins. by Act 11 of 1987, s. 59 (w.e.f. 11987).
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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.
1[(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 1[and the Special Bench shall sit at a place to be fixed by the Chairman].]
2[245BB. Vice-Chairman to act as Chairman or to discharge his functions in certain
circumstances.—(1) In the event of the occurrence of any vacancy in the office of the Chairman by
reason of his death, resignation or otherwise, the Vice-Chairman or, as the case may be, such one of the
Vice-Chairmen as the Central Government may, by notification in the Official Gazette, authorise in this
behalf, shall act as the Chairman until the date on which a new Chairman, appointed in accordance with
the provisions of this Chapter to fill such vacancy, enters upon his office.
(2) When the Chairman is unable to discharge his functions owing to absence, illness or any other
cause, the Vice-Chairman or, as the case may be, such one of the Vice-Chairmen as the Central
Government may, by notification in the Official Gazette, authorise in this behalf, shall discharge the
functions of the Chairman until the date on which the Chairman resumes his duties.]
2[245BC. Power of Chairman to transfer cases from one Bench to another.— On the application
of the assessee or the 3[ 4[Principal Chief Commissioner or Chief Commissioner] or 5[Principal
Commissioner or Commissioner]]and after notice to them, and after hearing such of them as he may
desire to be heard, or on his own motion without such notice, the Chairman may transfer any case
pending before one Bench, for disposal, to another Bench.]
2[245BD. Decision to be by majority.— If the Members of a Bench differ in opinion on any point,
the point shall be decided according to the opinion of the majority, if there is a majority, but if the
Members are equally divided, they shall state the point or points on which they differ, and make a
reference to the Chairman who shall either hear the point or points himself or refer the case for hearing on
such point or points by one or more of the other Members of the Settlement Commission and such point
or points shall be decided according to the opinion of the majority of the Members of the Settlement
Commission who have heard the case, including those who first heard it.]
245C. Application for settlement of cases.—6[(1) An assessee may, at any stage of a case relating to
him, make an application in such form and in such manner as may be prescribed, and containing a full
and true disclosure of his income which has not been disclosed before the 7[Assessing Officer], the
manner in which such income has been derived, the additional amount of income-tax payable on such
income and such other particulars as may be prescribed, to the Settlement Commission to have the case
settled and any such application shall be disposed of in the manner hereinafter provided:
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.]
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 1[and the Special Bench shall sit at a place to be fixed by the Chairman].]
2[245BB. Vice-Chairman to act as Chairman or to discharge his functions in certain
circumstances.—
In the event of the occurrence of any vacancy in the office of the Chairman by
reason of his death, resignation or otherwise, the Vice-Chairman or, as the case may be, such one of the
Vice-Chairmen as the Central Government may, by notification in the Official Gazette, authorise in this
behalf, shall act as the Chairman until the date on which a new Chairman, appointed in accordance with
the provisions of this Chapter to fill such vacancy, enters upon his office.
When the Chairman is unable to discharge his functions owing to absence, illness or any other
cause, the Vice-Chairman or, as the case may be, such one of the Vice-Chairmen as the Central
Government may, by notification in the Official Gazette, authorise in this behalf, shall discharge the
functions of the Chairman until the date on which the Chairman resumes his duties.]
2[245BC. Power of Chairman to transfer cases from one Bench to another.— On the application
of the assessee or the 3[ 4[Principal Chief Commissioner or Chief Commissioner] or 5[Principal
Commissioner or Commissioner]]and after notice to them, and after hearing such of them as he may
desire to be heard, or on his own motion without such notice, the Chairman may transfer any case
pending before one Bench, for disposal, to another Bench.]
2[245BD. Decision to be by majority.— If the Members of a Bench differ in opinion on any point,
the point shall be decided according to the opinion of the majority, if there is a majority, but if the
Members are equally divided, they shall state the point or points on which they differ, and make a
reference to the Chairman who shall either hear the point or points himself or refer the case for hearing on
such point or points by one or more of the other Members of the Settlement Commission and such point
or points shall be decided according to the opinion of the majority of the Members of the Settlement
Commission who have heard the case, including those who first heard it.]
245C. Application for settlement of cases.—6[
An assessee may, at any stage of a case relating to
him, make an application in such form and in such manner as may be prescribed, and containing a full
and true disclosure of his income which has not been disclosed before the 7[Assessing Officer], the
manner in which such income has been derived, the additional amount of income-tax payable on such
income and such other particulars as may be prescribed, to the Settlement Commission to have the case
settled and any such application shall be disposed of in the manner hereinafter provided: