Section 245BD of ITA, 1961 : Section 245Bd: Decision To Be By Majority

Explanation using Example

Imagine a scenario where a taxpayer has applied to the Income-tax Settlement Commission for settlement of their tax liabilities. The case is heard by a Bench consisting of three Members. During the deliberations, Member A believes that the taxpayer should be granted certain reliefs based on the presented facts, while Member B disagrees, citing different interpretations of the tax laws. Member C is of the opinion that only partial relief should be granted.

As the Members cannot reach a unanimous decision, they vote on the matter. Member A and Member C form the majority by agreeing on partial relief, thus the taxpayer is granted partial relief in accordance with the majority's opinion. If Member A and Member B were to be evenly split, with no majority opinion, they would then refer the matter to the Chairman of the Settlement Commission. The Chairman could decide the matter personally or appoint another Member to join the deliberation. The final decision would then be made based on the majority view of this expanded panel, including the original Members who heard the case.