Accountant Member's Revised Order Overturned for Exceeding Authority

The High Court held that the Accountant Member's revised order, changing his initial opinion to align with the Judicial Member, was invalid as he was functus officio after passing the initial order. The court directed the matter back to the Tribunal for resolution according to section 255 of the Income-tax Act, emphasizing the importance of following prescribed procedures for resolving disagreements among tribunal members. The appeals were allowed as specified, underscoring the necessity of adhering to statutory provisions for a fair resolution of disputes within the Income-tax Appellate Tribunal.

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Issues:
1. Interpretation of section 255 of the Income-tax Act, 1961 regarding disagreement between members of the Income-tax Appellate Tribunal.

Analysis:
The case involved appeals for the assessment years 1993-94 and 1994-95 where the Accountant Member and the Judicial Member of the Income-tax Appellate Tribunal expressed differing opinions. The Judicial Member partially allowed the appeals for the Revenue, leading to a disagreement between the two members. The procedure under section 255(4) of the Income-tax Act, 1961, which requires referral to the President for a resolution when members differ in opinion, was not followed in this case.

Subsequently, the Accountant Member changed his initial opinion to align with the Judicial Member's findings, which was deemed improper. The Accountant Member was considered functus officio after passing the initial order, and the statutory procedure for resolving disagreements was not adhered to. As per section 255(4) of the Act, in case of a difference in opinion, the points of disagreement should be stated, and the matter referred to the President for appropriate action.

Consequently, the High Court held that the Accountant Member's revised order was invalid and set it aside. With conflicting orders from the two members, the court directed the matter to be sent back to the Tribunal for a resolution in accordance with the provisions of section 255 of the Income-tax Act. The appeals were allowed to the extent specified, emphasizing the importance of following the prescribed procedure for resolving disagreements among tribunal members.

This judgment clarifies the procedural requirements under section 255 of the Income-tax Act, emphasizing the need for proper adherence to statutory provisions when members of the Income-tax Appellate Tribunal disagree on a point. The decision highlights the significance of following the prescribed process for resolving differences of opinion to ensure a fair and lawful resolution of appeals before the Tribunal.

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