Limited scope of Third Member proceedings: new grounds cannot be introduced under section 255(4) after the original hearing ends.

Section 255(4) confines the Tribunal's role to resolving only the specific point or points of difference referred by the Members who originally heard the appeal, in line with the majority opinion. That limited jurisdiction is distinct from the broader powers under section 254(1), where additional grounds may be considered during the original hearing. A new ground raised after the hearing was concluded cannot be introduced in section 255(4) proceedings, because those proceedings are consequential and cannot be expanded by implication in a taxing statute construed strictly. The additional ground was therefore not admissible in that forum.

---

---

Issues: Whether, in proceedings under section 255(4) of the Income-tax Act, 1961, the Tribunal could entertain an additional ground raised after the conclusion of the original hearing and not forming part of the point of difference referred to the Third Member.

Analysis: The scope of section 255(4) is confined to deciding only the point or points of difference between the Members who originally heard the appeal, according to the opinion of the majority. That jurisdiction is distinct from the wide powers under section 254(1), where additional grounds may be entertained in the course of the original hearing. The proceedings under section 255(4) are consequential and cannot be expanded to include a new ground raised after the hearing was concluded. The absence of an express prohibition does not authorise the Tribunal to read into the provision a power that the statute does not confer, particularly in a taxing statute which must be construed strictly.

Conclusion: The additional ground was not admissible in proceedings under section 255(4) and was rightly declined.

---