Sections 36 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Sections 36 to 40 deal with how the Appellate Tribunal organises its work and who may appear before it. The head of the Tribunal distributes business among Benches and may transfer cases between them. If the two Members of a Bench differ, a third Member is brought in and the majority decides. An appellant may appear in person or take the assistance of an authorised representative, and the Government may authorise presenting officers. Members and officers are deemed public servants.
This article reads the sections from the consolidated text of the Act consulted (amendments shown up to 1 August 2019). Later amendments, rules and notifications should be checked; nothing after that date is stated here.
The head of the Appellate Tribunal makes provision by notification for distribution of business among Benches (section 36) and may transfer a case between Benches (section 37). If a two-Member Bench differs, the point is referred to the head, who hears it or refers it to a third Member, and the majority of those who heard the case decides (section 38). An appellant may appear in person or take an authorised representative (section 39). The Tribunal, the Adjudicating Authority, the Director and subordinate officers are deemed public servants (section 40).
"Chairman" and "Chairperson"
Sections 36, 37, 38 and 40 print "Chairman" for the head of the Appellate Tribunal. The footnote to section 36 says the word was substituted for "Chairperson" by Act 28 of 2016, section 232 (w.e.f. 1-6-2016). Section 2(1)(g), by contrast, defines "Chairperson" as the Chairperson of the Appellate Tribunal, and section 6 uses "Chairperson" for the head of the Adjudicating Authority. Each section is quoted here as printed; the "Chairman" in these sections is the head of the Appellate Tribunal. The definition is explained in our article on section 1 and the authority terms.
If you are an appellant considering whom to appoint to present your case, legal dispute resolution support can help you plan the appeal and the representation.
Section 36: distribution of business among Benches
"Where any Benches are constituted, the Chairman may, from time to time, by notification, make provisions as to the distribution of the business of the Appellate Tribunal amongst the Benches and also provide for the matters which may be dealt with by each Bench."
| Element | As printed |
|---|---|
| Condition | Where any Benches are constituted |
| Who | The Chairman |
| How | From time to time, by notification |
| What | Distribution of business among the Benches; the matters each Bench may deal with |
No notification is in the text consulted, so the distribution cannot be stated from it. The Benches of the Adjudicating Authority are dealt with separately in section 6, explained in our article on sections 6 and 7.
Section 37: power of the Chairman to transfer cases
"On the application of any of the parties and after notice to the parties, 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 any other Bench."
There are two routes to a transfer. One is on the application of a party, after notice to the parties and after hearing such of them as the Chairman desires to hear. The other is on the Chairman's own motion, without such notice. The section does not give grounds for transfer, and this article gives none. The heading is printed "Power of to transfer cases".
Section 38: decision by majority
"If the Members of a Bench consisting of two Members differ in opinion on any point, 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 third Member of the Appellate Tribunal and such point or points shall be decided according to the opinion of the majority of the Members of the Appellate Tribunal who have heard the case, including those who first heard it."
The steps in order are these.
- A Bench of two Members differ in opinion on any point.
- They state the point or points on which they differ.
- They make a reference to the Chairman.
- The Chairman either hears the point or points himself, or refers the case for hearing on those points to a third Member of the Appellate Tribunal.
- The point or points are decided according to the opinion of the majority of the Members who have heard the case, including those who first heard it.
Printing note: the footnote at the foot of that page gives "Subs. by Act 21 of 2009, s. 11, for 'one or more of the other Members' (w.e.f. 1-6-2009)", and the same footnote number is printed beside both "Chairman" and "third Member" in this section, although the footnote text concerns the words "third Member". The text is quoted as printed.
Section 39: authorised representative and presenting officers
Sub-section (1): the appellant
"A person preferring an appeal to the Appellate Tribunal under this Act may either appear in person or take the assistance of an authorised representative of his choice to present his case before the Appellate Tribunal."
The Explanation says that, for the purposes of the sub-section, "authorised representative" has the same meaning as assigned to it under sub-section (2) of section 288 of the Income-tax Act, 1961 (43 of 1961). The reader should check the current law for the corresponding provision of the Income-tax Act, 1961, and may see our income-tax guides for the background.
The choice is the appellant's: either appear in person or take the assistance of an authorised representative "of his choice". The Act as consulted does not list the qualifications; it borrows the meaning from the Income-tax Act, 1961 as printed.
Sub-section (2): the Government side
"The Central Government or the Director may authorise one or more authorised representatives or any of its officers to act as presenting officers and every person so authorised may present the case with respect to any appeal before the Appellate Tribunal."
| Side | Provision | Who may present |
|---|---|---|
| Appellant | Section 39(1) | The appellant in person, or an authorised representative of his choice |
| Central Government or Director | Section 39(2) | One or more authorised representatives, or any of its officers, authorised as presenting officers |
Our general guide on the Appellate Tribunal under PMLA gives a wider overview.
Section 40: Members and officers to be public servants
"The Chairman, Members and other officers and employees of the Appellate Tribunal, the Adjudicating Authority, Director and the officers subordinate to him shall be deemed to be public servants within the meaning of section 21 of the Indian Penal Code (45 of 1860)."
The persons covered are the Chairman, Members and other officers and employees of the Appellate Tribunal; the Adjudicating Authority; the Director; and the officers subordinate to him. The reader should check the current penal law for the corresponding provision of the Indian Penal Code.
Where the sections fit
| Section | Subject | Related article |
|---|---|---|
| 25 and 35 | The Tribunal, its procedure and powers | Sections 25 and 35 |
| 26 | Appeals to the Tribunal | Section 26 |
| 36 to 40 | Benches, transfer, majority, representation, public servants | This article |
| 41 and 42 | Civil court bar and appeal to the High Court | Sections 41 and 42 |
Sections 27 to 34, which fall between section 26 and section 35, are omitted in the text consulted.
An illustration
The names are invented. An appeal by Vertex Holdings Pvt Ltd is before a Bench of two Members. The Members differ on whether a particular document is to be taken into account. They state the point of difference and make a reference to the Chairman, who refers it to a third Member. The point is decided according to the opinion of the majority of the Members who have heard the case, including the two who first heard it. At the hearing, the company is represented by its authorised representative, Mr Anil Soni, as section 39(1) allows, while the Director has authorised an officer to act as presenting officer under section 39(2).
Need help presenting an appeal before the Tribunal?
Who appears for you, and how a difference of opinion on the Bench is resolved, can shape an appeal. We can discuss representation and preparation with you through legal dispute resolution.
Key takeaways
- The head of the Appellate Tribunal, printed as "Chairman" in sections 36, 37, 38 and 40, distributes business among Benches by notification.
- The Chairman may transfer a case from one Bench to another, on a party's application after notice or on his own motion without notice.
- If a two-Member Bench differs, the point goes to the Chairman, who hears it or refers it to a third Member; the majority of those who heard the case decides.
- An appellant may appear in person or take an authorised representative of his choice.
- The Central Government or the Director may authorise presenting officers.
- The Tribunal's Chairman, Members and staff, the Adjudicating Authority, the Director and subordinate officers are deemed public servants.
Read next
- Sections 25 and 35: Appellate Tribunal, its procedure and powers
- Section 26: appeal to the Appellate Tribunal
- Sections 41 and 42: civil court bar and appeal to High Court
- Appellate Tribunal Under PMLA
Disclaimer: Based on the consolidated text of the Prevention of Money-laundering Act, 2002 published by the Enforcement Directorate, showing amendments up to Act 23 of 2019 (1 August 2019), and on the Department of Revenue consolidated copy of the Prevention of Money-laundering (Maintenance of Records) Rules, 2005 listing amendments up to 19 July 2024, as consulted on 2 October 2026. Later amendments, notifications, other rules and regulator directions should be checked. This article is general information, not legal advice; check the official text before acting.