Rules 2026

Rule 131 of the Income-tax Rules, 2026

Rule 131 — Procedure before Approving Panel.

Where this rule sits

What this rule does

Sub-rule (1) tells the Chairperson of the Approving Panel what to do on receipt of a reference under rule 129. He shall cause the reference to be circulated among the other members within seven days from the date of receipt, and shall cause a notice to be issued to both the Assessing Officer and the assessee affording a reasonable opportunity of being heard, specifying the date and place of hearing. Sub-rule (2) provides that the meetings of the Approving Panel shall take place at such place as the Panel may decide.

Why it is there

A reference to the Approving Panel carries serious consequences for the assessee, so the rule fixes the two things that make the proceeding fair and workable: that every member sees the reference quickly, and that both sides are heard on notice. Beyond that it leaves the Panel to arrange its own sittings.

Who it applies to

The Chairperson of the Approving Panel
The other members of the Approving Panel
The Assessing Officer whose reference is before the Panel
The assessee to whom the reference relates

The figures, and what each one turns on

Read the condition in the same row. A figure quoted without it is a wrong answer with a citation attached.

What	Figure	The condition on it	Where
Time for circulating the reference among the other members	Within seven days from the date of receipt of the reference	Reference received under rule 129	Rule 131(1)(a)

What this means in practice

The hearing right is on both sides: sub-rule (1)(b) requires the notice to go to the Assessing Officer as well as the assessee, and it must specify the date and place, so a hearing arranged without that notice is not what the rule contemplates. The seven-day period runs on the Chairperson's internal circulation, not on the notice to the parties, and the rule attaches no consequence to its being exceeded. Where the Panel sits is left open by sub-rule (2), and is for the Panel itself to decide.

Where you meet this rule

An assessee meets it as the notice of hearing from the Approving Panel that follows a reference made by the Assessing Officer under rule 129.

The words themselves

the reference to be circulated among the other members within seven days from the date of receipt of such reference

Rule 131(1)(a), Income-tax Rules, 2026.

a notice to be issued to both the Assessing Officer and the assessee, affording a reasonable opportunity of being heard, specifying therein the date and place of hearing

Rule 131(1)(b), Income-tax Rules, 2026.

What people get wrong

Assuming only the assessee is heard. Sub-rule (1)(b) requires notice to both the Assessing Officer and the assessee.
Treating the seven days as the time for issuing the hearing notice. It applies to circulation of the reference among the other members under clause (a).
Expecting the hearing at a fixed venue. Sub-rule (2) leaves the place of the Panel's meetings to the Panel.

What this page does not tell you. It does not reproduce the rule. Everything above was written from the rule’s own text as the Income Tax Department publishes it — the text is here. A rule is subordinate legislation: it prescribes the method, the form or the period, and it cannot enlarge the charge the section imposes. Where a figure matters, read the sub-rule it comes from.