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CMA Final · Direct Tax Laws and International Taxation

CBDT and Other Authorities for CMA Final Paper 15

This chapter covers who administers the Income-tax Act, 2025: the income-tax authorities, the CBDT, how authorities are controlled and given jurisdiction, and the faceless scheme. To solve questions, identify the authority, the section giving its power, and the criteria or procedure that applies.

What this chapter covers

This chapter is about the administrative machinery of direct tax. It tells you who the income-tax authorities are, how they are appointed, how the Board directs and controls them, and how jurisdiction is divided among them. It also covers the faceless model, where the taxpayer deals with a system and not with a named officer.

The chapter is short and mostly descriptive. In the Income-tax Act, 2025 the key provisions are section 238 (control of authorities), section 241 (jurisdiction), section 245 (faceless jurisdiction scheme) and section 273 (faceless assessment). Sections 242, 243 and 244 are referred to in section 245 as dealing with vesting of jurisdiction in the Assessing Officer, transfer of cases and change of incumbency.

The chapter connects to the rest of Paper 15 because every procedure later in the paper, such as assessment, reassessment, appeals and penalties, is carried out by one of these authorities. If you know who has the power and how it is exercised, case-based questions on procedure become easier to answer.

This chapter is compact, so it rewards effort more than most. The rules are specific: who may issue directions, what criteria apply, what the scheme must achieve, and which communications must be electronic. These details suit MCQs in the compulsory Section A, where one precise fact decides the answer. The same details also support a short descriptive answer on faceless assessment. Students who skip the chapter as theory lose easy marks that need only careful reading and a few hours of revision.

CBDT and Other Authorities: topics in the order to study them

  1. 1Income-tax Authorities and Their AppointmentStart here to learn the ranks of authorities, since every later rule refers to them.
  2. 2Central Board of Direct Taxes (CBDT) Structure and PowersThe Board gives the directions and notifications that all other topics depend on, so learn its role next.
  3. 3Control and Jurisdiction of Income-tax AuthoritiesThis builds on the Board's powers: sections 238 and 241 on subordination, criteria and concurrent jurisdiction.
  4. 4Faceless Jurisdiction of Income-tax AuthoritiesStudy it last because it modifies the normal jurisdiction rules through sections 245 and 273.

How to prepare CBDT and Other Authorities

Treat this as a rules chapter. Read the sections closely, then test yourself on exact wording and conditions.

  1. Read the ranks of income-tax authorities and the Board's role, and write a one-page chart of who is senior to whom.
  2. Study section 238: the Board may notify that one authority is subordinate to another. Note that this is done by notification.
  3. Learn section 241 in parts: Board directions, higher authority acting for a lower one, the four criteria (territorial area, persons or classes of persons, incomes or classes of income, cases or classes of cases), and concurrent jurisdiction.
  4. Learn section 245 as a scheme: what it may cover, the three aims (eliminating interface, optimising resources, team-based working), and the need to lay notifications before Parliament.
  5. Learn section 273 through its units: National Faceless Assessment Centre, assessment, verification, technical and review units, with electronic communication through the Centre.
  6. Practise short case questions such as 'Who may exercise the Assessing Officer's powers?' and answer with the authority, the section and the condition.
  7. Revise with a one-page sheet of lists and conditions, and attempt a few MCQs at the end of each study session.

Common mistakes in CBDT and Other Authorities

  • Using old Income-tax Act, 1961 section numbers.

    Fix: Use the Income-tax Act, 2025 numbering: sections 238, 241, 245 and 273 for this chapter.

  • Saying the Board itself makes the faceless scheme.

    Fix: Under section 245, the Central Government makes the scheme by notification. The Board specifies the cases and sets up units under section 273.

  • Listing only some of the four criteria for directions.

    Fix: Remember all four: territorial area, persons or classes of persons, incomes or classes of income, cases or classes of cases.

  • Confusing the units in faceless assessment.

    Fix: Link each unit to its job: assessment makes the assessment, verification does enquiry, technical gives expert help, review checks proposed variations.

  • Writing that faceless means no human involvement at all.

    Fix: The scheme removes interface only to the extent technologically feasible, and the units are staffed by authorities as section 273 provides.

  • Giving vague answers without a section or condition in case questions.

    Fix: Name the authority, cite the section and state the condition, such as Board direction or notification.

Last-day revision: CBDT and Other Authorities

  • Under section 238, the Board may notify that one income-tax authority is subordinate to another.
  • Under section 241, authorities act as per Board directions.
  • A higher-ranking authority may exercise the powers of a lower one if the Board so directs.
  • Board directions may use four criteria: territorial area, persons or classes of persons, incomes or classes of income, cases or classes of cases.
  • Section 241(5)(b) lets specified authorities direct that Assessing Officer powers be exercised by an Additional or Joint Commissioner or Director.
  • Two or more Assessing Officers may exercise powers concurrently; the lower-ranking one follows directions of the higher.
  • Section 245 lets the Central Government make a faceless jurisdiction scheme by notification.
  • The scheme aims at efficiency, transparency and accountability by eliminating interface to the extent technologically feasible.
  • Section 245 notifications must be laid before each House of Parliament.
  • Section 273 requires faceless assessment for the cases the Board specifies.
  • The National Faceless Assessment Centre routes communications, and these are exchanged exclusively by electronic mode.
  • Faceless assessment units are assessment, verification, technical and review units.

CBDT and Other Authorities practice questions

CBDT and Other Authorities in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

CBDT and Other Authorities: frequently asked questions

Which sections matter most in this chapter?

Sections 238, 241, 245 and 273 of the Income-tax Act, 2025 carry the core rules on control, jurisdiction and faceless working. Learn their conditions precisely.

Is this chapter useful for MCQs?

Yes. Section A has 15 MCQs of 2 marks each, and the rules here are precise facts that suit objective questions. They can also support short descriptive answers.

What is the difference between jurisdiction and control of authorities?

Control concerns which authority is subordinate to which, as in section 238. Jurisdiction concerns which authority exercises powers over what area, persons, incomes or cases, as in section 241.

How is faceless assessment different from faceless jurisdiction?

Faceless jurisdiction in section 245 is a government scheme for exercising jurisdiction. Faceless assessment in section 273 is the assessment carried out electronically through the National Faceless Assessment Centre and its units.