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CA Final · Direct Tax Laws & International Taxation · Income Tax Authorities

Case: During a hearing, Ms. Rao argues that the Income-tax Officer's inquiry is merely administrative and not a judicial proceeding. Under the Income-tax Act, 2025, what is the position of any proceeding before an income-tax authority under the Act?

Any proceeding under the Act before an income-tax authority is deemed a judicial proceeding for the specified purposes, including section 233 of the Bharatiya Nyaya Sanhita, 2023. Section 257 applies this regardless of the authority's rank, so Ms. Rao's contention fails.

  1. AIt is deemed a judicial proceeding for the specified sections, including section 233 of the Bharatiya Nyaya Sanhita, 2023Correct
  2. BIt is an administrative proceeding unless the Tribunal is seized
  3. CIt is a judicial proceeding only when the authority is a Commissioner or above
  4. DIt is a judicial proceeding for all purposes of Chapter XXVIII of the Bharatiya Nagarik Suraksha Sanhita, 2023

Explanation

Section 257(1) deems any proceeding under the Act before an income-tax authority to be a judicial proceeding for the specified purposes, including section 233 of the Bharatiya Nyaya Sanhita, 2023. The deeming applies irrespective of rank. Section 257(2) excludes Chapter XXVIII of the BNSS from the civil court deeming.

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