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

During assessment proceedings of Mehta Exports Ltd., the Assessing Officer summons a director to give evidence. Under section 257 of the Income-tax Act, 2025, which statement is correct about such proceedings?

Proceedings before an income-tax authority are deemed judicial proceedings for the purposes specified in section 257, and the authority is deemed a Civil Court for section 215 of the Bharatiya Nagarik Suraksha Sanhita, 2023, but not for Chapter XXVIII of that Sanhita.

  1. AThey are deemed judicial proceedings for the specified provisions, and every income-tax authority is deemed a Civil Court for section 215 of the Bharatiya Nagarik Suraksha Sanhita, 2023 but not for Chapter XXVIII of that SanhitaCorrect
  2. BThey are administrative proceedings only, and the authority is not treated as a Civil Court for any purpose
  3. CThe authority is deemed a Civil Court for all purposes of the Bharatiya Nagarik Suraksha Sanhita, 2023, including Chapter XXVIII
  4. DThe proceedings are judicial only if the assessee requests so in writing

Explanation

Section 257(1) deems proceedings before an income-tax authority to be judicial proceedings for the stated provisions, and 257(2) deems the authority a Civil Court for section 215 of the BNSS but not for Chapter XXVIII. The option extending it to all purposes ignores this exclusion.

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