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

Meera, a Deputy Commissioner in Pune, is asked by the Principal Commissioner to record the statement of a witness during an assessment proceeding of Kavya Pharma Ltd. A director of Kavya Pharma gives deliberately false evidence in that proceeding. Under the Income-tax Act, 2025, how is the proceeding treated?

The proceeding is deemed a judicial proceeding, so false evidence can attract the relevant penal provisions. The 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 Sanhita.

  1. AIt is deemed a judicial proceeding, 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 SanhitaCorrect
  2. BIt is an administrative proceeding, so false evidence has no criminal consequence
  3. CIt is a judicial proceeding, and the authority is deemed a Civil Court for all purposes of the Bharatiya Nagarik Suraksha Sanhita, 2023
  4. DIt is a judicial proceeding only if the Board has notified it as such

Explanation

Section 257(1) deems any proceeding before an income-tax authority a judicial proceeding, including for section 233 of the Bharatiya Nyaya Sanhita, 2023. Section 257(2) makes the authority a Civil Court for section 215 of the BNSS but not for its Chapter XXVIII, so the 'all purposes' option is wrong.

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