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

Mehta & Co., a firm in Pune, is assessed by an Assessing Officer. The Board issues a direction under section 241 of the Income-tax Act, 2025 on how powers are to be distributed among authorities. Which set of criteria may the Board or an authorised authority have regard to in issuing such directions?

The Board may have regard to territorial area, persons or classes of persons, incomes or classes of income, and cases or classes of cases. Section 241(4) of the Income-tax Act, 2025 lists these four criteria, and any one or more may be used when issuing directions or orders.

  1. ATerritorial area, persons or classes of persons, incomes or classes of income, cases or classes of casesCorrect
  2. BOnly territorial area and the amount of income
  3. CTurnover of the assessee and the number of employees
  4. DOnly the nature of business and the residential status of the assessee

Explanation

Section 241(4) permits regard to one or more of four criteria: territorial area, persons or classes of persons, incomes or classes of income, and cases or classes of cases. The other options add criteria such as turnover or employee count, or leave out some listed ones, so they do not match the text.

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