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CA Final · Direct Tax Laws & International Taxation · Provisions to Counteract Unethical Tax Practices

Mr. Rao applies in the prescribed form to the Principal Commissioner of Income-tax for information about another assessee, Kaveri Traders, held by the department. Under section 258(2) of the Income-tax Act, 2025, which statement is correct?

The Principal Commissioner may furnish the information on an application in the prescribed form if satisfied that doing so is in the public interest. His decision on this is final and cannot be called in question in any court of law. There is no automatic right to the information.

  1. AThe Principal Commissioner may furnish it on being satisfied that it is in the public interest, and his decision is final and cannot be questioned in any court of lawCorrect
  2. BThe Principal Commissioner must furnish it because any person can claim such information as of right
  3. CThe decision of the Principal Commissioner can be challenged in a civil court
  4. DOnly the Board, and not a Commissioner, can furnish information to a private person

Explanation

Section 258(2) empowers the Principal Chief Commissioner, Chief Commissioner, Principal Commissioner or Commissioner to furnish information on application in prescribed form, if satisfied it is in the public interest. Their decision is final and not to be called in question in any court. Hence the option claiming a right to the information, or court challenge, is incorrect.

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