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

Ravi, a tax consultant, is studying how the Income-tax Act, 2025 allows the Board to arrange the hierarchy among income-tax authorities. Which statement correctly reflects the power given by section 238 (Control of income-tax authorities)?

The Board, by notification, may direct that specified income-tax authorities are subordinate to other specified authorities. Section 238 gives this control power to the Board and requires a notification, so it is not a matter fixed rigidly by the Act or left to individual Chief Commissioners.

  1. AThe Board may, by notification, direct that specified income-tax authorities shall be subordinate to other specified income-tax authoritiesCorrect
  2. BThe Central Government alone may, by an order without notification, decide the subordination of authorities
  3. CEach Chief Commissioner may, by internal order, decide which authorities are subordinate to him
  4. DThe subordination of authorities is fixed only by the Act and cannot be altered by any notification

Explanation

Section 238 empowers the Board, by notification, to direct that any specified authority or authorities shall be subordinate to other specified authorities. The Central Government's role is appointment under section 237, not subordination, so the second option is wrong.

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