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

Ravi Enterprises is assessed in Pune. During assessment proceedings, the Assessing Officer summons Ravi's accountant to give evidence. Under the Income-tax Act, 2025, which statement about the nature of proceedings before an income-tax authority is correct?

Proceedings before an income-tax authority are deemed judicial proceedings for the stated purposes, including the Bharatiya Nyaya Sanhita provision on false evidence. The authority is deemed a Civil Court for the specified Bharatiya Nagarik Suraksha Sanhita section but expressly not for Chapter XXVIII of that Sanhita.

  1. AThe proceeding is deemed to be a judicial proceeding for the purposes of the Bharatiya Nyaya Sanhita provision on false evidence, and the authority is deemed a Civil Court for the specified Bharatiya Nagarik Suraksha Sanhita section but not for its Chapter XXVIIICorrect
  2. BThe proceeding is purely administrative and not judicial for any purpose
  3. CThe authority is deemed a Civil Court for all purposes of the Bharatiya Nagarik Suraksha Sanhita, including Chapter XXVIII
  4. DThe proceeding is judicial only if the assessee is a company

Explanation

Section 257(1) deems any proceeding before an income-tax authority a judicial proceeding for the stated purposes, including section 233 of the Bharatiya Nyaya Sanhita. Under section 257(2) the authority is deemed a Civil Court for section 215 of the Bharatiya Nagarik Suraksha Sanhita but not for its Chapter XXVIII. Option C ignores that exclusion.

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