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

Ravi Textiles Ltd, Surat, is assessed by an Assessing Officer. The Board issues a general order under the Income-tax Act, 2025 empowering a specified authority to direct that the powers of the Assessing Officer for a class of cases be exercised by a Joint Commissioner. Which statement is correct about the effect of this order?

Once such an order is made, references to the Assessing Officer in the Act and rules are deemed to be references to the Joint Commissioner who exercises the powers. Any provision requiring the Joint Commissioner's approval or sanction does not apply, since he is himself acting as the Assessing Officer.

  1. AReferences to the Assessing Officer are deemed to be references to the Joint Commissioner, and provisions needing the Joint Commissioner's approval or sanction do not applyCorrect
  2. BThe Joint Commissioner exercises the powers, but every provision requiring his approval still applies to his own orders
  3. CThe order is invalid, because only a Commissioner can exercise Assessing Officer powers
  4. DThe Assessing Officer continues to be the only authority, and the Joint Commissioner may only supervise

Explanation

Under section 241(6), where an order is made under sub-section (5)(b), references to the Assessing Officer mean the Joint Commissioner (or other named officer) and any requirement of Joint Commissioner approval or sanction does not apply. Requiring approval from himself would be illogical, which is why the second option is wrong.

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