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CMA Final · Direct Tax Laws and International Taxation · Different Aspects of Tax Planning

The Board issues a notification under section 241(8) of the Income-tax Act, 2025 about the authority to whom a class of persons must furnish returns. A Chief Commissioner has separately issued an area-wise jurisdiction order covering the same persons. Which statement is correct?

The Board's notification prevails. Section 241(8) allows the Board to issue directions irrespective of any direction or order under section 241 or 242, and section 241(9) makes the authority named in the notification the one exercising the powers. A local territorial order cannot override it.

  1. AThe Board's notification operates irrespective of any direction or order under section 241 or section 242, and the authority specified in it exercises the functionsCorrect
  2. BThe Chief Commissioner's territorial order prevails over the Board's notification
  3. CBoth operate concurrently and the lower authority decides the matter
  4. DThe notification is valid only if the Assessing Officer consents

Explanation

Section 241(8) lets the Board issue directions irrespective of anything in any direction or order under section 241 or section 242, and section 241(9) says the authority specified in that notification exercises the powers. The territorial order therefore does not override it.

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