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CMA Final · Direct Tax Laws and International Taxation · CBDT and Other Authorities

The Board orders under section 241 that two Assessing Officers, one an Assistant Commissioner and the other a Deputy Commissioner, exercise powers concurrently over a class of cases. What is the legal effect?

Concurrent exercise is allowed. The lower-ranking authority must exercise powers as the higher one directs, references to the Assessing Officer are deemed to be to the higher authority, and any requirement of approval or sanction of that authority does not apply, under section 241(7).

  1. AThe lower-ranking authority acts as directed by the higher, references to the Assessing Officer mean the higher authority, and provisions requiring approval of that authority do not applyCorrect
  2. BEach officer may pass independent and conflicting orders
  3. CReferences to the Assessing Officer mean the lower authority, and approval of the higher is required
  4. DConcurrent jurisdiction is not permitted for officers of different ranks

Explanation

Section 241(7) permits concurrent exercise by Assessing Officers of different classes. The lower in rank acts as the higher directs. References to the Assessing Officer are deemed to be to the higher authority, and any provision requiring the approval or sanction of such authority does not apply. The distractor requiring approval reverses this.

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