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

The Central Government has notified a faceless scheme under section 245 of the Income-tax Act, 2025. Consider these statements: (I) The scheme may provide for team-based exercise of powers by two or more authorities concurrently with dynamic jurisdiction. (II) The Government may direct that any provision of the Act shall not apply or apply with modifications to give effect to the scheme, and such notification need not be laid before Parliament. (III) The scheme aims to eliminate the interface between the authority and the assessee to the extent technologically feasible. Which is correct?

Statements I and III are correct: the faceless scheme may provide team-based concurrent exercise with dynamic jurisdiction and aims to remove the interface with assessees where technologically feasible. Statement II is wrong because notifications under section 245(1) and (3) must be laid before each House of Parliament.

  1. AI and III only are correctCorrect
  2. BI, II and III are correct
  3. CII and III only are correct
  4. DI and II only are correct

Explanation

Section 245(2)(c) permits team-based exercise with dynamic jurisdiction and 245(2)(a) speaks of eliminating interface to the extent technologically feasible, so I and III are right. Section 245(4) requires every notification under sub-sections (1) and (3) to be laid before each House of Parliament, so II is wrong.

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