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

The Central Government proposes to introduce a faceless scheme for the exercise of jurisdiction of income-tax authorities. Which of the following is consistent with the Income-tax Act, 2025?

The scheme may provide for a team-based exercise of powers and functions by two or more income-tax authorities concurrently, with dynamic jurisdiction. The Central Government notifies the scheme, may modify the Act's provisions for it, and aims to eliminate interface with the assessee where technologically feasible.

  1. AThe scheme can be notified only by the Board, and no provision of the Act can be modified by it
  2. BThe scheme must be laid before Parliament before it takes effect, failing which it is void
  3. CThe scheme may provide for a team-based exercise of powers by two or more authorities concurrently, with dynamic jurisdictionCorrect
  4. DThe scheme must provide for personal appearance of the assessee before the authority in every case

Explanation

Section 245(2)(c) allows a team-based exercise of powers concurrently by two or more authorities with dynamic jurisdiction. The Central Government (not the Board) makes the scheme and may direct modifications of the Act's provisions under 245(3). Notifications are laid before Parliament as soon as may be after issue, not as a precondition. The scheme aims to eliminate interface to the extent technologically feasible.

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