Skip to content

CA Final · Direct Tax Laws & International Taxation · Provisions to Counteract Unethical Tax Practices

The Commissioner of Income-tax receives an application in the prescribed form from Rohan Traders Association, a private trade body, seeking information about an assessee's income that was obtained by income-tax authorities in the course of their functions. Which statement is correct under section 258 of the Income-tax Act, 2025?

The Commissioner may furnish the information only if satisfied that doing so is in the public interest, after an application in the prescribed form. His decision is final and cannot be questioned in any court. Section 258(2) therefore gives no right to disclosure and no appeal.

  1. AThe Commissioner may furnish the information if satisfied that it is in the public interest, and his decision is final and cannot be questioned in any courtCorrect
  2. BThe Commissioner must furnish the information to any applicant on payment of a fee
  3. CThe Commissioner can furnish it only with a High Court order
  4. DThe Commissioner may furnish it, but the decision can be appealed before the Appellate Tribunal

Explanation

Section 258(2) lets the Principal Chief Commissioner, Chief Commissioner, Principal Commissioner or Commissioner furnish information to a person on an application in the prescribed form, if satisfied that it is in the public interest. Clause (b) says the decision is final and cannot be called in question in any court. Disclosure is therefore not a matter of right and no appeal lies.

Did you get it right without looking?

One question tells you little. A timed set on Provisions to Counteract Unethical Tax Practices shows your real accuracy, how long you take and where you lose marks.

Practise Provisions to Counteract Unethical Tax PracticesFree diagnostic mock

More Provisions to Counteract Unethical Tax Practices questions