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

The Principal Commissioner receives an application in the prescribed form from Mr Verma, a member of the public, seeking information about an assessee obtained by income-tax authorities. The Principal Commissioner is satisfied that disclosure is in the public interest and furnishes it. Mr Verma's rival challenges the decision in court. Under Section 258 of the Income-tax Act, 2025, which is correct?

The decision is final and cannot be questioned in any court of law. Section 258(2) lets the Commissioner-level authority furnish information on a prescribed-form application when satisfied of public interest, and it specifically bars judicial challenge to that decision.

  1. AThe decision is final and cannot be called in question in any court of lawCorrect
  2. BThe decision can be appealed to the High Court within sixty days
  3. CThe decision requires prior approval of the Central Government
  4. DThe decision is valid only if the assessee consents

Explanation

Section 258(2) permits the Principal Chief Commissioner, Chief Commissioner, Principal Commissioner or Commissioner to furnish information on application in the prescribed form if satisfied it is in the public interest. Clause (b) says the decision is final and cannot be called in question in any court. No Central Government approval or assessee consent is mentioned.

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