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

Two Assessing Officers, a Deputy Commissioner and an Assistant Commissioner, have been directed to exercise powers concurrently over a class of cases in Chennai. Under section 241(7) of the Income-tax Act, 2025, what is the position?

Where Assessing Officers of different classes exercise powers concurrently, the lower-ranking one acts as the higher-ranking one directs, and references to the Assessing Officer are treated as references to the higher authority, whose own approval or sanction requirements then do not apply.

  1. AThe lower-ranking authority exercises powers as the higher authority among them directs, and references to the Assessing Officer mean the higher authorityCorrect
  2. BEach officer acts independently and neither may direct the other
  3. CThe higher authority must act as per the directions of the lower authority
  4. DConcurrent jurisdiction is not permitted among Assessing Officers of different classes

Explanation

Section 241(7)(a) says where Assessing Officers of different classes act concurrently, the lower in rank shall act as the higher directs. Clause (b) deems references to the Assessing Officer to be references to the higher authority, and approval provisions of such authority do not apply. Independent action is not what the Act provides.

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