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CMA Final · Direct Tax Laws and International Taxation · CBDT and Other Authorities

Two Assessing Officers of different classes, a Deputy Commissioner and an Assistant Commissioner, are directed under section 241(7) of the Income-tax Act, 2025 to exercise powers concurrently over a class of cases. Which statement is correct?

The lower-ranking officer exercises the powers as directed by the higher-ranking one. References to the Assessing Officer are deemed to be references to the higher authority, and provisions requiring approval or sanction of such authorities do not apply, according to section 241(7).

  1. AThe lower-ranking officer exercises powers as the higher-ranking officer directs, and references to the Assessing Officer are deemed to refer to the higher authorityCorrect
  2. BEach officer acts independently and neither is bound by the other's direction
  3. CThe higher-ranking officer must follow the lower-ranking officer's directions in the cases
  4. DApprovals or sanctions of the higher authority remain mandatory even though he is deemed the Assessing Officer

Explanation

Under section 241(7)(a) the lower authority exercises powers as the higher authority directs. Under 241(7)(b) references to the Assessing Officer are deemed references to the higher authority, and provisions requiring approval or sanction of any such authority do not apply. The option keeping approval mandatory is therefore wrong.

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