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

Two Assessing Officers of different classes are directed under section 241(7) of the Income-tax Act, 2025 to exercise powers concurrently over the same class of cases. Which statement follows from the provision?

The lower authority must act as the higher authority directs, and references to the Assessing Officer are read as references to the higher authority. Approval or sanction requirements of that authority then do not apply. This follows from section 241(7), which expressly permits concurrent exercise by officers of different classes.

  1. AThe lower authority acts as the higher authority directs, and references to the Assessing Officer are treated as references to the higher authority, whose approval requirements then do not applyCorrect
  2. BEach officer acts independently and the higher authority cannot give directions
  3. CThe higher authority must always obtain the Joint Commissioner's approval for each order
  4. DConcurrent jurisdiction is not allowed for officers of different classes

Explanation

Section 241(7)(a) says the lower-ranking authority exercises powers as directed by the higher one. Under (7)(b), references to the Assessing Officer are deemed references to the higher authority, and provisions requiring approval or sanction of such an authority do not apply. Independence of each officer contradicts (a), and concurrent jurisdiction is expressly permitted.

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