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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. How do they work?

The lower-ranking officer exercises the powers as the higher-ranking officer directs. References to the Assessing Officer are deemed to be references to the higher authority, and provisions requiring that authority's approval or sanction do not apply. This is the rule in section 241(7) of the Income-tax Act, 2025.

  1. AThe lower-ranking officer exercises powers as the higher-ranking officer directs, and references to the Assessing Officer are deemed to be to the higher authorityCorrect
  2. BEach officer acts independently with no direction from the other
  3. CThe higher-ranking officer must seek the lower-ranking officer's approval for every act
  4. DConcurrent jurisdiction is not permitted by the Act

Explanation

Section 241(7) permits concurrent exercise of powers by two or more Assessing Officers. Where they are of different classes, the lower-ranking officer acts as the higher one directs, and references to the Assessing Officer are deemed to be to the higher authority, whose approval-requirement provisions do not apply.

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