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

Under a Board direction under the Income-tax Act, 2025, an Assistant Commissioner and a Principal Commissioner are required to exercise powers concurrently over the same class of cases. Which statement is correct?

Concurrent exercise is permitted even for different classes. The lower-ranking authority acts as the higher one directs, references to the Assessing Officer are treated as references to the higher authority, and provisions requiring approval or sanction of that authority do not apply.

  1. AThe Assistant Commissioner prevails because he is closer to the assessee
  2. BConcurrent exercise by authorities of different classes is not allowed under the Act
  3. CThe authority lower in rank acts as the higher authority directs, references to the Assessing Officer mean the higher authority, and approval requirements of such authority do not applyCorrect
  4. DBoth authorities must act jointly, and approval of the higher authority is still required for each act

Explanation

Section 241(7) permits concurrent exercise by two or more Assessing Officers, even of different classes. Under 241(7)(a) the lower-ranking authority exercises powers as the higher authority directs. Under 241(7)(b) references to the Assessing Officer are deemed to be references to the higher authority, and provisions requiring approval or sanction of such authority do not apply. The joint-action and approval option contradicts this.

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