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

Under section 241 of the Income-tax Act, 2025, the Board's directions for exercise of powers by income-tax authorities may have regard to which of the following criteria?

The Board may consider any one or more of four criteria: territorial area, persons or classes of persons, incomes or classes of income, and cases or classes of cases. These are listed in section 241(4). The criteria are not limited to territory, and tax amount is not one of them.

  1. AOnly the territorial area
  2. BTerritorial area, persons or classes of persons, incomes or classes of income, and cases or classes of casesCorrect
  3. COnly the amount of tax payable by the assessee
  4. DThe age and residential status of the Assessing Officer

Explanation

Section 241(4) allows the Board or an authorised authority to have regard to any one or more of four criteria: territorial area, persons or classes of persons, incomes or classes of income, and cases or classes of cases. Restricting it to area alone, or using tax amount, is not supported by the text.

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