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

Under section 241(7) of the Income-tax Act, 2025, a Principal Commissioner's order gives an Assessing Officer (Deputy Commissioner) and a Joint Commissioner concurrent jurisdiction over a class of cases in Nagpur. Which statement is correct?

The lower-ranking authority must exercise powers as the higher-ranking authority directs. References to the Assessing Officer are deemed references to the higher authority, and any provision requiring that authority's approval or sanction does not apply. Concurrent jurisdiction across different classes is expressly allowed under section 241(7).

  1. AThe Deputy Commissioner may act independently of the Joint Commissioner, and references to the Assessing Officer mean the Deputy Commissioner
  2. BThe Joint Commissioner must act as the Deputy Commissioner directs, because rank is irrelevant
  3. CThe lower-ranking authority exercises powers as the higher-ranking authority directs, references to the Assessing Officer are deemed to be to the higher authority, and any approval or sanction requirement of that authority does not applyCorrect
  4. DConcurrent jurisdiction is not permitted between authorities of different classes

Explanation

Section 241(7) permits concurrent jurisdiction. Where Assessing Officers of different classes act concurrently, the lower authority acts as the higher directs (7(a)). References to the Assessing Officer are deemed to be to the higher authority, and any approval or sanction requirement of that authority does not apply (7(b)). Option B reverses the direction of authority.

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