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

Under section 241(7) of the Income-tax Act, 2025, two Assessing Officers of different classes are directed to exercise powers concurrently over a class of cases. Which statement is correct?

The lower-ranking authority acts as the higher authority directs, and references to the Assessing Officer are deemed to refer to the higher authority. Section 241(7) sets this for concurrent exercise by officers of different classes, and approvals required from that higher authority no longer apply.

  1. AThe lower-ranking authority acts as the higher authority directs, and references to the Assessing Officer are deemed to be to the higher authorityCorrect
  2. BBoth authorities act independently and neither may direct the other
  3. CThe higher authority must act as the lower authority directs
  4. DThe Board must approve each individual action of either authority

Explanation

Under section 241(7)(a), where Assessing Officers of different classes act concurrently, the lower in rank exercises powers as the higher directs. Under (b), references to the Assessing Officer are deemed to be to that higher authority, and approvals or sanctions of such authority do not apply. Independence of the two or reversed direction contradicts this.

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