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

Under section 245 of the Income-tax Act, 2025, the Central Government frames a faceless scheme for exercise of jurisdiction. Which statement about the scheme is correct?

The scheme is made by Central Government notification. It aims to eliminate interface with the assessee only to the extent technologically feasible, and may introduce team-based exercise of powers by two or more authorities concurrently with dynamic jurisdiction. It covers more than case transfers, including section 241 functions and jurisdiction under sections 242 and 244.

  1. AIt may be made by the Board by administrative circular without any notification
  2. BIt must eliminate all interface between authorities and assessees, even where technology is not feasible
  3. CIt is made by notification, may eliminate interface to the extent technologically feasible, and may provide team-based exercise of powers by two or more authorities concurrently with dynamic jurisdictionCorrect
  4. DIt applies only to the transfer of cases and not to other jurisdictional matters

Explanation

Section 245(1) lets the Central Government make the scheme by notification, covering functions under section 241, vesting jurisdiction under 242, transfer of cases under 243 and change of incumbency under 244. Under 245(2), interface is eliminated only to the extent technologically feasible, and team-based exercise with dynamic jurisdiction is allowed. Option B drops the feasibility qualifier and option D understates the scope.

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