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CA Final · Direct Tax Laws & International Taxation · Provisions to Counteract Unethical Tax Practices

Under section 258 of the Income-tax Act, 2025, Mr Rao, a private person, applies in the prescribed form to a Principal Commissioner for information about another assessee, claiming public interest. The Principal Commissioner is satisfied that disclosure is in public interest and furnishes the information. Which statement is correct?

The decision is final and cannot be called in question in any court of law. Section 258(2) lets a Principal Commissioner or similar authority furnish information on a prescribed-form application once satisfied that it is in the public interest.

  1. AThe decision of the Principal Commissioner is final and cannot be called in question in any court of lawCorrect
  2. BThe decision can be freely challenged in any civil court
  3. COnly the Board, not the Principal Commissioner, can furnish information to private persons
  4. DInformation can be furnished without any application in the prescribed form

Explanation

Section 258(2) allows the Principal Chief Commissioner, Chief Commissioner, Principal Commissioner or Commissioner to furnish information on application in prescribed form when satisfied it is in public interest, and states the decision is final and not to be questioned in any court. The other options contradict this.

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