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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, Rohan applies to a Principal Commissioner in the prescribed form for information about an assessee, claiming a public interest. The Principal Commissioner, satisfied of the public interest, furnishes the information. Which statement about the decision is correct?

The decision is final and cannot be questioned in any court of law. Section 258(2) lets a Commissioner-level authority furnish information on a prescribed-form application when satisfied of public interest, and makes that decision final, with no need for the assessee's consent or Central Government approval.

  1. AThe decision of the authority is final and shall not be called in question in any court of lawCorrect
  2. BThe decision can be appealed before the Supreme Court as of right
  3. CThe decision needs approval of the Central Government within thirty days
  4. DThe decision is valid only if the assessee consents

Explanation

Section 258(2) allows the Principal Chief Commissioner, Chief Commissioner, Principal Commissioner or Commissioner to furnish information on an application in the prescribed form if satisfied it is in the public interest. Clause (b) says their decision is final and shall not be called in question in any court of law. No Central Government approval or assessee consent is required.

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