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CS Executive · Tax Laws and Practice · Basic Concept of Income Tax

Under the Income-tax Act, 2025, where directions require two or more Assessing Officers of different classes to exercise powers concurrently over the same area or cases, which statement is correct?

The lower-ranking authority must exercise powers as the higher authority directs, and references to the Assessing Officer are deemed to be references to the higher authority. Provisions requiring that authority's approval or sanction then do not apply. The assessee has no choice of officer.

  1. AThe lower-ranking authority acts as directed by the higher authority, and references to the Assessing Officer are treated as references to that higher authorityCorrect
  2. BEach officer acts independently and the lower authority's view prevails
  3. COnly the officer with the longest service may act
  4. DThe assessee chooses which officer will exercise jurisdiction

Explanation

Section 241(7) provides that where Assessing Officers of different classes act concurrently, the lower in rank exercises powers as the higher directs. References to the Assessing Officer are deemed to be to the higher authority, and provisions requiring that authority's approval or sanction do not apply. The independent-action option contradicts this.

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