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

Under the Income-tax Act, 2025, who is empowered to appoint income-tax authorities in general, and what may the Central Government do about authorities below the rank of Deputy Commissioner or Assistant Commissioner?

The Central Government appoints income-tax authorities and may authorise the Board or specified senior officers, such as a Commissioner, to appoint authorities below the rank of Deputy or Assistant Commissioner. State Governments and the Appellate Tribunal have no such role under the Income-tax Act, 2025.

  1. AThe Central Government appoints them, and may authorise specified senior authorities such as a Commissioner to appoint authorities below that rankCorrect
  2. BOnly the Board may appoint any authority, and it cannot delegate this power
  3. CState Governments appoint all authorities below the rank of Commissioner
  4. DThe Appellate Tribunal appoints all authorities below Joint Commissioner

Explanation

Section 237 empowers the Central Government to appoint income-tax authorities. It may authorise the Board, or a Director General, Chief Commissioner, Director or Commissioner and similar ranks, to appoint authorities below the rank of Deputy or Assistant Commissioner. The Board-only option is wrong because delegation is expressly allowed.

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