INCOME TAX AUTHORITIES -

POWERS
COMPOSITION OF INCOME TAX AUTHORITIES
❖ Government of India has organized number of authorities to execute Income
Tax Act as well as to administer Income Tax Department efficiently.
❖ The different classes of Income Tax Authorities are as follows: (Sec 116)
1. The Central Board of Direct Taxes. (CBDT)

1A: Principal Directors General of Income Tax/ Principal Chief Commissioners of

Income Tax.

2. Directors- General of Income Tax or Chief Commissioners of Income Tax.

2A: Principal Directors of Income Tax/Principal Commissioners of Income Tax.

3. Directors of Income Tax/ Commissioners of Income Tax / Commissioners of

Income Tax. (Appeals)
4. Additional Directors of Income Tax / Additional Commissioners of Income Tax.

5. Joint Directors of Income Tax / Joint Commissioners of Income Tax.

6. Deputy Directors of Income Tax / Deputy Commissioners of Income Tax.

7. Assistant Directors of Income Tax / Assistant Commissioners of Income Tax.

8. Income Tax Officers.

9. Tax Recovery Officers.

10. Inspectors of Income Tax.

11. Assessing Officer

 Central Board of Direct Taxes
❖ CBDT is the Apex body (Highest Authority) in the Direct Tax System-
functions under MOF, GOI.

❖ Constituted under Central Board of Revenue Act 1963.

❖ Board consists of Chairman and six members appointed by the Central

Government.

❖ Performs various statutory functions and

❖ Responsible for formulation and implementation of policies relating to direct

taxes administration.

❖ Referred to as Policy Making Body of Income Tax Department and controls

income tax authorities.
POWERS OF CBDT
● Power to make rules
● Power to issue instructions and directions
● Power to authorise income tax authority to admit application
● Power to relax compliance of certain requirement
● Power to appoint
● Power of authorisation
● Power to declare company
● Power to direct authority higher in rank to perform functions of authority lower
in rank
● Power to empower Principal Director General or Director General or Principal
Chief Commissioner or Commissioner to issue orders that the powers
assigned the Assessing Officer in respect of any specified area or person or
incomes or classes of incomes shall be exercised by an Additional
Commissioner or an Additional Director or a Joint Commissioner or a Joint
Director
● It may require 2 or more Assessing Officers to function concurrently.
● Power to issue order of transfer in disputes regarding jurisdiction.
● Power to authorize authority for search and seizure
● Power to order to furnish information to officer etc. of other dept, if it is in
public interest
● Power to issue tax payer’s charter
 Powers of Director General/ Chief Commissioner/ Commissioner

● Power to appoint Income Tax Authorities below their rank if authorized by the Central
Government. (Sec 117 (2))
● Power to appoint executive/staff for the execution of their functions if authorized by the
Board. (Sec 117 (3))
● Power to transfer case from one AO to another AO subordinate to him. (Sec 127)
● Power to undertake search and seizure (Sec132) as directed by the Board
● Power to act as an AO in executing enquiries. (Sec 135)
● Chief commissioner/commissioner has the power to furnish information (relating to
imposition of tax, duty, cess) to any department, if it is in public interest. (Sec 138)
● Power to issue notice for Re-assessment (u/s 148) after the expiry of four years by
Commissioners. (Sec 151 (1))
● Power to issue order –setting off the sum remaining payable against refund. (Sec 245)
● Power to issue order for enhancing, modifying/cancelling assessment and directing fresh
assessment against order passed by an AO –(prejudicial to the interest of revenue). (Sec
263)
● Power to call for the record of the proceedings under the Act and pass a revised order-
either on his own motion/receipt of application from assessee. (Sec 264)
● Power to waive /reduce penalty imposed on person relating to (Concealment of Income).
(Sec 273 A)
● Chief Commissioner /Director General has the power to approve the order of
reduction/waiver of penalty imposed by the Commissioner (>5,00,000) (Sec 273 (2b))

● Director General/ Chief Commissioner has the power to grant approval to the AO for any
order relating to the attachment of any property of an assessee for protecting the
interest of revenue. (Sec 281B)
● Power to reduce/waive interest payment u/s 234A, 234 B and 234 C.
● Power to pass order relating to acquisition of books of accounts/property under law.
(Sec 132A)
● Power to take decision on interest payable by the Government on delayed refunds.
(Sec 244A (2)).
 POWERS OF JOINT COMMISSIONERS/ASSISTANT DIRECTOR/ DEPUTY
DIRECTOR

1. Power to call for information u/s 133.

2. Assistant Directors/Deputy Directors can undertake survey within their jurisdiction after
getting approval of Joint Commissioner/Joint Director. (Sec 133A)
3. Power to enter any building/place for the purpose of collecting any relevant information for the
purpose of the Act. (Sec 133B)
4. Power to inspect and take copies of registers of members, debenture holders, mortgagees of
any company.(Sec 134)
5. Power to act as an AO un relation to making enquiries. ( Sec 135)
6. Power to serve notice u/s 142 and 148 for making enquiry.
7. Power to make assessment u/s 143, 144 and 147.
8. Joint Commissioner has the power to call/examine record of proceedings in whic h
assessment is pending and issue directions to it. ( Sec 144A)
9. Power to execute the Code of Civil Procedure, 1908 while trying a suit under this Act by Joint
Commissioner/Assistant /Deputy Director (Sec 131(1)).
10. If the Assistant Director or Dy. Director has a reason to suspect that any income has been
concealed or is likely to be concealed by any person within his jurisdiction, he shall be
competent to exercise all powers under Sub-section (1) of Section 131.
 Assessing Officer (Sec 2 (7A))

★ Person appointed to be an Assistant Commissioner/ Deputy Director/ Deputy

Commissioner/ Assistant Director/ Additional Commissioner/ Additional Director
/Joint Commissioner/ Joint Director/ Income Tax Officer vested with all or any
powers and functions conferred to an AO by CBDT.
 POWERS OF JURISIDICTIONAL ASSESSING OFFICER

Under Faceless Assessment Scheme the power of the jurisdictional assessing officer is limited
● To imposition of penalty
● Collection and Recovery of demand
● Rectification of mistakes
● Giving effect to Appellate Orders
● Submit remand report called by appellate authorities
 POWERS OF COMMISSIONER (APPEALS)

● Power to exercise the Code of Civil Procedure,1908 while trying a suit in a court. (Sec 131)
● Power to call for information u/s 133.
● Power to inspect the register and take copies of register, members, mortgagees of a
company.
● The Commissioner of Appeals while disposing of an appeal, shall have the following powers:
1. Appeal against assessment-May confirm, reduce, enhance or annul the assessment
2. Appeal against order imposing a penalty –Confirm or cancel such order or vary it so
as either to enhance or to reduce the penalty.
3. In any other case, he may pass any such order as he thinks fit.
 Inspectors of Income Tax

★ Appointed by the Commissioner of Income Tax

★ Perform all such functions assigned to then from time to time either by
Commissioner / by other authority under whom they are working.