Hadiqua Islam

A90856121027

Taxation Law

LAW 442

Income Tax Authorities (Section 116)

According to the Income Tax Act, 1961 there are the following classes of income tax authorities-

i. the Central Board of Direct Taxes constituted under the Central Boards of Revenue

Act, 1963

ii. Director General of Income- tax or Chief Commissioners of Income tax,

iii. Directors of Income- tax or, Commissioners of Income tax or Commissioners of

Income- tax (Appeals),

iv. Additional Directors of Income- tax or Additional Commissioners of Income- tax or

Additional Commissioners of income tax (Appeals),

v. Deputy Directors of Income tax or Deputy Commissioners of Income- tax or Deputy

Commissioners of Income tax (Appeals),

vi. Assistant Directors of Income tax or Assistant Commissioners of Income tax,

vii. Income tax Officers,

viii. Tax Recovery Officers,

ix. Inspectors of Income tax

Appointment of Income-Tax Authorities [ Sec. 117 ]

Power of Central Government : The Central Government may appoint such persons as it thinks

fit to be income-tax authorities. It kept with itself the powers to appoint authorities upto and

above rank of an Assistant Commissioner of Income-Tax [ Sec. 117 (1) ]

Power of the Board and Other Higher Authorities : Subject to the rules and orders of the Central

Government regulating the conditions of service of persons in public services and posts, the
Central Government may authorize the Board, or a Director-General, a Chief Commissioner or a

Director or a Commissioner to appoint income-tax authorities below the rank of an Assistant

Commissioner or Deputy Commissioner. [ Sec. 117 (2) ]

Power to appoint Executive and Ministerial Staff : Subject to the rules and orders of the Central

Government regulating the conditions of service of persons in public services and posts, an

income-tax authority authorized in this behalf by the Board may appoint such executive or

ministerial staff as may be necessary to assist it in the execution of its functions

Central Board of Direct Taxes (CBDT)

The Central Board of Direct Taxes (CBDT) is a statutory authority in India responsible for

administering direct taxes and enforcing tax laws under the Department of Revenue, Ministry of

Finance. It formulates policies, guides and supervises the implementation of direct tax laws, and

ensures the fair and equitable collection of direct taxes, including income tax and corporate tax,

throughout the country. The CBDT also functions as the apex body for the Income Tax Department

and plays a crucial role in the assessment, scrutiny, and collection of direct taxes in India.

The full form of CBDT is the Central Board of Direct Taxes which is a statutory body established

under the Central Board of Revenue Act, 1963, in India.

Jurisdiction of Income Tax Authorities (Section 120)

Any income-tax authority, being an authority higher in rank, may, if so, directed by the CBDT,

exercise the powers and perform the functions of the income-tax authority lower in rank and any

such direction issued by the Board shall be deemed to be a direction issued under sub-section (1).

In issuing the directions or orders referred to in sub-sections (1) and (2), the Board or other

income-tax authority authorized by it may have regard to any one or more of the following

criteria, namely- (a) territorial area; (b) persons or classes of persons; (c) incomes or classes of

income; and (d) cases or classes of cases.

Power to transfer cases

The Commissioner may, after giving the assessee a reasonable opportunity of being heard in the

matter, wherever it is possible to do so, and after recording his reasons for doing so, transfer any

case from any Income-tax Officer or Income-tax Officers subordinate to him to any other

Income-tax Officer or Income-tax Officers.

Succession of Income Tax Authorities (Section 129)

Whenever in respect of any proceeding under this Act an income tax authority ceases to exercise

jurisdiction and is succeeded by another who has and exercises jurisdiction, the income-tax

authority so succeeding may continue the proceeding from the stage at which the proceeding was

left by his predecessor.

Faceless Jurisdiction of Income Tax Authorities (Section 130)

The Central Government may make a scheme, by notification in the Official Gazette, for the

purposes of-

A. Exercise of all or any of the powers and performance of all or any of the functions conferred

on, or, as the case may be, assigned to income-tax authorities by or under this Act as referred to

in section-120; or

B. Vesting the jurisdiction with the Assessing Officer as referred to in section-124; or exercise of

power to transfer cases under section-127; or exercise of jurisdiction in case of change of

incumbency as referred to in section-129, in order to impart greater efficiency, transparency and

accountability by-

i. Eliminating the interface between the income-tax authority and the assessee or any other

person, to the extent technologically feasible.

ii. Optimizing utilization of the resources through economies of scale and functional

specialization.

iii. Introducing a team-based exercise of powers and performance of functions by two or more
income-tax authorities, concurrently, in respect of any area or persons or classes of persons or

incomes or classes of income or cases or classes of cases, with dynamic jurisdiction.

Every notification issued under this section must be laid before each House of Parliament.