Income Tax Authorities -

Power and Hierarchy

Submitted By-
Himanshi Khivsara
20010143033
INCOME TAX DEPARTMENT

VISION

MISSION

VALUES
WHO ARE INCOME TAX AUTHORITIES?
(SEC116)
 
a) The Central Board of Direct Taxes.
b) Directors-General of Income-tax or Chief Commissioners of Income-
tax.
c) Directors of Income-tax or Commissioners of Income-tax.
d) Additional Directors of Income tax or Additional Commissioners of
Income tax.
e) Joint Directors of Income tax or Joint Commissioners of Income Tax.
f) Deputy Directors of Income-tax or Deputy Commissioners of
Income-tax.
g) Assistant Directors of Income-tax or Assistant Commissioners

of Income-tax.
h) Income-tax Officers.
i) Tax Recovery Officers.
j) Inspectors of Income-tax.
IMPORTANCE OF ASSESSING OFFICER
• Plays a vital role in the organizational setup.
• Primary authority who initiates proceedings and directly connected
with public.
• Orders passed by him can be challenged only on appeal.
 CENTRAL BOARD OF DIRECT TAXES
• The CBDT is a statutory authority functioning under the Central Board
of Revenue Act, 1963. It functions under jurisdiction of Ministry of
Finance under Department of Revenue.
• It compromises of Chairman and six other members. However the
number of members may change as the Central Government requires.
Each member is assigned a special function. They are assisted by Joint
Secretaries, Directors, Deputy Secretaries, Under Secretaries and
ministerial staff for carrying out their day to day functions.
• “ Control and Supervision of all departments of Income Tax”.
 POWERS OF CBDT
• Power to make rules (Sec 295).
• Power to issue instruction to subordinates (Sec 119).
• Power to appoint CG----CBDT (Sec 117(2)).
• Power to appoint CBDT--- IT(Sec 117(3)).
• Power to authorize IT Authorities to initiate proccedings for penalties.
• Power to authorize IT Authorities to admit application or claim except
commissioner(Appeal).
• Power to relax in Compliances of requirement.
• Power to direct Higher Authority to perform function of lower
rationale authority.
• Authorize Authority for Search and Seizure (Sec 132).
• Dispute regarding Jurisdiction (Section 127).
• Concurrent Jurisdiction.
• CBDT empowers Principal Director/ commissioner, Director General/
Chief Commissioner for issuing orders against the AO.
• Power to Declare Company.
• Order to furnish Information to officers of other debt.
 DIRECTOR GENERAL / CHIEF
COMMISIONER OF INCOME TAX
Appointment
By the central Govt.

Jurisdiction
Determined by CBDT.

Functions
CBDT assigns functions by general or special order.
 POWERS
•  Exercise powers of an assessing officer.
• Appoint income tax authorities below the rank of assistant
commissioner.
• Make enquiries on investigations into concealment – Section 131
(1A).
• Giving instructions to income tax officers Section 119 (2).
• Power of Survey- Section 133A.
• Power to make enquiry – Section 135.
 DIRECTOR/COMISSIONER OF INCOME
TAX
Appointment
By central govt.

Jurisdiction
Determined by central boar of direct taxes.

Functions
The Board assigns function by general or special order.
 POWERS
• Commissioner may exercise powers of an assessing officer.
• Power to transfer any case from one or more assessing officers to any
other assessing officer.
• Grant approval for an order issued by the assessing officer.
• Prior approval is required for reopening of an assessment.
• Power to revise an order passed by an assessing officer.