Prepared By:-Sonal Patel (37) Mitul Sevak (47)Ruchi Shah (50)Nilesh Sayani(53)

INCOME TAX AUTHORITIES

Submitted To:-Lec. Varun Dhingra

Group No:- VIII

Agenda Who are income-tax authorities ?What are powers of the Central Board of

Direct Taxes? What are powers of General Director or

Director? What are powers of Commissioners

(Appeals)?What are powers of Joint Commissioners?What are powers of Income-tax Officers?

Who are income-tax authorities?

[Sec. 116]

The Central Board of Direct Taxes constituted under the Central Boards of RevenueAct, 1963.

Directors-General of Income-tax or Chief Commissioners of Income-tax.

Directors of Income-tax or Commissioners of Income-tax or Commissioners of Income-tax (Appeals)

Additional Directors of Income-tax, Additional Commissioners of Income-tax or Additional Commissioners of Income-tax (Appeals)

Joint Directors of Income-tax or Joint Commissioners of Income-tax

Deputy Directors of Income-tax or Deputy Commissioners of Income-tax or Deputy Commissioners of Income-tax (Appeals)

Assistant Directors of Income-tax or Assistant Commissioners of Income-tax

Income-tax OfficerTax Recovery OfficersInspector of income tax

Current members of CBDT:-Member (Income Tax) Member (Legislation and Computerisation) Member (Revenue) Member (Personnel & Vigilance) Member (Investigation) Member (Audit & Judicial)

Source: http://www.incometaxindia.gov.in/ccit/CBDT.asp(last update of 27/11/2009)

Present constitution of CBDTShri S.S.N.Moorthy - ChairmanMumbai Shri Sudhir ChandraMember - (Inv)- Shri Durgesh ShankarMember - (R)Eastern Zone

(West Bengal, Bihar, NER & Orissa)Shri C.S. KahlonMember- (L&C)Central Zone

(Ahmedabad, Pune, MP & Chattisgarh)Shri S.S.KhanMember - (IT)South Zone Shri Narindar SinghMember - (A&J)North Zone (NWR

and Delhi)Shri Shaikh NaimuddinMember -

(P&V)Kanpur,Lucknow,Jaipur

What are powers of the Central Board of Direct Taxes?

It was constituted under the Central Boards of Revenue Act, 1963. It works under the Ministry of Finance.

The Act has assigned main powers and functions in sections 2 (17)A,2(18),11(1)(c), 35(3), 35D(3), 36(1)(iv), 44AA, 80RRA, 80U, 118, 119, 120, 124(2), 127, 132(1),138, 139A(4), 197(2A), 200, 228A, 246, 273A(2), 279, 288, 293B and 295. The Second Schedule and Fourth Schedule

1. Instructions to subordinate authorities.

From time to time the Board may issue such orders, instructions and directions to other income-tax authorities as it may deem fit for the proper administration of the Act.

Such authorities (and all other persons employed in the execution of the Act) shall observe and follow such orders, instructions and directions of the Board.

1-2. when instructions cannot be issued to subordinate authorities

1. Board cannot issue any instruction, direction or order so as to require any income-tax authority to make a particular assessment or to dispose of a particular case in a particular manner.

2.Moreover, the Board cannot issue any direction, order or instruction so as to interfere with the discretion of the Deputy Commissioners (Appeals) or the Commissioners (Appeals) in the exercise of his appellate functions.

JUDICIAL RECOGNITION OF CIRCULARS/ CERTIFICATION ISSED BY THE CENTRAL BOARD OF DIRECT TAXES:-

Binding On Officers Of Income Tax DepartmentWithdrawn CircularsAid To ConstructionContrary Opinion Of High CourtsEarlier OrdersNon Binding Of The CourtBenevolent Circulars

2. Orders issued by way of relaxation of certain provisions under section 119(2)(a) following condition satisfied.

Such orders, instructions or directions may be issued by the Board if it considers it necessary expedient so to do, for the purpose of proper and efficient management of the work of assessment and collection of revenue.

Such orders, etc., may be issued whether by way of relaxation of any of the provisions of sections IISP, 115S, 139, 143, 144, 147, 148, 154, 155, 201(IA), 210, 211, 234A, 234AB, 234C, 271and 273.

Conti…Such orders, etc., may be issued by general or special

orders in respect of any class of incomes or class of cases

Such order, etc., cannot be prejudicial to the assesses.Such orders are the guideline principles

followed by other income- tax authorities in the work relating to assessment or collection of revenue or the initiation of proceedings for the imposition of penalties.

If the Board is of opinion that it is necessary in the public interest so to do, such orders may be published and circulated in the prescribed manner for general information.

3. Orders giving extension of time-limit [Sec. 119(2)(b)]The Board may by general or special order,

authorize any income-tax authority, to admit an application or claim for any exemption, deduction, refund or any other relief under the Act after the expiry of the period specified under the Act.

4 Orders giving relaxation for claiming deduction [Sec. 119(2)(c)]

1.The default in complying with such requirement was due to circumstances beyond the control of the assesses.

2.The assesses has complied with such requirement before the completion of assessment relation to the previous year in which such deduction is claimed.

3. The Central Government shall cause every order issued under section 119(2)( c) to be before each House of Parliament.

What are powers of Director General/Director?

Giving instructions to the Income-tax Officers [sec. 119(2)].

Enquiry or investigation into concealment [sec. 131(IA)].

Search and seizure [sec. 132].To requisite books of account [sec. 132A].Power of survey [sec. 133A].Power to make any enquiry [sec. 135].

What are powers of Commissioners of Income-tax?

The Commissioners of Income-tax are appointed by the Central Government. Generally they are appointed to head the income-tax administration of a specified area. As head of administration, a Commissioner of Income-tax enjoys the following administrative as well as judicial powers and functions under the different provisions of the Act.

Conti… Registration of a charitable trust or institution

[sec. 12A(a)] Appointment of the Income-tax Officers (Class

II) and Inspectors of Income-tax [sec. 117(2)] Instructions to subordinate authorities [sec 119] Assigning jurisdiction of Inspecting Assistant

Commissioners and the Income-tax Officer [sec. 123 and 124] Power of transfer of cases [sec. 127] Assignment of functions to the Inspectors of

Income-tax [sec. 128] Powers regarding discovery, production of

evidence [sec. 131]

Conti… Search and seizure [sec. 132] Other powers to requisite books of account [sec.

132A] Power to make any enquiry [sec. 135] Disclosure of information respecting assesses [sec.

138] Granting sanction for issue of notice to reopen

assessment after the expiry of 4 years[sec. 151(2)] To sanction withholding of refund in certain cases

[sec. 243] Set off of refunds against tax remaining payable

[sec. 245] etc.. Directing the assessing officer to prefer an appeal

to appellate tribunal against the order of the commissioners (appeals) [sec. 253(2)]

Conti…Appeal to high court [sec. 260A]Revision of orders passed by assessing officer

which are prejudicial to the revenue [sec. 263]

Revisions of order passed by subordinate authorities on his own motion or on the application of the assessee [sec. 264]

Reduction or waiver of penalty in certain cases ;sec. 273A]

To award and withdraw recognition to provident funds [schedule IV]

What are powers of Commissioners (Appeals)?

Power regarding discovery or production of evidence, etc. [sec. 131]

Power to call for information [sec. 133]Power to inspect registers of companies [sec. 134]Set off of refunds against tax remaining

payable [sec. 245]Disposal of appeal [sec. 251].Imposition of penalty [sec. 271 and 272A].

What are powers of Joint Commissioners?

The Joint Commissioners are appointed by the Central Government. The main function of this authority is to detect tax evasion and supervise subordinate officers. Under the different provisos of the Act the Joint Commissioner enjoys the following powers, namely

Conti… Approval of orders of additional tax on undistributed profits [sec. 107] Instructions to the Income-tax Officers [sec. 119(3)] Exercise power of the Income-tax Officers [sec. 125A] Powers regarding discovery, production of evidence [sec.

131] Search and seizure [sec. 132] Power to call. information [sec.133] Power to survey [sec. 133A] Power to inspect registers of companies [sec. 134] Power to make any enquiry [sec. 135] Power to hear and examine draft assessment orders and

issue directions [sec. 144B]

What are powers of Income-tax Officers?

While the Income-tax Officers of Class I service are appointed by the Central Government, Income-tax Officers of Class II services are appointed by the Commissioner of Income-tax.

Discovery and production of evidence [sec. 131]Power regarding search and seizure [sec. 132]Power of requisition books of account [sec. 132A]Application of retained assets [sec. 132B]Power to call for information [sec. 133]Power to survey [sec. 133A]Power to inspect registers of companies [sec. 134]

Conti…Allotment of permanent account numbers

[sec.139A]To make assessment [sec. 143 and 144]To impose the penalties; to issue direction for

getting accounts audited [sec. 142]To reassess escaped income [sec.147]Rectification of mistakes [sec. 154]To grant approval for deduction of tax at

source at lower rates of tax [sec. 197]To demand advance payment of tax [sec

210]To grant refunds [sec. 237 & 240]

What are powers Inspector of income tax ?Inspectors of income tax are appointed by

the commissioner of income tax.Have to perform such functions are

assigned to them by the commissioner or any other authority under whom they are appointed to work.

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