Sudhir, Lecturer in Commerce & Management, Indo-American Degree College, Ballari

TH
INCOME TAX - II FOR BBA 6 SEM

Module 5: Assessment Procedure and Income Tax Authorities

Assessments under the income tax ACT, of 1961

Every taxpayer has to furnish the details of his income to the Income-tax
Department. These details are to be furnished by filing the return of income.
Once the return of income is filed by the taxpayer, the next step is the
processing of the return of income by the Income Tax Department. The
Income Tax Department examines the return of income for its correctness. The
process of examining the return of income by the Income Tax department is
called an “Assessment. The assessment also includes re-assessment and best
judgment assessment. Various kinds of assessment under the Income Tax Act,
of 1961 are discussed below.

Types of Assessment
 Self-Assessment.
 Summary Assessment.
 Regular Assessment
 Scrutiny Assessment.
 Best Judgment Assessment.
 Re-assessment/income escaping assessment

Self Assessment under Section 140 A

Before submitting the return Assessee is supposed to find whether he is liable
for any tax or interest. For this purpose, section 140(A) has been introduced in
the Income Tax Act, where any tax is payable based on any return required to
be furnished under sec 139, or sec 142 or 148 or Sec 153A after deducting
 Advance tax if any payable
 TDS/TCS
 Relief u/s 90,91,90A
 MAT credit under 115JAA or 115JD
The Assessee shall pay tax & interest before furnishing a return and proof of
such payment will be accompanied under the return of income. In short, we can
say that the Assessee himself determines the income tax payable. The tax
department has made available various forms for filing income tax returns. The
Assessee consolidates his income from various sources and adjusts the same
against losses or deductions or various exemptions, if any, available to him
during the year. The total income of the Assessee is then arrived at. The
Assessee reduces the TDS and Advance tax from that amount to determine the
tax payable on such income. Tax if still payable by him, is called self-

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assessment tax and must be paid by him before he files his return of income.
This process is known as Self-Assessment.

Summary Assessments under Section 143(1)

In this type of assessment, the information submitted by the Assessee in the
return of income is cross-checked against the information that the income
tax department has access to, it is a type of assessment carried out without any
human intervention, if any tax liability/refund arises on summary assessment,
intimation u/s 143(1) will be sent to Assessee through e-mail. This intimation
should be treated u/s 156(1) or a refund order. No separate demand notice will
be issued. In this process, the reasonableness and correctness of the return are
verified by the department. The return gets processed online, and adjustments
for arithmetical errors, incorrect claims, and disallowances are automatically
done.

Regular Assessment
The income tax department authorizes the assessing officer or income tax
authority, not below the rank of an income tax officer, to conduct this
assessment. The purpose is to ensure that the Assessee has neither understated
his income nor overstated any expense or loss or underpaid any tax.

Scrutiny Assessment under Section 143(3)

Scrutiny Assessment is one of the assessments of the Income Tax Return under
the Income Tax Act. As the name suggests, the Assessing Officer (AO)
critically and thoroughly inspects and examines all the details of the Income
Tax Return of the Assessee to check that such details filed by the Assessee are
correct and genuine. The AO tries to ensure that the Assessee is not using any
illegal practice to avoid tax liability in any manner. The AO also gives the
opportunity of being heard to the Assessee and thus Assessee can produce and
substantiate all the details filled in the ITR with evidence. In case any
discrepancy, disparity, or inconsistency is found in the ITR then the AO is
empowered to charge penalties from the Assessee.

Best Judgment Assessment under Section 144

This type of assessment is made when the Assessee is not complying with the
tax provisions. The A.O., in the absence of sufficient information of the
Assessee, according to the best of his ability, knowledge, and experience makes
such judgment. In short, Best judgment assessment refers to a situation where
the officer computes the tax payable as the Assessee does not comply to
provide or maintain necessary source documents or book of accounts to support
the claim when requested to submit.
In this scenario, the officer computes the tax liability based on his best
judgment. The income tax act specifies certain situations under which the
income tax officer can compute tax liability based on best judgment,
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 When the Assessee does not file an income tax return
 When the Assessee does not respond to the notice requesting the
submission of documents
 The response of the Assessee has crossed the limit permitted by the
central board of direct taxes (CBDT)
 When the officer is not satisfied with the documents provided.

Income Escaping Assessment under Section 177

Income escaping assessment refers to income that has been omitted from the
Income Tax assessment of a particular taxpayer. The proceedings which govern
a case of income escaping assessment can be initiated by the income tax
department if certain incomes have escaped assessment or income has been
assessed at a lower rate or excessive loss or allowances have been allowed. In
such a scenario, the assessing officer is entitled to reassess the assessment of
the relevant assessment year. An assessing officer should not merely act on
rumor or suspicion but rely on substantial evidence before initiating procedures.
The assessing officer must conduct his operations in good faith.
Every Assessee, who earns income beyond the basic exemption limit in a
financial year, must file a statement containing details of his income,
deductions, and other related information. This is called the income tax
return (ITR). Once you as a taxpayer file the income returns, the Income
Tax Department will process it. There are occasions where the return of
an Assessee gets picked for an assessment. The assessment plays an important
role in the examination of the details submitted by a taxpayer by the Income
Tax Department.

Income Tax Return Filing in India

An Income Tax Return (ITR) is a form primarily used for filing details about
your income and the applicable tax to the Income Tax Department of India. The
Indian income tax laws state that the IT return should be filed by every
individual and business earning an income. It assists in declaring taxable
income, tax liability, and tax deductions claims, if any.

It is mandatory for Firms or corporations, Hindu Undivided Families (HUFs),

and self-employed or salaried individuals to file income tax returns before the
due date otherwise, a penalty will be levied for late filing. Understanding what
Income Tax Return is ensures compliance with Indian tax laws.

What is Income Tax Return Filing?

ITR filing is the process through which a taxpayer must record his total income
earned during the fiscal year. Individuals can file their taxes through the Income
Tax Department's official portal. It has been notified in seven different forms.
Types of ITRs
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There are nearly nine different types of Income Tax Return forms i.e. ITR
forms available for a taxpayer to use while filing his taxes. Individuals must,
however, use only the following forms for filing returns, according to the
Central Board of Direct Taxes in India-

 ITR 1 or Sahaj
It should be used by individuals earning an annual income of less than Rs 50
lakh through salary/pension and from only 1 house property.

 ITR 2
The ITR-2 Form is a type of ITR form used by individuals who have earned
money from the sale of assets or property. This form is also beneficial for
people who earn money in countries other than India. Individuals or Hindu
Undivided Families (HUF) can usually use this form to file their ITR.

 ITR 2A
The ITR-2A form is a new income tax return form that was introduced in the
2015-16 tax year. A Hindu Undivided Family (HUF) or an individual
taxpayer can utilize this form.

 ITR 3
The ITR-3 Form is useful for an individual taxpayer or a Hindu Undivided
Family who is a partner in a firm but does not conduct any business via the
firm. This also applies to those who do not make any money from the firm's
operations.

 ITR-4 or Sugam
This sort of ITR form is useful for persons who own a business or earn a
living through a vocation. This form is appropriate to all types of businesses,
undertakings, or professions, with no income restriction.

 ITR-4S
The ITR-4S form could be used to file income tax returns by any person or
Hindu Undivided Family (HUF).

 ITR 5
The ITR-5 form is exclusively used to file income tax returns by the Firms,
Local authorities, Co-operative societies, Artificial Judicial persons, Body of
individuals.

 ITR 6
Except for firms or organizations that claim tax exemption under Section 11,
all companies utilize the ITR-6 form. Organizations that can
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claim tax exemptions under Section 11 are those whose income is derived
from property utilized for religious or charitable purposes. This particular
income tax return form can only be filed online.

 ITR 7
This form is required to be used by entities claiming an exemption as
colleges, universities, scientific research institutions, religious or charitable
trusts, political parties, etc.

Who Should File Income Tax Returns?

The following are the individuals who should file Income Tax Returns:
 Assessee with a total income of Rs. 5 Lakhs or more.
 Individual/HUF resident with assets outside of India.
 An Assessee is required to file returns under Section 139 (4B) (ITR 7).
 The Assessee must provide the assessing officer with a notice under Section
11(2) (a).
 A person who claims relief or deductions under sections 90 or 90A.
 A person who is a resident and has signing authority over any account
situated outside of India.
 Every business.
 An Assessee who is obliged by the Act to provide an audit report stated in
sections 10(23C) (IV), 10(23C) (v), 10(23C) (VI), 10(23C) (via), 10A, 12A
(1) (b), 44AB, 80IA, 80IB, 80IC, 80ID, 80JJAA, 80LA, 92E, or 115JB.
 AOP, BOI, Local Authority (ITR 5), Artificial Juridical Person, or
Cooperative Society that does not fall under the terms of Section 44AB.

Loss Return: Section 139 (3)

A loss return is a communication forwarded by a taxpayer to the Income Tax
department, informing that there is a loss incurred for a financial year.
Typically, the purpose of filing a loss return is to enable the taxpayer to carry
forward the loss to future periods. Losses are inevitable while pursuing a
business. Loss return filing provides the option to carry forward losses, as well
as the option of setting-off against income arising in the future years. Setting
off losses means the setting of losses in one head, against gains in another. Loss
return can be filed by an Assessee who sustained a loss in any previous year
under the head “Profits and gains of business or profession”, or under the head
“Capital gains”, and claims those losses to be carried forward. Filing of income
tax returns is mandatory for a company or firm, but not compulsory in the case
of individuals or other taxable entities. However, loss return filing must be
submitted before the due date in order to carry forward the losses.

Belated Return: Section 139(4)

A belated return under section 139(4) of the Income Tax (I-T) Act is a return
filed after the passing of the deadline. The taxpayers who failed to file a return
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on or before July 31 can file a belated return. People are allowed to file a
belated return by December 31 of the relevant assessment year.

Return by Trusts: Section 139(4A)

Return under section 139(4A) is required to be filed by every person in receipt
of income derived from property held under trust or other legal obligation
wholly for charitable or religious purposes or in part only for such purposes.

Return by Political Parties: Section 139(4B)

According to Section 139(4B) of the Income Tax Act, a political party must file
a return of income if its income (before claiming exemption) under Section 13A
exceeds the basic exemption limit (without considering the exemption under
Section 13A). The tax rate applicable for political parties is the same as that for
a normal resident individual. The return of income must be filed and signed by
the Chief Executive Officer of the political party for the relevant financial year.

Return by Certain associations or Institutions: Section 139(4C)

Section 139(4C) includes those institutions for which it is necessary to file a tax
return if the maximum allowable limit is beyond the maximum cap of tax
exemption, which shall exclude other exemption benefits enjoyed by the
institution.

Return by Institutions, University or College etc: Section 139(4D)

Section 139(4D) of the Income Tax Act pertains to universities, colleges, and
other institutions that are not required to file tax returns of income and loss
under any other provision in this section. Specifically, it applies to institutions
referred to in Section 35(1)(ii) and Section 35(1)(iii). If an institution falls
under this category, it must furnish its return of income or loss every previous
year, similar to other taxpayers. However, if their income is unconditionally
exempt under various clauses of Section 10, they may use the relevant ITR
form for filing their return.

Revised Income Tax Return: Section 139(5)

If a person who has furnished a return under section 139(1) or section 139(4)
discovers any omission or error, they may submit a revised return before the
end of the relevant assessment year or before the assessment is completed,
whichever is earlier. The revised return will replace the original return from the
date the original return was filed. A loss return filed belatedly under section
139(4) can be revised under section 139(5), but the loss cannot be carried
forward since the original return was filed late.

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Updated Return: Section 139(8A)
Under the Income Tax Act allows you a chance to update your ITR within two
years. Two years will be calculated from the end of the year in which the
original return was filed. ITR-U was introduced to optimize tax compliance by
taxpayers without provoking legal action.

Defective Returns: Section 139(9)

A tax return can be deemed to be defective under Section 139(9) if documents
are missing. The taxpayer shall make the judgment of a defective return, and
the taxpayer shall be duly notified via a simple letter. A time slot of fifteen days
shall be given to rectify the problem and produce the missing documents. The
period might also be extended upon the request of the taxpayer providing valid
reasons. Thereby, one must note the following list of documents for your file to
avoid being deemed defective.

Due Dates for Filing Return of Income U/s 139(1)

Due Date for Tax Filing –
Category of Taxpayer
AY 2023-24
Individual / HUF/ AOP/ BOI
(books of accounts not required to be 31st July
audited)
Businesses (Requiring Tax Audit) 31st October
Company 30th September

Section 234A of Income Tax Act applies to the late filing of income tax
returns. The interest rate of 1% per month or part of a month on the
outstanding tax amount is applied. Section 234B applies to default in
payment of advance tax installments and comes with an interest rate of 1%
per month or part of a month on the outstanding advance tax installment.
Section 234C applies to the failure to pay tax liability even after assessment
by the Income Tax Department. It imposes a tax at the interest rate of 12%
per annum on the outstanding tax liability.

Intimation under Section 143(1)

Intimation under Section 143(1) must be sent within nine months from the
end of the financial year the return is filed. For example, if a taxpayer files
a return for the financial year 2023-24 in July 2024, the intimation can be
sent anytime until December 31, 2025. If the taxpayer does not receive any
intimation within this period, it indicates that no adjustments have been
made to the filed return, and there is no change in tax liability or refund. In
this case, the acknowledgment of the filed return is considered the
intimation under Section 143(1).

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Types of Interests Imposed Under Section 234
The Income Tax Act, Section 234, deals with different interest charges
levied for late filing or late payment of taxes. Here’s a breakdown of the
three main types of interest imposed under this section:

Interest for Delay in Filing Tax Return (Section 234A)

Interest for delay in filing tax returns under Section 234A is applicable if
you fail to file your income tax return by the due date. The interest charged
is at a rate of 1% per month (or part of a month) on the tax amount payable.
This simple interest is calculated on the outstanding tax liability.

Interest for Defaults in Payment of Advance Tax (Section 234B)

If you fail to pay your advance tax installments or pay less than 90% of
your total tax liability throughout the financial year, you must pay the
interest for defaults in payment of advance tax under Section 234B. Like
filing delay, interest is charged at 1% per month (or part of a month) on the
outstanding advance tax amount.

Interest for Deferment of Advance Tax (Section 234C)

Interest on deferment of advance tax under Section 234C is applied in a
specific condition where you are assessed tax dues after the financial year
ends (due to department processing or other reasons). This interest is
charged at a rate of 12% per annum on the outstanding tax liability.

Permanent Account Number (PAN): Section 139A

The Income Tax department issued as 10 character alphanumeric number to
each Assessee to identity the returns, tax payments challans, quick disposal of
their refund claims or assessments

PAN is to be obtained by following persons:

a) Every person if his total income or the total income of any other person in
respect of which he is assessable during the previous year exceeds the
maximum amount which is not chargeable to tax.
b) A charitable trust who is required to furnish return under Section 139(4A)
c) Every person who is carrying on any business or profession whose total sale,
turnover, or gross receipts are or is likely to exceed five lakh rupees in any
previous year
d) Every importer/exporter who is required to obtain Import Export code
e) Every person who is entitled to receive any sum/income after deduction of
tax at source
e) Any person who is liable to pay excise duty or a producer or manufacturer of
excisable goods or a registered person of a private warehouse in which
excisable goods are stored and an authorized agent of such person

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f) Persons who issue invoices under Rule 57AE requiring registration under
Central Excise Rules, 1944
g) A person who is liable to pay the service tax and his agent
h) Persons registered under the Central Sales Tax Act or the general sales tax
law of the relevant state or union territory
i) Every person who intends to enter into specified financial transactions in
which quoting of PAN is mandatory
j) A person not covered in any of the above can voluntarily apply for PAN.

Transactions quoting PAN is mandatory (Compulsory)

SN Nature of Transactions Value of Transactions
1. Sale or purchase of a motor vehicle or All such Transactions
vehicle, as defined in clause (28) of
section 2 of the Motor Vehicles Act,
1988 (59 of 1988) which requires
registration by a registering authority
under Chapter IV of that Act, other than
two wheeled vehicles.
2. Opening an account [other than a time- All such Transactions
deposit referred to at Sl. No.12 and a
Basic Savings Bank Deposit Account]
with a banking company or a
cooperative bank to which the Banking
Regulation Act, 1949 (10 of 1949),
applies (including any bank or banking
institution referred to in section 51 of
that Act).
3. Making an application to any banking All such Transactions
company or a cooperative bank to
which the Banking Regulation Act,
1949 (10 of 1949), applies (including
any bank or banking institution referred
to in section 51 of that Act) or to any
other company or institution, for issue
of a credit or debit card.
4. Opening of a demat account with a All such Transactions
depository, participant, custodian of
securities or any other person registered
under sub-section (1A) of section 12 of
the Securities and Exchange Board of
India Act, 1992 (15 of 1992).
5. Payment to a hotel or restaurant against Payment in case of an Amount
a bill or bills at any one time. Exceeding Rs. 50,000
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6. Payment in connection with travel to Payment in case of an Amount
any foreign country or payment for Exceeding Rs. 50,000
purchase of any foreign currency at any
one time.
7. Payment to a Mutual Fund for purchase Amount Exceeding Rs. 50,000
of its units.
8. Payment to a company or an institution Amount Exceeding Rs. 50,000
for acquiring debentures or bonds
issued by it.
9. Payment to the Reserve Bank of India, Amount Exceeding Rs. 50,000
constituted under section 3 of the
Reserve Bank of India Act, 1934 (2 of
1934) for acquiring bonds issued by it.
10. Deposit with,— Cash deposits,—
1. a banking company or a co- 1. Exceeding Rs. 50,000
operative bank to which the during any one day; or
Banking Regulation Act, 1949 2. aggregating to more
(10 of 1949), applies (including than Rs. 2,50,000
any bank or banking institution during the period 09th
referred to in section 51 of that November, 2016 to 30th
Act); December, 2016.
2. Post Office.
11. Purchase of bank drafts or pay orders or Payment in case of an Amount
banker's Cheques from a banking Exceeding Rs. 50,000
company or a co-operative bank to
which the Banking Regulation Act,
1949 (10 of 1949), applies (including
any bank or banking institution referred
to in section 51 of that Act).
12. A time deposit with,— Amount exceeding Rs.50,000
i. a banking company or a co- or aggregating to more than
operative bank to which the Rs. 5,00,000 during a
Banking Regulation Act, 1949 financial year.
(10 of 1949), applies (including
any bank or banking institution
referred to in section 51 of that
Act);
ii. a Post Office;
iii. a Nidhi referred to in section 406
of the Companies Act, 2013 (18
of 2013); or
iv. a non-banking financial company
which holds a certificate of
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registration under section 45-IA
of the Reserve Bank of India Act,
1934 (2 of 1934), to hold or
accept deposit from public.
13. Payment for one or more pre-paid Payment in cash or by way of
payment instruments, as defined in the a bank draft or pay order or
policy guidelines for issuance and banker's Cheque of an amount
operation of pre-paid payment aggregating to more than Rs.
instruments issued by Reserve Bank of 50,000 in a financial year.
India under Section 18 of the Payment
and Settlement Systems Act, 2007 (51
of 2007), to a banking company or a co-
operative bank to which the Banking
Regulation Act, 1949 (10 of 1949),
applies (including any bank or banking
institution referred to in section 51 of
that Act) or to any other company or
institution.
14. Payment as life insurance premium to Amount aggregating to more
an insurer as defined in clause (9) of than Rs. 50,000 in a financial
section 2 of the Insurance Act, 1938 (4 year.
of 1938).
15. A contract for sale or purchase of Amount exceeding
securities (other than shares) as defined Rs.1,00,000 per transaction.
in clause (h) of section 2 of the
Securities Contracts (Regulation) Act,
1956 (42 of 1956).
16. Sale or purchase, by any person, of Amount exceeding
shares of a company not listed in a Rs.1,00,000 per transaction.
recognized stock exchange.
17. Sale or Purchase of any immovable Amount exceeding Rs.
Property. 10,00,000 (Rs.10 Lakh) or
valued by stamp valuation
authority referred to in section
50C of the Act at an amount
exceeding Rs.10 Lakh.
18. Sale or purchase, by any person, of Amount exceeding
goods or services of any nature other Rs.2,00,000 per transaction.
than those specified at Sl. No. 1 to 17 of
this Table, if any.

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Tax Deduction Account Number (TAN)

Tax Deduction Account Number or Tax Collection Account Number is a 10-
digit alpha- numeric number issued by the Income-tax Department (we will
refer to it as TAN). TAN is to be obtained by all persons who are responsible
for deducting tax at source (TDS) or who are required to collect tax at source
(TCS).

TAN must be obtained by all persons responsible for deducting tax at source or
who are required to collect tax at source. It is compulsory to quote TAN in
TDS/TCS return, any TDS/TCS payment challan, TDS/TCS certificates and
other documents as may be prescribed in communications with the
ITD. However, a person required to deduct TDS as per Section
194IA or Section 194IB or Section 194M, can quote PAN in place of TAN.

Income Tax Authorities

There shall be the following classes of income-tax authorities for the purposes
of this Act, namely:-
(a) the Central Board of Direct Taxes constituted under the Central Boards of
Revenue Act, 1963 (54 of 1963),
(b) Directors-General of Income-tax or Chief Commissioners of Income-tax,
(c)Directors of Income-tax or Commissioners of Income-tax or Commissioners
of Income-tax (Appeals) [ Additional Directors of Income-tax or Additional
Commissioners of Income-tax or Additional Commissioners of Income-tax
(Appeals),] [ Inserted by Act 32 of 1994, [Joint Directors of Income-tax or Joint
Commissioners of Income-tax,]
(d) [ Deputy Directors of Income-tax or Deputy Commissioners of Income-tax
or Deputy Commissioners of Income-tax (Appeals),
(e) Assistant Directors of Income-tax or Assistant Commissioners of Income-
tax,
(f)Income-tax Officers,
(g)Tax Recovery Officers,
(h)Inspectors of Income-tax.

Appointment of income-tax authorities: Section 117

(1) The Central Government may appoint such persons as it thinks fit to be
income-tax authorities.
(2) Without prejudice to the provisions of sub-section (1), and 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.

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(3) 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.

Control of income-tax authorities: Section 118

The Board may, by notification in the Official Gazette, direct that any income-
tax authority or authorities specified in the notification shall be subordinate to
such other income-tax authority or authorities as may be specified in such
notification.

Powers of Income Tax Authorities (Section 119)

1. The Board may issue orders/ instructions/ directions to other income tax
authorities for proper administration of the Act.
2. Such orders/ instructions/ directions are binding on all subordinate
authorities.
3. No instruction shall be issued by the Board to:
a) Make a particular assessment or dispose of a particular case in a particular
manner;
b) Interfere with the discretion of CIT (Appeals) in the discharge of his
appellate functions.
4. The Board may issue instructions for -
a)Proper and efficient management of work of assessment.
b) Collection of Revenue/ Issue/ Intimation of Penal proceedings
5. Powers of the Board with regard to relaxation of any provisions of law:
a)Relaxation of any provisions of section 139/143/144
147/148/154/155/158BFA/ 201 210211/234A/234B/234C/271/273 except 115P
and 115S.
b ) Further, general or special orders may be issued by the CBDT by way of
relaxation of the provisions of sections 115WD, 115WE, 115WF, 115WG,
115WH, 115WJ and 115WK relating to assessment of Fringe Benefit Taxation.
C) To avoid genuine hardship to assesses - acceptance of an application of
claim of any exemptions, deductions, refund or any relief after the expiry of the
prescribed period under the Act.
d) To avoid genuine hardship to Assessee - by relaxing any requirements of
Chapter IV or VI A.
6. Duties of the Board: Before relaxing any provision in the Assessee's favor,
the Board should satisfy that:
a) Non-compliance was due to any reasons beyond the control of the Assessee.
b) The Assessee complied with such requirements of the Act before the
completion of assessment.

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Powers of the Central Board of Direct Taxes (CBDT) under the various
provisions of the Act

Section Powers
2 (17) Declare any Institution, Association or Body to be a
company.

2 (18) Declare a company having no share capital as company in

which public is substantially interested.
11(1)(c) Direct that income from house property held under Trust
will not be included in the Total Income of the person in
receipts of such income.
44AA Notify compulsory maintenance of accounts for any
profession.
8ORRA To prescribe the field in which the person may have
specialized knowledge and experience to be called a
'Technician'.
8OU Make rules and specify the permanent physical disability
for deduction U/s 80U
118 Exercise control over Income-Tax Authorities
119 Issue order, instructions and directions to subordinate
authorities. Exceptions:
a. Order, instruct or direct any Income Tax Authority to
make assessment or to dispose a particular case in a
particular manner.
b. Interfere with the discretion of the CIT (Appeals) in the
exercise of appellate functions.
120 Direct Income Tax Authorities regarding exercise of their
powers and functions
132 Specify the Income Tax Authorities who are empowered
to issue summons for search and seizure.
138 Require any authority, body or officer, to disclose
information regarding the Assessee.
246 Transfer or to authorize the CIT to transfer any appeal
pending before First Appellate Authority.
288 Prescribe educational qualifications of Authorized
Representatives
293B Condone delay in obtaining Board approval, wherever
such approval is necessary.
295 Make rules for carrying out the purposes of the Act,
subject to Central Government Control

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 Sudhir, Lecturer in Commerce & Management, Indo-American Degree College, Ballari

Special Powers U/s 119 (2)

Section Powers
(a) Issue orders in certain cases by way of relaxation or
otherwise to "any class of Incomes or fringe benefits"
(b) Extend time limit to admit an application or claim
(c) Relax any requirement of chapter IV or Chapter VIA

Powers of Director General / Director of Income Tax

Section Powers
117 Appoint IT authority below the rank of AC/DC
119(2) Give instructions to Income Tax Officers
120 Direct the JC, AC, Ad to function and assume powers
of A.O.
127 Transfer cases from one or more Assessing Officer
subordinate to him to any other Assessing Officer
who is subordinate to him.
131(1A) Enquire, if there exists any reasons to suspect
concealment of income
132(1) Authorize any JD/JC/DD/DC/AD/AC/AO to conduct
search and seizure.
132A Requisition of books of accounts etc.
133A Power of Survey and collect useful and relevant
information
135 Make enquiry.

Powers of the Commissioner/ Chief Commissioner of Income Tax

In addition to the powers mentioned above, the Commissioner/ Chief
Commissioner enjoys the following additional powers:
Powers Section
131 Discovery, production of evidence, etc.
151(1) Sanction re-opening of assessments after the expiry of four
years
253(2) Direct A.O. to prefer appeal to Tribunal against the order of the
First Appellate Authority.
264 Revise order passed by a subordinate authority not prejudicial to
the interest of the Assessee.

Powers of Joint Commissioner of Income Tax

Section Section
131 Discovery, production of evidence, etc.
131(A) Enquire, if reasons exist to suspect concealment of income
132 Search and Seizure
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 Sudhir, Lecturer in Commerce & Management, Indo-American Degree College, Ballari
133 Call for information
133A Survey
133B Collect information
134 Inspect register of companies
135 Make an enquiry
144A Issue directions during the course of assessment proceedings.
Sanction re-opening of assessment after expiry of 4 years, if
the assessment is any section other than 143(3) and 147, made
under

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