Income Tax Authorities

INCOME TAX
AUTHORITIES
Income Tax Department
 Their Vision
 Their Mission
 Their Values
Who are income tax authorities?
(Sec 116)
 (a) the Central Board of Direct Taxes.
 (b) Directors-General of Income-tax.
 (c)Directors of Income-tax or Commissioners of

Income-tax.
 (d)Deputy Directors of Income-tax or Deputy

Commissioners of Income-tax.
 (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.
 (i) Additional Directors of Income tax.
 (j) Joint Directors of Income tax and Joint

Commissioners.
Importance of the 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.
Appointment of Income Tax
Authorities
 Power of Central Government.
 Powers of the Board and other High

Authorities.
 Powers to appoint executive and ministerial

staff.
CENTRAL BOARD OF DIRECT
TAXES (CBDT)
 Since 1 January 1964 the Central Board of

Direct Taxes (CBDT) has been charged with
all matters relating to various direct taxes
in India and it derives its authority from
Central Board of Revenue Act 1963.
Powers of CBDT
>> Instructions to subordinate authorities
>> Orders issued by way of relaxation of certain

provisions under section 119(2)(a)
>> Orders giving extension of time limit [Sec. 119(2)

(b)]
>> Orders giving relaxation for claiming deduction

[119(2)(c)]
Director General/Chief
Commissioner 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 authorites below the rank
of assisstant 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
Commissioners/Directors of Income
Tax
 Appointment:
By central govt.
 Jurisdiction:
Determined by central board
of direct taxes.
 Functions :
The Board assigns functions
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.
Deputy Commissioner/Assistant
commissioners of income tax.
 Appointment:
By central govt.
 Jurisdiction:
Determined by central
board of direct taxes.
 Functions :
The Board assigns functions by general or special order.
 Powers:
 Empowered to accord to sanction to levy

additional income tax.
 Power to exercise powers of an assessing
officer.
 Cancel registration of a firm.
 Power to issue instructions to assessing
officer.
Joint commissioner
 Functions:
 Detect tax evasions and supervise
subordinate officers.
 Powers:
 Accord approval to adopt fair market value as full
consideration – section 52.
 Instructions to income tax officers – section 119 (3).
- Exercise powers of income tax officers
section 125 a.
- Power to call information section 133.
- Power to inspect registers of companies
section 134.
- Power to make any enquiry section 135.
Assisstant Commissioner/ Income
tax officer
Jurisdiction:
 Determination of CBDT.
 Instructions by Director General.
 Concurrent jurisdiction .
 Disputes regarding jurisdiction.
 Jurisdiction not to be disputed.

Powers:
 Power of civil court.

 Powers of search and
 seizure
 Power of assessment.
 Power to call
 information.
 Power of survey.
 Power to inspect registers of companies.
Income tax officers
 Class I service - appointed by central govt.
 Class II service - appointed by commissioner
of income tax.
 Powers, functions and
duties of the income

tax officer.
Search and seizure and Income
Tax Raid
Under the Income Tax Act, the Search and

Seizure operations are a carefully and secretly
devised plan of action on the basis of authentic
and bonafide information and material
(something more than a rumor and gossip),
which may be gathered on its own or given by
some informer.
 The authorities can exercise these powers when due
to the information in their possession; they have firm
reason to believe :
 Any person to whom a summon or notice has been or might
be served, has failed or would not produce the books of
accounts or other documents as called for.
 Any person is in possession of money, bullion, jewellery or
such property which has not been disclosed.
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The tax payer has the following rights in case of search-
 Examining the search warrant which must clearly specify the name of the party
to be searched and be duly signed by the officer. The search warrant issued in
the name of the firm cannot be used to seize assets of individual partners.
 Calling two or more respectable inhabitants of the locality to act as witnesses.
 Verifying the identity and make personal search of each member of the search
party.
 Calling a doctor in case of emergency.
 Inspect seals placed on various objects
 Inspect and take photocopies of the seized books of account and documents.
Income tax raid
 What leads to income tax raids, searches and seizures?
 The main reasons are non-compliance with summons under

Section 131(1) of the Income Tax Act, 1961, or the possession
of undisclosed property or income. It is therefore absolutely
necessary for a current income tax assessee or a likely income
tax assessee to comply with the summons or notice issued by
the Assessing Officer, or any other such authorised person.
 A tax raid may also be conducted against a person in possession

of undisclosed income or property not belonging to him but to
someone else.
5 steps to prevent an Income tax
raid
 1. Make correct disclosure of income and wealth in
returns.
 2. Comply with summons or notices to prevent a tax
raid.
 3. How to declare exempted or non-taxable income
and wealth.
 4. Preserve important vouchers and other
documentary evidence for the acquisition of assets.
 5. How to prevent an income tax raid on lockers, and
safe deposit vaults.
Income Tax raid in Himesh Reshamiya’s
house
- Taxman came visiting his house in

Mumbai.
- Come under the scrutiny of the Income Tax

Department for allegedly paying less service tax.
- The intensive survey of his residence is part of the

verification process.
Disclosure of information regarding
assesses to certain authorities
(Section 138)
 The Board or any other authority so authorised by
Board, may furnish or cause to be furnished any
information which the income tax authorities have
obtained while performing their duties to any officer,
authority or body performing any function under any
law relating to imposition of tax,
duty or cess or in foreign exchange
dealings or any other authority so
notified.
Quick facts..
 The Karnataka & Goa Region is within the
administrative and cadre control of the Chief
Commissioner of Income-tax, Bangalore.
 The Region of Karnataka and Goa has at its apex five
Chief Commissioners of Income-tax and Director
General of Income-tax .
 The Chief Commissioners of Income Tax are
stationed at Bangalore, Hubli & Panaji, while the
Director General of Income Tax is stationed at
Bangalore. Besides, the Region has 24 Administrative
& 13 Appellate Commissioners of Income Tax.
THE END

Income Tax Authorities

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Income Tax Authorities

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INCOME TAX

 (b) Directors-General of Income-tax.

 (c)Directors of Income-tax or Commissioners of

 (d)Deputy Directors of Income-tax or Deputy

 (e)Assistant Directors of Income-tax or Assistant

 (g)Tax Recovery Officers.

 (h) Inspectors of Income-tax.

 (i) Additional Directors of Income tax.

 (j) Joint Directors of Income tax and Joint

 Primary authority who initiates proceedings

 Orders passed by him can be challenged only

 Powers of the Board and other High

 Powers to appoint executive and ministerial

 Since 1 January 1964 the Central Board of

>> Orders issued by way of relaxation of certain

>> Orders giving extension of time limit [Sec. 119(2)

>> Orders giving relaxation for claiming deduction

 Commissioner may exercise powers of an assessing

 Empowered to accord to sanction to levy

 Instructions by Director General.

 Disputes regarding jurisdiction.

 Jurisdiction not to be disputed.

 Power of civil court.

duties of the income

Under the Income Tax Act, the Search and

 The main reasons are non-compliance with summons under

 A tax raid may also be conducted against a person in possession

- Taxman came visiting his house in

- Come under the scrutiny of the Income Tax

- The intensive survey of his residence is part of the

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