Income Tax Authorities, Powers and Functions under the Income Tax Act, 1961
1. Classes of Income Tax Authorities (Section 116) According to Chapter XIII, Section 116 of the Income Tax
Act, 1961, the administrative hierarchy comprises the following classes of income-tax authorities:
• Central Board of Direct Taxes (CBDT) constituted under the Central Boards of Revenue Act, 1963.
• Principal Directors General or Principal Chief Commissioners of Income-tax.
• Directors-General or Chief Commissioners of Income-tax.
• Principal Directors or Principal Commissioners of Income-tax.
• Directors, Commissioners, or Commissioners of Income-tax (Appeals).
• Additional Directors, Additional Commissioners, or Additional Commissioners (Appeals).
• Joint Directors or Joint Commissioners.
• Deputy Directors, Deputy Commissioners, or Deputy Commissioners (Appeals).
• Assistant Directors or Assistant Commissioners.
• Income-tax Officers (ITOs) and Tax Recovery Officers (TROs).
• Inspectors of Income-tax.
2. Appointment, Control, and Jurisdiction (Sections 117 to 129)
• Section 117 (Appointment): The Central Government appoints these authorities and may authorize the
CBDT or higher-ranking officers to appoint executive staff and authorities below the rank of Assistant
Commissioner.
• Section 118 (Control): The CBDT dictates the strict subordination of these authorities through official
notifications.
• Section 119 (Instructions): The CBDT can issue orders, instructions, and directions to subordinate
authorities for proper administration. However, it cannot compel an authority to make a specific assessment
outcome or interfere with the discretion of the Commissioner (Appeals). It may also relax statutory
requirements to avoid genuine hardships.
• Section 120 (Jurisdiction): Authorities exercise functions based on CBDT directions regarding territorial
area, persons, incomes, or classes of cases.
• Section 124 (Assessing Officers): An Assessing Officer holds jurisdiction over persons carrying on a
business or profession, or residing within their assigned territorial area.
• Sections 127 & 129: Authorities can transfer cases from one subordinate to another. A succeeding authority
can continue any pending proceedings from the exact stage left by a predecessor.
3. Core Powers of Income Tax Authorities (Sections 131 to 138)
• S131: Discovery and Evidence: Authorities possess the exact powers of a formal civil court under the
Code of Civil Procedure, 1908. This comprehensively includes enforcing attendance on oath, compelling
the production of books of account, and issuing commissions.
• S132: Search and Seizure: Authorized officers can lawfully enter and search premises, break open locks,
physically search persons, and seize undisclosed books, money, bullion, or jewellery. Constructive seizing
under S132(1) applies strictly when actual physical possession cannot be taken, whereby an official order
prohibiting removal is served.
• S132A: Requisition of Books of Account: Authorities can formally requisition books or valuable assets
from other government authorities if they represent undisclosed income.
• S132B: Application of Seized Assets: Seized assets may be systematically applied to discharge existing tax
liabilities or final liabilities determined upon assessment completion.
• S133: Power to Call for Information: Authorities can legally demand crucial financial information from
firms, Hindu Undivided Families, trustees, and banking companies relevant to any inquiry or proceeding.
• S133A: Power of Survey: Authorities can enter business or professional premises strictly during business
hours to meticulously inspect accounts, verify cash or stock, and record statements. Cash or stock cannot be
removed during a survey.
• S133B & S133C: Information Collection: S133B empowers authorities to conduct door-to-door surveys
to collect required information. S133C allows the formal issuance of notices to call for information to
accurately verify tax compliance.
• S134: Inspect Registers: Authorities possess the absolute power to inspect and manually copy company
registers of members or debenture holders.
• S135: Powers of Higher Authorities: Principal Directors General and Chief Commissioners are fully
competent to make any independent statutory enquiry under this Act.
• S136 & S138: Judicial Proceedings and Disclosure: Proceedings before tax authorities are legally deemed
judicial proceedings. S138 allows authorities to transparently disclose assessee information to other
government departments if it serves the greater public interest.
4. Specific Functions by Rank
Specific Powers and Functions of Tax Authorities
• Central Board of Direct Taxes (CBDT): The CBDT is the apex administrative body. It declares entities as
companies, perfectly determines the jurisdiction of authorities, empowers the IT department to conduct
raids, issues binding instructions to subordinates, frames rules for PAN allotment, and has the exclusive
power to condone delays to prevent genuine taxpayer hardships.
• Principal Chief Commissioner / Commissioner (CIT): They formally register charitable trusts, appoint
Class II officers and Inspectors, strictly assign jurisdictions, and transfer cases. They legally hold immense
revisionary powers under S263 to revise orders passed by Assessing Officers that are erroneous and highly
prejudicial to state revenue. They also withhold refunds and successfully grant sanctions to reopen
assessments after four years.
• Principal Director General / Director: They appoint authorities below the rank of Assistant
Commissioner, systematically investigate concealment of income, legally authorize search and seizure
operations, order departmental surveys, and smoothly transfer cases from one subordinate to another.
• Commissioner (Appeals): They are the primary independent appellate authority. They possess immense
powers to discover evidence, call for information, carefully inspect company registers, and successfully
dispose of appeals by confirming, reducing, enhancing, or completely annulling the assessment. They can
also impose specific penalties.
• Joint Commissioner: They formally approve orders for additional tax on undistributed profits, strictly
instruct ITOs, exercise powers of the ITO, independently conduct searches, seizures, and surveys, and can
permanently cancel the statutory registration of a firm.
• Income Tax Officers (ITO) & Tax Recovery Officers (TRO): Assessing Officers strictly determine exact
tax liability, thoroughly assess escaped income under S147, accurately rectify mistakes under S154, and
grant refunds. TROs explicitly execute the recovery of tax arrears through the attachment and sale of the
defaulting assessee's movable and immovable properties
7 MAARKIncome Tax Authorities Under Income Tax Act, 1961
Chapter XIII of the Income Tax Act, 1961, deals with the administrative framework of direct taxation.
Specifically, Section 116 mandates the constitution of various classes of income-tax authorities. These
authorities are hierarchically arranged to ensure proper execution, seamless administration, and efficient
collection of direct taxes.
Classes of Income Tax Authorities (Section 116) According to Section 116, the following are the statutory
authorities:
1. Central Board of Direct Taxes (CBDT): It is the highest administrative authority, constituted under the
Central Boards of Revenue Act, 1963.
2. Principal Directors General or Principal Chief Commissioners of Income-tax: They are the topmost
executive authorities overseeing vast tax jurisdictions.
3. Directors-General or Chief Commissioners of Income-tax: They report to the principal officers and
manage significant tax divisions.
4. Principal Directors or Principal Commissioners of Income-tax: They hold major administrative and
revisionary powers within their designated areas.
5. Directors or Commissioners of Income-tax or Commissioners of Income-tax (Appeals): They are
responsible for administrative duties and disposing of taxpayer appeals.
6. Additional Directors or Additional Commissioners or Additional Commissioners of Income-tax
(Appeals): They assist the commissioners and manage delegated assessments.
7. Joint Directors or Joint Commissioners of Income-tax: They provide approvals and oversee Assessing
Officers' actions.
8. Deputy Directors or Deputy Commissioners or Deputy Commissioners of Income-tax (Appeals): They
act as senior Assessing Officers managing complex tax assessments.
9. Assistant Directors or Assistant Commissioners of Income-tax: They are primary level Assessing
Officers handling regular income tax assessments.
10. Income-tax Officers (ITOs): They are fundamental Assessing Officers directly involved in the assessment
of total income, tax liability determination, and issuing demand notices.
11. Tax Recovery Officers (TROs): They are exclusively empowered to execute recovery proceedings for
unpaid tax arrears, including attaching properties and garnishing bank accounts.
12. Inspectors of Income-tax: They form the foundational executive staff, appointed to assist higher
authorities in field inquiries, surveys, and gathering crucial taxpayer information.
All of these specified authorities are legally appointed by the Central Government to strictly enforce the
statutory provisions, permanently protect government revenue, successfully prevent tax evasion, and
systematically facilitate taxpayer compliance across India
The Central Goods and Services Tax Act, 2017: Officers under the Act, Powers and Functions
Chapter II of the Central Goods and Services Tax (CGST) Act, 2017, comprehensively details the
administrative hierarchy, explicitly covering the appointment, powers, and functions of various tax officers.
These statutory provisions (Sections 3 to 6) are fundamentally essential for ensuring the proper administration,
strict regulation, and seamless enforcement of the Goods and Services Tax across the entire country.
1. Classes of Officers Under the Act (Section 3) To systematically administer the new indirect tax regime, the
Government shall, by official notification, strictly appoint the following comprehensive classes of officers for
the direct purposes of this Act, namely:
• (a) Principal Chief Commissioners of Central Tax or Principal Directors General of Central Tax.
• (b) Chief Commissioners of Central Tax or Directors General of Central Tax.
• (c) Principal Commissioners of Central Tax or Principal Additional Directors General of Central Tax.
• (d) Commissioners of Central Tax or Additional Directors General of Central Tax.
• (e) Additional Commissioners of Central Tax or Additional Directors of Central Tax.
• (f) Joint Commissioners of Central Tax or Joint Directors of Central Tax.
• (g) Deputy Commissioners of Central Tax or Deputy Directors of Central Tax.
• (h) Assistant Commissioners of Central Tax or Assistant Directors of Central Tax.
• (i) Any other specific class of officers as it may legally deem fit.
• Statutory Proviso: It is explicitly provided that the officers originally appointed under the Central Excise
Act, 1944, shall be automatically deemed to be the officers successfully appointed under the provisions of
this CGST Act.
2. Appointment of Officers (Section 4) The statutory procedure for officially appointing the aforementioned
officers is clearly delineated in Section 4:
• Additional Appointments: The Central Board of Indirect Taxes and Customs (CBIC) may, strictly in
addition to the officers as may be explicitly notified by the Government under Section 3, appoint such
appropriate persons as it may think fit to be the officers under this Act.
• Authorisation to Appoint Subordinates: Without any prejudice to the provisions of sub-section (1), the
Board may, by formal order, legally authorise any officer referred to in clauses (a) to (h) of Section 3 to
directly appoint officers of central tax strictly below the rank of Assistant Commissioner of central tax for
the smooth administration of this Act.
3. Powers of Officers (Section 5) The officers appointed under the CGST Act are legally vested with wide-
ranging powers to successfully discharge their administrative and executive duties:
• Exercise of Powers: Subject to such specific conditions and strict limitations as the Board may actively
impose, an officer of central tax may exercise the powers and effectively discharge the duties conferred or
imposed on him under this Act.
• Subordinate Officers: An officer of central tax may independently exercise the powers and discharge the
statutory duties conferred or imposed under this Act on any other officer of central tax who is strictly
subordinate to him.
• Delegation of Powers: The Commissioner may, subject to such specific conditions and limitations as may
be explicitly specified on his behalf by him, legally delegate his powers to any other officer who is
subordinate to him.
• Restriction on Appellate Authority: Notwithstanding anything contained in this section, an Appellate
Authority shall strictly not exercise the powers and discharge the duties conferred or imposed on any other
executive officer of central tax.
4. Authorisation of Officers of State Tax or Union Territory Tax as Proper Officer (Section 6) To ensure
seamless cooperation and firmly prevent dual administrative control, Section 6 establishes cross-empowerment:
• Cross-Empowerment: Without prejudice to the provisions of this Act, the officers appointed under the
State GST Act or the Union Territory GST Act are legally authorised to be the proper officers for the
purposes of this CGST Act, subject to specific conditions as the Government shall, on the Council's
recommendations, by notification, specify.
• Parallel Orders: Where any proper officer issues an order under this Act, he shall also concurrently issue
an order under the State GST Act or UTGST Act, as authorised by those Acts, under strict intimation to the
jurisdictional officer of State or Union territory tax.
• Prevention of Dual Proceedings: Where a proper officer under the SGST Act or UTGST Act has actively
initiated any legal proceedings on a specific subject matter, absolutely no corresponding proceedings shall
be initiated by the proper officer under this CGST Act on the exact same subject matter.
• Appeals and Revisions: Any proceedings for rectification, appeal, and revision of any order passed by a
CGST officer shall strictly not lie before an officer appointed under the SGST or UTGST Act.
5. General Executive Functions of Proper Officers Beyond the foundational administrative appointments,
these legally designated officers possess extensive functional responsibilities to enforce the statute effectively:
• Registration and Compliance: Officers process new registration applications, amend existing particulars,
and cancel registrations for defaulting commercial entities to ensure strict adherence.
• Assessment and Scrutiny: Proper officers comprehensively conduct statutory scrutiny of filed returns,
process requests for provisional assessments, and execute stringent best judgment assessments for non-filers
and unregistered persons.
• Audit by Tax Authorities: The Commissioner or any specifically authorized officer can undertake a
detailed audit of any registered person's business records at their principal place of business.
• Inspection, Search, Seizure: Proper officers, strictly not below the rank of Joint Commissioner, can
formally authorize inspections, conduct searches of premises, and execute seizures of hidden goods and
documents to proactively prevent massive tax evasion.
• Demands and Recovery: Officers actively determine unpaid taxes, issue statutory show-cause notices
under Sections 73 and 74, and execute robust recovery proceedings to permanently protect the government
exchequer from financial losses.
The Tamil Nadu Goods and Services Tax Act, 2017: Officers under the Act, Powers and Functions
1. Introduction to the Administrative Framework
• Chapter II of the Tamil Nadu Goods and Services Tax (TNGST) Act, 2017, comprehensively lays down the
administrative machinery strictly required for the successful implementation of the state-level indirect tax
regime.
• Covering Sections 3 to 6, this specific chapter systematically establishes the hierarchical structure, the legal
appointment procedures, the territorial jurisdiction, and the immense statutory powers of the tax officers.
2. Classes of Officers Under the TNGST Act [Section 3]
• Statutory Appointment: Section 3 explicitly dictates that the State Government shall, by official
notification, properly appoint various classes of executive officers strictly for the direct purposes of
administering this Act.
• Hierarchy of Officers: The specific classes of officers legally appointed under this hierarchy precisely
include:
o (a) Commissioner of State Tax
o (b) Additional Commissioners of State Tax
o (c) Joint Commissioners of State Tax
o (d) Deputy Commissioners of State Tax
o (e) Assistant Commissioners of State Tax
o (f) Any other specific class of officers as the Government may legally deem fit.
• Transitional Deeming Provision: To ensure complete administrative continuity from the pre-GST era, a
crucial statutory proviso states that all officers originally appointed under the Tamil Nadu Value Added Tax
(TNVAT) Act, 2006, shall automatically be deemed to be the officers officially appointed under the
provisions of the TNGST Act.
3. Appointment of Officers and Territorial Jurisdiction [Section 4]
• Additional Appointments: Section 4(1) fully grants the State Government the discretionary power to
legitimately appoint such other persons as it may think absolutely fit to be the officers under this Act,
strictly in addition to the officers notified under Section 3.
• Jurisdiction of the Commissioner: Section 4(2) strongly mandates that the Commissioner of State Tax
shall possess complete and absolute jurisdiction over the entire whole of the State of Tamil Nadu.
• Jurisdiction of Additional Commissioners: The Additional Commissioner, in respect of all or any of the
statutory functions specifically assigned to them, shall possess legal jurisdiction either over the whole of the
State or, where the State Government explicitly directs, over any specific local area thereof.
• Jurisdiction of Subordinate Officers: All other subordinate officers shall, subject to specific prescribed
conditions, have jurisdiction either over the whole of the State or over such strictly defined local areas as
the Commissioner may, by formal written order, specify.
4. Core Powers of State Tax Officers [Section 5]
• Exercise of Statutory Powers: Under Section 5(1), subject to such strict conditions and limitations as the
Commissioner may officially impose, an officer of State tax may independently exercise the powers and
effectively discharge the duties conferred or imposed on him under the TNGST Act.
• Powers Over Subordinates: Section 5(2) perfectly enables an officer of State tax to lawfully exercise the
exact powers and discharge the duties conferred or imposed under this Act on any other officer of State tax
who is strictly subordinate to him.
• Delegation of Authority: Section 5(3) heavily empowers the Commissioner to explicitly delegate his own
statutory powers to any other officer who is directly subordinate to him, subject to specific conditions and
limitations specified in this behalf.
• Restriction on Appellate Authority: Section 5(4) places a severe statutory restriction. Notwithstanding
anything contained in this section, an independent Appellate Authority shall strictly not exercise the powers
and discharge the executive duties conferred or imposed on any other officer of State tax.
5. Cross-Empowerment and Authorisation of Central Tax Officers [Section 6]
• Authorisation as Proper Officers: Section 6(1) establishes the vital concept of cross-empowerment to
permanently prevent dual administrative control. It states that without prejudice to the provisions of this
Act, the officers strictly appointed under the Central Goods and Services Tax (CGST) Act are legally
authorised to be the "proper officers" for the exact purposes of the TNGST Act, subject to specific
conditions the Government shall specify by notification on the GST Council's recommendations.
• Issuance of Parallel Orders: Under Section 6(2)(a), where any proper officer formally issues a statutory
order under the TNGST Act, he shall also concurrently issue a corresponding order under the CGST Act,
under strict intimation to the jurisdictional officer of Central tax.
• Prevention of Dual Proceedings: Section 6(2)(b) legally prevents dual harassment. It dictates that where a
proper officer under the CGST Act has actively initiated any legal proceedings on a specific subject matter,
absolutely no corresponding proceedings shall be initiated by the proper officer under the TNGST Act on
the exact same subject matter.
• Separate Appellate Tracks: Section 6(3) strictly clarifies that any proceedings for rectification, appeal, and
revision, wherever applicable, of any order passed by an officer appointed under the TNGST Act shall
strictly not lie before an officer appointed under the CGST Act.
The Integrated Goods and Services Tax Act, 2017: Appointment and Authorisation of Officers
1. Introduction to the Administrative Framework
• The Integrated Goods and Services Tax (IGST) Act, 2017, was systematically enacted by the Parliament of
India to make a comprehensive provision for the levy and collection of tax on inter-state supplies of goods
or services or both by the Central Government.
• To effectively administer, rigidly regulate, and seamlessly enforce the elaborate provisions of this Act,
Chapter II of the IGST Act explicitly outlines the administrative machinery.
• This specific chapter establishes a highly robust mechanism for the formal appointment of central officers
and the statutory authorisation of State and Union Territory officers. This guarantees that taxpayers do not
face dual administrative harassment from both Central and State tax authorities, fostering a completely
harmonised national market.
2. Appointment of Officers Under the IGST Act [Section 3]
• Statutory Mandate: Section 3 of Chapter II of the Integrated Goods and Services Tax Act, 2017,
comprehensively governs the direct appointment of executive officers under the IGST regime.
• Empowerment of the Board: The statute explicitly empowers the "Board" to appoint necessary officers.
Under the GST framework and as strictly highlighted in the handwritten notes, the Board refers to the
Central Board of Indirect Taxes and Customs (CBIC).
• Discretion in Appointment: The Board possesses the absolute statutory authority to officially appoint such
Central Tax Officers as it thinks strictly fit for the explicit purpose of exercising the complex powers and
discharging the multifaceted duties under the IGST Act.
• Nature of Appointed Officers: The officers appointed under the IGST Act are fundamentally Central Tax
Officers. As cross-referenced with the CGST Act, this comprehensive hierarchy includes the Principal Chief
Commissioners, Chief Commissioners, Principal Commissioners, Commissioners, Additional
Commissioners, Joint Commissioners, Deputy Commissioners, and Assistant Commissioners of Central
Tax.
• Exercising Statutory Powers: Once officially appointed by the Board, these Central Tax officers are
legally clothed with the necessary jurisdiction to independently exercise all the powers comprehensively
provided under the IGST Act. They actively handle inter-state supply assessments, determine IGST levy,
execute tax collection, and process vital IGST refunds.
• Administrative Seamlessness: By relying entirely on the existing Central Tax machinery, the IGST Act
ensures that a new, separate administrative body is not unnecessarily created, thereby preserving
administrative efficiency and utilizing the profound expertise of the existing Central officers.
3. Authorisation of SGST and UTGST Officers as Proper Officers [Section 4]
• The Concept of Cross-Empowerment: India's dual GST model inherently involves both the Centre and
the States/Union Territories levying taxes simultaneously on intra-state supplies. However, IGST is
exclusively levied by the Central Government. To ensure a single administrative interface and permanently
avoid taxpayer confusion, the concept of cross-empowerment is strictly embedded in Section 4.
• Statutory Provision: Section 4 of the IGST Act explicitly states that without prejudice to the provisions of
this Act, the officers appointed under the State Goods and Services Tax (SGST) Act or the Union Territory
Goods and Services Tax (UTGST) Act are legally authorised to be the "proper officers" for the precise
purposes of the IGST Act.
• Conditions and Exceptions: This statutory authorisation is not entirely absolute. The law explicitly
mandates that the authorisation of State or Union Territory officers to rightfully act as IGST officers
remains strictly subject to specific exceptions and conditions.
• Role of Government and GST Council: These specific exceptions and conditions must be explicitly
specified by the Central Government. Furthermore, the Central Government cannot act unilaterally; it must
formally issue such notifications strictly based on the direct recommendations of the Goods and Services
Tax Council.
• Integration with State Acts: For instance, under the Tamil Nadu Goods and Services Tax Act, 2017,
officers such as the Commissioner, Joint Commissioners, and Deputy Commissioners of State tax are
appointed. Through Section 4 of the IGST Act, these precise State Tax officers of Tamil Nadu are legally
authorised to function as proper officers for IGST. They can assess inter-state transactions, raise IGST
demands, and process refunds without transferring the file to a Central officer.
4. Legal Implications of Authorisation
• Single Window Clearance: The most significant implication of Section 4 is the creation of a single-
window administrative mechanism. A taxpayer assigned to a State Tax Officer does not need to approach a
Central Tax Officer for their IGST assessments. The State Tax Officer is completely authorised to handle
CGST, SGST, and IGST matters seamlessly.
• Prevention of Dual Control: By authorising SGST/UTGST officers, the legislature effectively prevents
dual control. A taxpayer is assessed by either a Central or State Tax Officer, but never both simultaneously.
If an SGST officer initiates a proceeding concerning an inter-state supply, Central officers will strictly not
initiate a parallel proceeding on the exact same subject matter.
• Ultimate Significance: Sections 3 and 4 of the IGST Act form the absolute bedrock of cooperative
federalism. By empowering the Board to appoint central officers and authorising State and Union Territory
officers as proper officers, the Act remarkably achieves administrative harmonization. This arrangement
strictly prevents jurisdictional overlaps, eliminates dual harassment, and ensures the smooth, transparent
collection of integrated tax revenues across the entire nation, thereby fulfilling the ultimate constitutional
objective of one nation, one tax, and one unified market.
The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015: Tax
Authorities, Powers, and Functions
The Black Money Act, 2015, was comprehensively enacted to deal with the severe problem of undisclosed
foreign income and assets held outside India. To effectively implement this, Chapter III of the Act (Sections 6 to
14) establishes a rigorous administrative framework outlining the precise tax authorities, their extensive
powers, and their statutory functions. The handwritten notes prepared by Adv. Mr. Meyyappan Kumaran S
specifically emphasize these administrative aspects.
1. Tax Authorities and their Jurisdiction (Section 6)
• Designated Authorities: According to Section 6 of the Act and the handwritten notes, the specific Income
Tax Authorities designated under Section 116 of the Income Tax Act, 1961, shall legally serve as the tax
authorities for the precise purposes of this Act.
• Exercise of Powers: Every such designated authority is strictly mandated to successfully exercise the
powers and meticulously perform the functions of a tax authority under this Act in respect of any person
falling within their designated jurisdiction.
• Determination of Jurisdiction: The strict jurisdiction of a tax authority under this Act perfectly mirrors the
jurisdiction they hold under the Income Tax Act by virtue of orders or directions issued under Section 120
of that Act.
• Business Jurisdiction: In relation to a business, the specific place where the business is actively carried on,
or their principal place of business, fundamentally dictates the territorial jurisdiction.
• Control of Authorities: Section 118 of the Income-Tax Act, 1961, which speaks of official notifications
governing the strict subordination and control of tax authorities, completely applies to the corresponding
authorities under the Black Money Act.
2. Change of Incumbent (Section 7)
• When a tax authority officially succeeds another authority as a direct result of a change in jurisdiction or for
any other administrative reason, the succeeding authority shall seamlessly continue the pending proceedings
exactly from the specific stage at which it was left by the predecessor.
• To strictly uphold the principles of natural justice, the assessee in such a case possesses the absolute right to
request an opportunity of being heard in writing before any final order is passed.
3. Powers Regarding Discovery and Production of Evidence (Section 8)
• Section 8 vests the prescribed tax authorities with extensive investigative powers. As highlighted in the
handwritten notes, these authorities possess the exact same powers as a Civil Court under the Code of Civil
Procedure, 1908 (CPC).
• These fundamental judicial powers comprehensively include:
1. The absolute power to explicitly call for discovery and inspection of vital records.
2. The authority to strictly enforce the attendance of any person, including officers of a banking company,
and physically examine them on oath.
3. The power of strictly compelling the production of hidden books of account and other relevant
documents.
4. The authority to formally issue commissions for examinations.
• Impounding Documents: For the precise purpose of making any inquiry, the authority may impound any
books of account or other documents produced before it and safely retain them in its custody.
• Restrictions on Lower Officers: A tax authority strictly below the rank of Commissioner cannot legally
impound books without thoroughly recording their reasons in writing. Furthermore, they cannot retain such
documents for a period exceeding thirty days without obtaining the prior explicit approval of higher
authorities like the Principal Chief Commissioner or Commissioner.
4. Proceedings Deemed as Judicial Proceedings (Section 9)
• Any official proceeding initiated under this Act before a designated tax authority shall be strictly deemed to
be a "judicial proceeding" within the exact meaning of Section 193 and Section 228 of the Indian Penal
Code (IPC), 1860.
• Every tax authority shall legally be deemed to be a civil court for the precise purposes of Section 195 of the
Code of Criminal Procedure, 1973.
5. Extensive Powers of Assessment (Section 10)
• For the strict purposes of making an assessment or reassessment, the Assessing Officer, upon receiving
credible information, can formally serve a notice requiring the person to accurately produce essential
accounts, documents, or evidence.
• The Assessing Officer holds the profound statutory power to make extensive inquiries considered necessary
to obtain full and complete information regarding the undisclosed foreign income and assets of any person.
• After meticulously considering the gathered material and evidence, the Assessing Officer shall, by an
explicit order in writing, successfully assess or reassess the undisclosed foreign income and strictly
determine the exact sum payable by the assessee.
• Best Judgment Assessment: If the person completely fails to comply with the official notice terms, the
Assessing Officer possesses the power to make a "best judgment assessment" after guaranteeing an
opportunity of being heard.
6. Time Limit and Rectification (Sections 11 and 12)
• Limitation Period: The law strictly mandates that no order of assessment or reassessment shall be made
under Section 10 after the expiry of exactly two years from the end of the financial year in which the initial
notice was officially issued to the assessee.
• Rectification of Mistakes: To ensure absolute administrative fairness, a tax authority may actively amend
any order passed by it to successfully rectify any mistake apparent from the official record. This crucial
rectification power can be legally exercised within a strict statutory period of four years from the end of the
financial year in which the original order was passed.