Income Tax authorities and their powers

11/05/2020 1 By indiafreenotes

Commissioner of Income Tax:

He is an important income tax authority which has executive and judicial powers. The central board of revenue is the appointing authority for commissioner of income tax. Normally commissioner is appointed as an incharge of a zone. He is responsible for the administration of the area assigned to him. He is subordinate regional commissioner income tax.

Appointment of Income-Tax Authorities [Sec. 117]

  1. Power of Central Government: The Central Government may appoint such persons as it thinks fit to be income-tax authorities. It kept with itself the powers to appoint authorities upto and above rank of an Assistant Commissioner of Income-Tax [ Sec. 117 (1) ]
  2. Power of the Board and Other Higher Authorities: 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 or Deputy Commissioner.  [ Sec. 117 (2) ]
  3. Power to appoint Executive and Ministerial Staff: 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 [ Sec. 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.


  1. In a specific area which is assigned to him, he performs both the function judicial and executive.
  2. If specific area is not assigned then he performs his duties according the directions of central board of revenue.

Function and powers of commissioner of income tax:

The commissioner exercises the power to control the staff of income tax department working in his jurisdiction. He is also responsible for the efficiency of work in all respect in his zone.

Following are the important functions and powers of commissioner of income tax.

  1. Determine The Jurisdiction:

He has the power to determine the jurisdiction and assign the work to subordinate inspecting additional commissioners income tax and deputy commissioners.

  1. Final Authority To Decide The Dispute:

Commissioner income tax is the final authority to decide the disputes if two subordinate income tax authorities are not in agreement regarding their areas of juries diction or the assessment of a person.

  1. Transfer Of Jurisdiction:

He is empowered to transfer the jurisdiction from one income tax authority to another.

  1. Revision Of Orders:

He may revise any other passed by his subordinates however these orders should not be prejudicial to the assessee.

  1. Power To With Held The Refund:

The commissioner of income tax is empowered to order that the refund must be with held if the department wants to appeal against the refund.

  1. Refer The Case To High Court:

If he is not satisfied with the decision of appalled tribunal, he can request the tribunal to refer the case to high court provided that the decision involves the point of law.

  1. Power To Compound Offence:

He may either before or after the institution of proceedings compound such offence where a person has committed any offence under the income tax law.

  1. Order To Person For Payment:

He may order a person who has committed an offence to pay the amount for which the offence may not compound.

  1. Power To Disqualify The Practitioners:

If he finds any practitioners qualify of misconduct, he may disqualify an income tax practitioner to appear before any income tax authority.

10. Power To Amend His Orders:

To rectify any mistake from the record the commissioner income tax may amend his orders passed by him.

11. Power To Receive Evidence:

The commissioner has the power to receive the evidence on affidavit.  For the examination of witness he can issue the orders to commissioners.

12. Power To Demand Documents:

He can compel any person to produce his books of accounts or any other documents for investigation. He can also enforce any person to attend his office and he can examine him.

  1. Power to Extend the Petition Period:

He can extend the normal period for filling a revision petition, If he is satisfied about the cause of delay.

  1. Power to Decide the Revision Petitions:

Against the decision of his subordinates he entertains, hears and decides the revision petitions of aggrieved assesses.

  1. May Direct for Appeal:

The commissioner of income tax (Head quarter) may direct the deputy commissioner to appeal to appellate tribunal against the decision made by the commissioner income tax (appeal).

  1. Penalty:

If the notice has been issued to any taxpayer but he has failed to obey the notice. In this case commissioner income tax may impose penalty on that person.

  1. Best Judgement Assessment:

If any person fails to file the return of income tax with in due date then the commissioner can make the best judgement of assessment.

  1. Power of Recovery Of Tax:

The commissioner income tax can take various steps to recover the amount if any person fails to pay the due tax.

  1. Inventory of Articles:

If any article is not entered and it is found in the premises the commissioner can make inventory of that article.

  1. Provisional Assessment:

The commissioner income tax has the power to make the provisional assessment if any person fails to file the return.

  1. Notice for Tax:

The commissioner income tax can issue the notice to any person for filling the return or for the collection of tax from the tax payer.

  1. Retain The Documents:

The commissioner income tax is empowered to retain the important documents of the taxpayers for the purpose of prosecutions.

  1. Change The Method Of Accounting:

If any person wants to change his method of accounting, the commissioner income tax may allow him to change.