2. INCOME-TAX AUTHORITIES
(a) the Central Board of Direct Taxes constituted under the Central Boards of Revenue Act,
1963 (54 of 1963),
(aa) Principal Directors General of Income-tax or Principal Chief Commissioners of Income-tax,
(b) Directors-General of Income-tax or Chief Commissioners of Income-tax,
(ba) Principal Directors of Income-tax or Principal Commissioners of Income-tax,
(c) Directors of Income-tax or Commissioners of Income-tax or Commissioners of Income-tax
(Appeals),
(cc) Additional Directors of Income-tax or Additional Commissioners of Income-tax or Additional
Commissioners of Income-tax (Appeals),
(cca) Joint Directors of Income-tax or Joint Commissioners of Income-tax,
3. INCOME-TAX AUTHORITIES
(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.
4. 4
The CBDT is a part of Department of
Revenue in the Ministry of Finance.
On one hand, CBDT provides essential
inputs for policy and planning of direct taxes in
India, at same time it is also responsible for
administration of direct tax laws through the
Income Tax Department.
CENTRAL BOARD OF DIRECT TAXES
5. 5
The Central Board of Direct Taxes is a
statutory authority functioning under the Central
Board of Revenue Act, 1963.
The officials of the Board in their ex-officio
capacity also function as a Division of the
Ministry dealing with matters relating to levy and
collection of direct taxes.
CENTRAL BOARD OF DIRECT TAXES
6. 6
The Central Board of Revenue as the
Department apex body charged with the
administration of taxes came into existence as a
result of the Central Board of Revenue Act, 1924.
Initially the Board was in charge of both
direct and indirect taxes.
CENTRAL BOARD OF DIRECT TAXES
7. 7
However, when the administration of taxes
became too unwieldy for one Board to handle, the
Board was split up into two, namely the Central
Board of Direct Taxes and Central Board of
Excise and Customs with effect from 1.1.1964.
This bifurcation was brought about by
constitution of the two Boards u/s 3 of the Central
Boards of Revenue Act, 1963.
CENTRAL BOARD OF DIRECT TAXES
8. POWERS OF INCOME-TAX AUTHORITIES
(a) Discovery and inspection;
(b) Enforcing the attendance of any person, including any officer of a banking company,
and examining him on oath;
(c) Compelling the production of books of account and other documents; and
(d) Issuing commissions.
(1) The Income-tax Officer, Appellate Assistant Commissioner, Commissioner and Appellate
Tribunal shall, for the purposes of this Act, have the same powers as are vested in a Court
under the Code of Civil Procedure, 1908 (V of 1908), when trying a suit in respect of the
following matters, namely:
9. POWERS OF INCOME-TAX AUTHORITIES
(2) Subject to any rules made in this behalf, any Income-tax Officer specially authorised by the
Commissioner in this behalf may,
(i) Enter and search any building or place where he has reason to believe that any books of
account or other documents which in his opinion will be useful for, or relevant to, any proceeding
under this Act may be found and examine them, if found;
(ii) Seize any such books of account or other documents or place marks of identification thereon
or make extracts or copies therefrom;
(iii) Make a note or an inventory of any other article or thing found in the course of any search
under this section which in his opinion will be useful for, or relevant to, any proceeding under this
Act; and the provisions of the Code of Criminal Procedure, 1898 (V of 1898), relating to searches
shall apply so far as may be to searches under this section.
10. POWERS OF INCOME-TAX AUTHORITIES
(3) Subject to any rules made in this behalf, any authority referred to in sub section (1) may
impound and retain in its custody for such period as it thinks fit any books of account or other
documents produced before it in any proceeding under this Act: Provided that an Income-tax
Officer shall not—
(a) Impound any books of account or other documents without recording his
reasons for so doing; or
(b) Retain in his custody any such books or documents for a period exceeding
fifteen days (exclusive of holidays) without obtaining the approval of the
Commissioner therefor.
(4) Any proceeding before any authority referred to in this section shall be deemed to be a
judicial proceeding within the meaning of sections 193 and 228, and for the purposes of section
196 of the Indian Penal Code (XLV of 1860).
12. CENTRALISED PROCESSING CENTRES
(1) The Board may set up as many Centralised Processing Centres as it may deem necessary and specify
their respective jurisdictions.
(2) The processing of the returns shall be undertaken at the Centralised Processing Centre.
Processing of Returns:
8. (i) The Centre shall process a valid return of income in the following manner, namely:-
(a) the sum payable to, or the amount of refund due to, the person shall be determined after credit of such
Tax collected at Source (TCS), Tax Deducted at Source (TDS) and tax payment claims which can be
automatically validated with reference to data uploaded through TDS and TCS statements by the deductors
or the collectors, as the case may be, and tax payment challans reported through authorised banks in
accordance with the procedures adopted by the Centre in this regard.
(b) an intimation shall be generated electronically and sent to the person by e-mail specifying the sum
determined to be payable by, or the amount of the refund due to, the person; and
(c) any intimation to the person to pay any sum determined to be payable shall be deemed to be a notice of
demand as per the provisions of section 156 of the Act and all other provisions of the Act shall be applicable
accordingly.
13. CENTRALISED PROCESSING CENTRES
(ii) The Commissioner may, -
(a) adopt appropriate procedure for processing of returns; or
(b) decide the order of priority for processing of returns of income based on
administrative requirements.
(iii) Wherever a return cannot be processed in the Centre for any reasons,
the Commissioner shall arrange to transmit such return to the Assessing
Officer having jurisdiction for processing.
