Income Tax Authorities their Powers & Functions under Income-Tax Act, 1961

The Government of India has constituted a number of authorities to execute the Income Tax Act and to control the Income Tax Department
efficiently. The Central Board of Direct Taxes is the supreme body in the direct tax set-up. It has to perform several statutory functions under the various acts
and it is responsible for the formulation and implementation of different policies relating to direct taxes administration. The Board consists of a Chairman and
six members.
Section 117- The Central Government can appoint those persons whom it thinks are fit to become Income Tax Authorities. The Central Government can
authorize the Board or a Director-General, a Chief Commissioner or a Commissioner or a Director to appoint income tax authorities below the ranks of a
Deputy Commissioner or Assistant Commissioner, According to the rules and regulations of the Central Government controlling the conditions of such posts.
CHAPTER XIII, INCOME-TAX AUTHORITIES
Section 116. There shall be the following classes of income-tax authorities namely:
1. The Central Board of Direct Taxes
2. Directors-General of Income-tax or Chief Commissioners of Income-tax,
3. Directors of Income-tax or Commissioners of Income-tax or Commissioners of Income-tax (Appeals),
4. Additional Directors of Income-tax or Additional Commissioners of Income-tax or Additional Commissioners of Income-tax Appeals
5. Joint Directors of Income-tax or Joint Commissioners of Income-tax
6. Deputy Directors of Income-tax or Deputy Commissioners of Income-tax or Deputy Commissioners of Income tax Appeals
7. Assistant Directors of Income-tax or Assistant Commissioners of Income-tax,
8. Income-tax Officers,
9. Tax Recovery Officers,
10. Inspectors of Income-tax.

Functions The sections providing functions 128,130,130A were omitted but the following functions are provided in the other sections related to jurisdiction-
1. Assistant Commissioners of Income-tax shall be under the direct control of the Central Board of Revenue and shall perform their functions in respect of
such persons or such areas as the Central Board of Revenue may direct and, where such directions have assigned to two or more Appellate Assistant
Commissioners of Income-tax, the same persons or same area in accordance with any orders which the Central Board of Revenue may make for the
distribution and allocation of the work to be performed.
2. Inspecting Assistant Commissioners of Income-tax and Income-tax Officers shall perform their functions in respect of such persons or such areas as the
Commissioner of Income-tax may direct and, where such directions have assigned to two or more Inspecting Assistant Commissioners of Income-tax or
Income-tax Officers, in accordance with any orders which the Commissioner of Income-tax may make for the distribution and allocation of the work to be
performed.
3. Inspectors of Income-tax shall perform such functions in the execution of this Act as are assigned to them by the Income-tax Officer or other Income-tax
authority under whom they are appointed to work, and shall be subordinate to such Officer or authority.
4. The Central Board of Revenue may, by notification in the Official Gazette, empower Commissioners of Income-tax, Appellate or Inspecting Assistant
Commissioners of Income-tax and Income-tax Officers to perform such functions as may be specified in the notification, and the functions so specified shall
cease to be performed in respect of the specified classes of persons or classes of income by the other authorities appointed.
Powers of Income Tax Authorities
Section 131 Power relating to Discovery, Production of evidence, etc: The Assessing Officer, The Joint Commissioner, the Chief Commissioner or the
Commissioner has the powers as are provided in a court under the code of Civil Procedure, 1908, when trying to suit for the following matters:
(a) discovery and inspection;
(b) to enforce any person for attendance, and examining him on oath
(c) issuing commissions; and
(d) compelling the production of books of account and other document.

Section 132 Power of Search and Seizure: Today it is not hidden from income tax authorities that people evade tax and keep unaccounted assets. When the
prosecution fails to prevent tax evasion, the department has to take actions like search and seizure.

Section 132A- Requisition of Books of account, etc: Where the Director or the Director-General or Commissioner or the Chief Commissioner in
consequence of information in his possession, has reason to believe that the book of accounts or other documents or the assets have been taken under custody
by any authority or officer under any other law, then the Chief Commissioner or the Director General or Director or Commissioner can authorize any Joint
Director, Deputy Director, Joint Commissioner, Assistant Commissioner, Assistant Director, or Income tax Officer to require the authority to provide such
books of account, assets or any documents to the demanding officer, when such officer is of the opinion that it is no longer necessary to retain the same in his
custody.

Section 133-Power to Call for Information: The Commissioner, The Assessing Officer or the Joint Commissioner may for the purpose of this Act:

(a) can call any firm to provide him with a return of the addresses and names of partners of the firm and their shares;
(b) can ask any Hindu Undivided Family to provide him with return of the addresses and names of members of the family and the manager;
(c) can ask any person who is a trustee, guardian or an agent to deliver him with return of the names of persons for or of whom he is an agent, trustee or
guardian and their addresses;
(d) can ask any person, dealer, agent or broker concerned in the management of stock or any commodity exchange to provide a statement of the addresses and
names of all the persons to whom the Exchange or he has paid any sum related with the transfer of assets or the exchange has received any such sum with the
particulars of all such payments and receipts;

Section 133 A-Power of Survey: The term 'survey' is not defined by the Income Tax Act. An Income Tax authority can have a survey for the purpose of this
Act. The objectives of conducting Income Tax surveys are:
To discover new assessees;
To collect useful information for the purpose of assessment;
To verify that the assessee who claims not to maintain any books of accounts is in-fact maintaining the books;
To check whether the books are maintained, reflect the correct state of affairs.

Section 133 B- Collection of Information: For the purpose of collection of information which may be useful for any purpose, the Income tax authority can
enter any building or place within the limits of the area assigned to such authority, or any place or building occupied by any person in respect of whom he
exercises jurisdiction.
Section 134- Power to inspect registers of companies- The Assessing Officer, the Deputy Commissioner Appeals) the Joint Commissioner or the
Commissioner Appeals or any person subordinate to him authorised in writing in this behalf by the Assessing Officer, may inspect, and if necessary, take
copies, or cause copies to be taken, of any register of the members, debenture holders or mortgagees of any company or of any entry in such register.
Section 135. Power of Director General or Director, Chief Commissioner or Commissioner and Joint Commissioner- The Director General or Director
the Chief Commissioner or Commissioner and the Joint Commissioner shall be competent to make any enquiry under this Act, and for this purpose shall have
all the powers that an Assessing Officer has under this Act in relation to the making of enquiries.