Income-tax authorities for the purposes of section 133A of the Act

Section 133A of the Act enables an income-tax authority to enter any place of business or profession or charitable activity within his jurisdiction to verify the books of account or other documents, cash, stock or other valuable article or thing, which may be useful for or relevant to any proceeding under this Act. Explanation to section 133A provides the definition of an income tax authority for the purposes of this section.

2. Through Taxation and Other Laws (Amendment and Relaxation of Certain Provisions) Act, 2020, the Explanation was amended to provide that any the incometax authority who is subordinate to the Principal Director General of Income-tax (Investigation) or the Director General of Income-tax (Investigation) or the Principal Chief Commissioner of Income-tax (TDS) or the Chief Commissioner of Income-tax (TDS), as the case may be shall only be considered as Income-tax authorities for the purposes of section 133A.

3. It is proposed to amend the Explanation to section 133A of the Act to provided that income tax authority shall be sub-ordinate to Principal Director General or Director General or Principal Chief Commissioner or Chief Commissioner, as the case may be, specified by the Board..

5. This amendment will take effect from 1st April, 2022.

[Clause 37]

 

Income-tax authority definition revised to limit qualifying officers to those specified by the Board, altering entry-and-verification scope. The proposed amendment restricts the definition of income-tax authority to officers who are subordinate to the Principal Director General or Director General or Principal Chief Commissioner or Chief Commissioner as specified by the Board, thereby limiting which subordinate officers may exercise entry and verification powers under the section; the amendment takes effect from 1 April, 2022.