The Central Board of Direct Taxes (CBDT) on Monday notified that the prescribed income-tax authority shall not be below the rank of Income-tax Officer for Issuance of Notice for Inquiry before Assessment of Tax.
The Board has notified Income-tax (29th Amendment) Rules, 2021, which seeks to insert Rule 12F in the Income-tax Rules, 1962 which will come into force on 13th September, 2021.
Rule 12F is regarding prescribed income-tax authority under the second proviso to clause (i) of sub-section (1) of section 142 which reads, “The prescribed income-tax authority under the second proviso to clause (i) of sub-section (1) of section 142 shall be an income-tax authority not below the rank of Income-tax Officer who has been authorised by the Central Board of Direct Taxes to act as such authority for the purposes of that clause.”
Section 142 of the Act provides for the conduct of inquiry before assessment. Clause (i) of sub section (1) of the said section gives the Assessing Officer the authority to issue notice to an assessee, who has not submitted a return of income, asking for submission of return. This is necessary to bring into the fold of taxation non-filers or stop filers who have transactions resulting in income. However, this power can be currently invoked only by the Assessing Officer.
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