Income-tax authorities for the purposes of section 133A of Income Tax Act, 1961
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 income-tax 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..
4. This amendment will take effect from 1st April, 2022.
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Note on Clause 37 of Finance Bill 2022
Clause 37 seeks to amend the section 133A of the Income-tax Act relating to power of survey.
Explanation to the said section, inter alia, defines the expression “income-tax authority”.
It is proposed to amend the said definition “income-tax authority” to mean such authority who is subordinate to the Principal Director General or the Director General or the Principal Chief Commissioner or the Chief Commissioner, as may be specified by the Board.
This amendment will take effect from 1st April, 2022.
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Extract of Clause 37 of Finance Bill 2022
37. Amendment of section 133A.
In section 133A of the Income-tax Act, in the Explanation occurring after sub-section (6), in clause (a), for the long line, the following long line shall be substituted, namely:––
“who is subordinate to the Principal Director General or the Director General or the Principal Chief Commissioner or the Chief Commissioner, as may be specified by the Board;”.
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