The Central Board of Direct Taxes (CBDT) vide Notification No. 24/2021 issued on 31-03-2021 authorized the prescribed income-tax authority for the purpose of section 133C of the Income-tax Act, 1961 (“Act”) read with Rule 12D of the Income Tax Rules, 1962 (“Rules”) in view of ushering of the new faceless proceedings regime under the income-tax law.
Section 133C was inserted by the Finance (No. 2) Act, 2014 to enable the prescribed Income-tax authority to verify the information in its possession relating to any person. The said authority may issue a notice to such person requiring him, on or before a date specified therein, to furnish information or documents, verified in the manner specified therein which may be useful for, or relevant to, any enquiry or proceeding under the Act.
In this context, CBDT has notified the prescribed Income-tax authority under section 133C by prescribing Rule 12D under the Income-tax Rules. Presently, prescribed income-tax authority under section 133C shall be an income-tax authority not below the rank of Assistant Commissioner of Income-tax who has been authorised by the CBDT to act as such authority for the purposes of that section. Prior to this, Principal Director General or Director General or Principal Director or Director" means the Principal Director General of Income-tax or the Director General of Income-tax or the Principal Director of the Income-tax or the Director of Income-tax to whom the Central Board of Direct Taxes may authorize to act as prescribed authority for the purposes of section 133C were the notified prescribed income-tax authority. From 30.1.2019, any income-tax authority being ACIT or higher authority shall be the prescribed authority for the purposes of section 133C.
Any such authority must be specifically authorised by CBDT to act as prescribed authority for the purposes of section 133C. Without such specific authorisation, an officer though holding the office of prescribed rank will not be prescribed authority.
Now, the CBDT authorises the Principal Commissioners of Income-tax (Regional Faceless Assessment Centre) (Verification Unit) [PCIT (ReFAC)(VU)] of 35 designated headquarters to exercise the concurrent powers along with any other authority and to hold the additional charge and act as Prescribed Authority, in respect of the specified territorial areas or such cases or class of cases or such persons or class of persons and in respect of all income or class of income thereof.
Further, CBDT authorises the said PCIT (ReFAC)(VU) to issue orders in writing for the exercise of powers and performance of functions by the Additional Commissioners of Income-tax (ReFAC) (VU) or Joint Commissioners of Income-tax (ReFAC) (VU), who are subordinate to them, in respect of the specified territorial areas or such persons or classes of persons or of such income or class of income or of such cases or class of cases.
The said Additional Commissioners of Income-tax (ReFAC) (VU) or Joint Commissioners of Income-tax (ReFAC) (VU) are further authorized by the CBDT to issue orders in writing for the exercise of powers and performance of functions by the Deputy Commissioners of Income-tax (ReFAC) (VU)/ Assistant Commissioners of Income-tax (ReFAC) (VU) / Income-tax Officers (ReFAC) (VU), who are subordinate to them, in respect of the specified territorial areas or such persons or classes of persons or of such income or class of income or of such cases or class of cases in respect of which the Additional Commissioners or Joint Commissioners of Income-tax (ReFAC) (VU) are authorised by the Principal Commissioners of Income-tax (ReFAC) (VU).
This notification took effect from the 1st day of April 2021.
One should note that section 133(6) of the Act gives identical power to the authorities for seeking information etc. relevant to any enquiry or proceedings. Where no proceedings are pending, information can be sought with the approval of a higher authority. Section 133(6) thus gives power to the authorities for seeking information etc but with sufficient safeguards.
Section 133C provides the same power of enquiry etc. to any Income-tax authority without seeking any sanction or approval from a higher authority. This provision provides unbridled powers in the hands of the authorities.
Read the full text of Notification No. 24/2021 dated 31.03.2021 on Authorization to Income Tax Authority under section 133C
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 31st March, 2021
(Income-tax)
S.O. 1436(E).—In exercise of the powers conferred by sub-sections (1), (2) and (5) of section 120 and section 133C of the Income-tax Act, 1961 (43 of 1961) (hereinafter referred to as the said Act), read with rule 12D of the Income-tax Rules, 1962, the Central Board of Direct Taxes hereby-
(a) authorises that the Principal Commissioners of Income-tax (Regional Faceless Assessment Centre) (Verification Unit) [(hereinafter referred to as PCIT (ReFAC)(VU)]specified in Column (2) of the Schedule (hereinafter referred to as the said Schedule) annexed hereto, having headquarters at the places specified in the corresponding entry in Column (3) of the said Schedule, to exercise the concurrent powers along with any other authority under the said Act and to hold additional charge and act as Prescribed Authority, in respect of such territorial areas or such cases or class of cases or such persons or class of persons specified in the corresponding entry in Column (4) of the said Schedule and in respect of all income or class of income thereof;
(b) authorises the Principal Commissioners of Income-tax (ReFAC)(VU) specified in Column (1) of the said Schedule to issue orders in writing for the exercise of powers and performance of functions by the Additional Commissioners of Income-tax (ReFAC) (VU) or Joint Commissioners of Income-tax (ReFAC) (VU), who are subordinate to them, in respect of such territorial areas or such persons or classes of persons or of such income or class of income or of such cases or class of cases specified in the corresponding entry in Column (4) of the said Schedule;
(c) authorises the Additional Commissioners of Income-tax (ReFAC)(VU) or the Joint Commissioners of Income-tax (ReFAC)(VU) referred to in clause (b), to issue orders in writing for the exercise of powers and performance of functions by the Deputy Commissioners of Income-tax (ReFAC) (VU)/ Assistant Commissioners of Income-tax (ReFAC) (VU) / Income-tax Officers (ReFAC) (VU), who are subordinate to them, in respect of such territorial areas or such persons or classes of persons or of such income or class of income or of such cases or class of cases specified in the corresponding entry in Column (4) of the said Schedule in respect of which the Additional Commissioners or Joint Commissioners of Income-tax (ReFAC) (VU) are authorised by the Principal Commissioners of Income-tax (ReFAC) (VU) under the clause (b) above:
SCHEDULE
2. This notification shall come into force with effect from the 1st day of April, 2021.
[Notification No. 24/2021/F. No. 187/3/2020-ITA-I]
PRAJNA PARAMITA, Director
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