Power to inspect registers of companies
[As per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]
The Assessing Officer, assessment unit, verification unit, the Joint Commissioner or the Joint Commissioner (Appeals) or the Commissioner (Appeals), or any person subordinate thereof and authorised in writing in this behalf by such officer or authority, 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.
FAQs on Section 255 of Income Tax Act 2025
Who is empowered to inspect the registers of companies under Section 255?
The Assessing Officer, assessment unit, verification unit, Joint Commissioner, Joint Commissioner (Appeals), Commissioner (Appeals), or any subordinate person authorised in writing by them can inspect the registers.
What types of registers can be inspected under this section?
Registers of the members, debenture holders, or mortgagees of any company can be inspected.
Is the authorised officer allowed to take copies of the registers?
Yes, they may take copies or cause copies to be taken of the registers or any entries in them.
Does the authority need special approval to perform the inspection?
Yes, any subordinate officer must be specifically authorised in writing by the competent authority to carry out such inspection.
Can inspection be done for any type of company?
Yes, the section applies to any company having such registers.
What is the objective of allowing inspection under this provision?
The provision allows inspection for income tax proceedings, investigation, verification, or assessment purposes as deemed necessary by the authority.
Is prior notice to the company required before inspection?
The section does not mandate prior notice; it simply empowers the authority or authorised person to inspect the registers.
Can digital or electronic registers also be inspected?
Yes, if a company maintains digital or electronic registers, they are equally subject to inspection under this section.
Can the company refuse to provide the registers for inspection?
No, companies are legally obligated to comply with the inspection requests made under the authority of Section 255.
What happens if a company denies access to the registers?
Denial of access could be considered non-compliance, possibly resulting in penal consequences as per relevant provisions of the Act.
Is this power applicable only during ongoing assessments?
No, it may be exercised not only during assessments but also for verification or investigation purposes.
From when is Section 255 effective?
Section 255 comes into effect from 1st April, 2026.
