Power of competent authority
[Section-256 as per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]
The competent authority shall be competent to make any enquiry under this Act, and for this purpose, shall have all the powers that an Assessing Officer has under this Act in relation to the making of enquiries.
FAQs on Section 256 of Income Tax Act 2025
What is the role of the competent authority under Section 256 of the Income Tax Act, 2025?
The competent authority is empowered to make any enquiry under the Act.
Does the competent authority have powers similar to the Assessing Officer?
Yes, the competent authority has all the powers that an Assessing Officer has under the Act in relation to making enquiries.
Can the competent authority summon documents or individuals during enquiry?
Yes, since it holds the same powers as an Assessing Officer, the competent authority can summon documents or individuals for enquiry.
Is Section 256 applicable from a specific date?
Yes, Section 256 is applicable with effect from 1st April, 2026.
What kinds of enquiries can the competent authority initiate?
The competent authority can initiate any enquiry that is permissible under the Income Tax Act, 2025.
Is the scope of powers of the competent authority limited compared to other authorities?
No, for the purpose of enquiries, the competent authority has the same scope of powers as the Assessing Officer.
Does the Act define who the competent authority is?
While Section 256 mentions the powers of the competent authority, the definition or designation would be provided elsewhere in the Act or by notification.
Can the competent authority use coercive powers like search or seizure?
Section 256 itself does not explicitly state this, but it grants powers equivalent to those of the Assessing Officer for enquiry purposes, which may include such actions if permitted under other sections.
Is the competent authority required to follow due process while conducting enquiries?
Yes, like the Assessing Officer, the competent authority must adhere to the procedural requirements of the Act.
Can actions of the competent authority be challenged by the assessee?
Yes, any action taken can be subject to review, appeal, or challenge as per the provisions laid down in the Act.
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