Power of Joint Commissioner to issue directions in certain cases
[Section-272 as per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]
Section 272(1) of Income Tax Act 2025
272(1) A Joint Commissioner may, on his own motion or on a reference being made to him by the Assessing Officer or on the application of an assessee, call for and examine the record of any proceeding in which an assessment is pending and, if he considers that, having regard to the nature of the case or the amount involved or for any other reason, it is necessary or expedient so to do, he may—
- (a) issue such directions as he thinks fit for the guidance of the Assessing Officer to enable him to complete the assessment; and
- (b) such directions shall be binding on the Assessing Officer.
Section 272(2) of Income Tax Act 2025
272(2) No directions which are prejudicial to the assessee shall be issued under sub-section (1) without giving an opportunity of being heard to the assessee.
Section 272(3) of Income Tax Act 2025
272(3) For the purposes of this section, no direction as to the lines on which an investigation connected with the assessment should be made, shall be deemed to be a direction prejudicial to the assessee.
FAQs on Section 272 of Income Tax Act 2025
Who is empowered under Section 272(1) to issue directions in assessment proceedings?
A Joint Commissioner is empowered to issue directions for the guidance of the Assessing Officer in any pending assessment proceeding.
Can the Joint Commissioner act on his own or does he need a reference?
The Joint Commissioner may act on his own motion, on a reference from the Assessing Officer, or on an application made by the assessee.
What kind of directions can the Joint Commissioner issue?
He may issue any directions he thinks fit for guiding the Assessing Officer to complete the assessment, considering the nature of the case, the amount involved, or any other relevant reason.
Are the directions issued by the Joint Commissioner binding?
Yes, such directions are binding on the Assessing Officer.
Can the Joint Commissioner issue directions that are prejudicial to the assessee?
No, directions prejudicial to the assessee cannot be issued without giving the assessee an opportunity of being heard.
What is considered “prejudicial” to the assessee under this section?
While the section does not define “prejudicial,” it clarifies that directions merely about how an investigation should be carried out are not deemed prejudicial.
Is prior notice mandatory before issuing directions unfavorable to the assessee?
Yes, the assessee must be given an opportunity of being heard before any prejudicial direction is issued.
Do directions on how to conduct an investigation require hearing the assessee?
No, directions that only guide the investigation methodology are not considered prejudicial and do not require prior hearing.
At what stage can the Joint Commissioner intervene with directions?
Intervention is permitted only in cases where the assessment is still pending.
Does the Joint Commissioner have to record reasons for issuing directions?
The section does not mandate recording reasons, but it does require that the Joint Commissioner consider the nature of the case, the amount involved, or other reasons before issuing directions.
Can an assessee request the Joint Commissioner to examine their pending assessment?
Yes, an assessee may apply to the Joint Commissioner for examining the records of a pending assessment proceeding.
Can the Assessing Officer refuse to comply with the directions?
No, the directions issued by the Joint Commissioner under Section 272(1) are binding on the Assessing Officer.
Is there any limitation period for the Joint Commissioner to exercise this power?
Section 272 does not prescribe any specific limitation period, but it applies only while the assessment is still pending.
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