Proceedings before income-tax authorities to be judicial proceedings
[Section-257 as per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]
Section 257(1) of Income Tax Act 2025
257(1) Any proceeding under this Act before an income-tax authority shall be deemed to be a judicial proceeding within the meaning of sections 229 and 267 and for the purposes of section 233 of the Bharatiya Nyaya Sanhita, 2023.
Section 257(2) of Income Tax Act 2025
257(2) Every income-tax authority shall be deemed to be a Civil Court for the purposes of section 215 of the Bharatiya Nagarik Suraksha Sanhita, 2023.
FAQs on Section 257 of Income Tax Act 2025
What does it mean that proceedings before income-tax authorities are deemed to be judicial proceedings?
It means that any proceeding under the Income Tax Act, 2025, conducted before an income-tax authority is treated legally as a judicial proceeding. This brings in the applicability of specific provisions from other laws, particularly the Bharatiya Nyaya Sanhita, 2023.
Which sections of the Bharatiya Nyaya Sanhita, 2023, are applicable to income-tax proceedings?
The proceedings are deemed judicial within the meaning of sections 229 and 267 and for the purposes of section 233 of the Bharatiya Nyaya Sanhita, 2023.
What is the significance of income-tax authorities being deemed as Civil Courts?
Every income-tax authority is considered a Civil Court for the purposes of section 215 of the Bharatiya Nagarik Suraksha Sanhita, 2023. This status gives them certain legal powers typically vested in Civil Courts.
Why is Section 257 important for tax proceedings?
Section 257 ensures that proceedings under the Income Tax Act, 2025, are conducted with the formality, authority, and legal significance of court proceedings, ensuring fairness, accountability, and enforceability.
Do the powers granted under Section 257(2) allow income-tax authorities to function as full-fledged courts?
No, they are deemed to be Civil Courts only for specific purposes outlined under section 215 of the Bharatiya Nagarik Suraksha Sanhita, 2023. They do not have the full powers of a regular Civil Court beyond what is specified.
Can evidence or statements made in tax proceedings be treated like those in court?
Yes, since proceedings are deemed judicial, statements, admissions, and evidence are subject to similar scrutiny and legal standards as in courts.
Is this provision new in the Income Tax Act, 2025?
Yes, this provision is applicable with effect from 1st April, 2026, under the new Income Tax Act, 2025.
Does Section 257 apply to all types of income-tax authorities?
Yes, it applies to all income-tax authorities under the Act, regardless of their rank or role.
What is the impact of judicial nature on the conduct of income-tax authorities?
The judicial nature imposes an obligation on the authorities to conduct proceedings with due legal process, fairness, and adherence to rules of evidence and procedure.
Can income-tax authorities issue orders that have the same weight as court orders?
For the specific legal provisions they are empowered under (like section 215 of the Bharatiya Nagarik Suraksha Sanhita, 2023), their orders carry the weight and enforceability similar to court-issued orders.
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