Various Tax Authorities and their Powers under the Income Tax Act

For effective financial management it is imperative to understand the functioning, the powers and the limitation on the powers of tax authorities. This proves to be of even more relevance in the light of the current scenario in India where there is an uncertainty in the mind of the assesses with regard to the power that can be exercised by these authorities and where there have been a number of instances of abuse of these rule- making powers which have the effect of contradicting statutory provisions that have been given binding effect, displacing the authoritative pronouncements of the Higher Judiciary and causing an erosion of the constitutionally-mandated effect of Supreme Court declarations under Article 141.This paper explains in a simple manner the various tax authorities established under the Income Tax Act, the Central Board of Direct Taxes and it's powers, the powers of other Income Tax authorities, the jurisdiction of the Income-Tax Authorities, and a conclusive analysis of the same with the objective to enable a comprehensive understanding of the functioning of tax authorities for the purpose of financial management.