Chapter XIV - Tax Administration
Section 239
Section 239: instructions to subordinate authorities
Section 239 empowers the Central Board of Direct Taxes (the Board) to issue administrative instructions binding on income-tax authorities, while protecting an assessee from directed outcomes in individual cases and preserving the independence of appellate authorities. It also lets the Board grant relief in cases of genuine hardship.
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This article is for general information. Refer to the Income-tax Act, 2025 as amended by the Finance Act, 2026 and the Taxation and Other Laws (Amendment) Act, 2026 for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
(1) The Board may issue such orders, instructions and directions to other income-tax authorities as it considers fit for the proper administration of this Act, and such authorities and all other persons employed in the execution of this Act shall observe and follow such orders, instructions and directions.
(2) No orders, instructions or directions under sub-section (1) shall be issued so as to—
(a) require any income-tax authority to make a particular assessment or to dispose of a particular case in a particular manner; or
(b) interfere with the discretion of the Joint Commissioner (Appeals) or Commissioner (Appeals) in the exercise of his appellate functions.
(3) Without prejudice to the generality of the foregoing power, the Board may,—
(a) if it considers it necessary or expedient so to do for the proper and efficient management of the work of assessment and collection of revenue, issue, from time to time (whether by way of relaxation of any of the provisions of sections 263, 270, 271, 279, 280, 287, 288, 298, 398(3), 406, 407, 408, 423, 424, 425, 427, 428, 439, 448, 449 or otherwise), general or special orders in respect of any class of incomes or class of cases,––
(i) setting forth directions or instructions (not being prejudicial to assessees) as to the guidelines, principles or procedures to be followed by other income-tax authorities in the work relating to assessment or collection of revenue or the initiation of proceedings for the imposition of penalties; and
(ii) any such order may, if the Board is of the opinion that it is necessary in the public interest so to do, be published and circulated in the prescribed manner for general information;
(b) if it considers it desirable or expedient so to do for avoiding genuine hardship in any case or class of cases, by general or special order, authorise any income-tax authority, not being a Joint Commissioner (Appeals) or a Commissioner (Appeals) to admit an application or claim any exemption, deduction, refund or any other relief under this Act after the expiry of the period specified in this Act for making such application or claim and deal with the same on merits as per law;
(c) if it considers it desirable or expedient so to do for avoiding genuine hardship in any case or class of cases, by general or special order for reasons to be specified therein, relax any requirement contained in any of the provisions of Chapter IV or VIII, where the assessee has failed to comply with any requirement specified in such provision for claiming deduction thereunder, subject to the following conditions:—
(i) the default in complying with such requirement was due to circumstances beyond the control of the assessee; and
(ii) the assessee has complied with such requirement before the completion of assessment in relation to the tax year in which such deduction is claimed.
(4) The Central Government shall cause every order issued under sub-section (3)(c) to be laid before each House of Parliament.
Introduction
Board instructions under Section 239 guide administration of the Act, but cannot dictate the result of a particular assessment or interfere with appellate discretion. The hardship provisions are separate powers for specified late claims and certain deduction requirements.
Key takeaways
Instructions bind administrators
Income-tax authorities and others executing the Act must follow the Board's lawful orders, instructions and directions.
Individual outcomes remain protected
The Board cannot use this power to require a specific assessment result or interfere with the discretion of the appellate authorities.
Late claims may be admitted for hardship
The Board may authorise a non-appellate authority to admit a late exemption, deduction, refund or other relief claim and consider it on its merits.
Deduction-condition relaxation is narrower
For a Chapter IV or VIII requirement, the default must be beyond the assessee's control and cured before the relevant assessment is completed.
General power to instruct
The Board may issue orders, instructions and directions to other income-tax authorities as it considers fit for the proper administration of the Act, and those authorities (and everyone else employed in executing the Act) must observe and follow them.
Limits on that power
No such order, instruction or direction may require an income-tax authority to make a particular assessment or dispose of a particular case in a particular manner, or interfere with the discretion of a Joint Commissioner (Appeals) or Commissioner (Appeals) in exercising appellate functions.
Hardship-relief powers
Without limiting the general power above, the Board may: issue general or special orders (through relaxation of specified sections or otherwise) setting non-prejudicial guidelines or procedures for assessment/collection work or initiating penalty proceedings, and publish such orders for general information if in the public interest;
authorise any income-tax authority (other than a Joint Commissioner (Appeals) or Commissioner (Appeals)) to admit a late application or claim for exemption, deduction, refund or other relief after the prescribed period, to avoid genuine hardship, and decide it on merits;
relax, for reasons recorded, a compliance requirement under Chapter IV or VIII where the assessee failed to comply due to circumstances beyond their control, provided the requirement is met before the relevant assessment is completed.
Parliamentary oversight
Every order issued under the hardship-relaxation power for Chapter IV/VIII requirements must be laid before each House of Parliament.
Step-by-step flow for testing a Board instruction under Section 239
- 1
Is it an order, instruction or direction of the Board for the proper administration of the Act?
Under Section 239(1), income-tax authorities and all others employed in the execution of the Act must observe and follow it.
- 2
Does it require a particular assessment, require a case to be disposed of in a particular manner, or interfere with the appellate discretion of a Joint Commissioner (Appeals) or Commissioner (Appeals)?
- Yes: Section 239(2) does not allow such an instruction.
- No: Go to the next step.
- 3
Is it a general or special order under Section 239(3)(a)?
It may set guidelines, principles or procedures for assessment, collection or starting penalty proceedings, but must not be prejudicial to assessees. If the Board thinks it necessary in the public interest, it may be published and circulated in the prescribed manner.
- 4
Is a late application or claim involved?
Under Section 239(3)(b), to avoid genuine hardship, the Board may authorise an income-tax authority (other than a Joint Commissioner (Appeals) or Commissioner (Appeals)) to admit an application or claim for exemption, deduction, refund or other relief after the time allowed, and to decide it on merits.
- 5
Is a requirement for a deduction under Chapter IV or VIII to be relaxed?
Under Section 239(3)(c) the Board may relax it by general or special order, with reasons, only if the default was due to circumstances beyond the assessee's control and the assessee complied before the assessment for that tax year was completed. Every such order is laid before each House of Parliament (Section 239(4)).
- Both conditions met and an order covers the case: The requirement can be relaxed.
- Either condition not met: Section 239(3)(c) does not help.
Practical checklist
Do
- Check whether a Board instruction applies to the officer and tax issue.
- Distinguish general administrative guidance from a direction on a particular assessment outcome.
Avoid
- Assume the Board may dictate the result of an individual assessment or appeal.
Illustrative example
Worked example: a missed deduction requirement
Hypothetical facts (illustration only, not a real taxpayer): A small company claims a deduction under a provision of Chapter VIII. It misses one procedural requirement of that provision because a flood closes its office for several weeks. It completes the requirement before the assessment for that tax year is completed. The Board has issued a general order under Section 239(3)(c), with reasons, that covers this class of cases.
Beyond control
The flood that closed the office is a circumstance beyond the company's control, so the first condition in Section 239(3)(c)(i) is met on these facts.
Compliance in time
The company complied before completion of the assessment for the tax year in which the deduction is claimed, so Section 239(3)(c)(ii) is met.
Order exists
Relaxation depends on a Board order under Section 239(3)(c). Here one covers the case, so the requirement can be relaxed.
Limits
The Board could not instead direct the Assessing Officer to allow this company's deduction as a particular case outcome; Section 239(2)(a) forbids that.
Outcome
- The missed requirement can be relaxed under the Board's order and the claim decided on that basis.
- Without a Board order under Section 239(3)(c), the section alone gives no relaxation.
Frequently asked questions
Can the Board direct an officer to decide a specific taxpayer's case in a particular way?
No - Section 239(2) expressly bars any instruction that requires a particular assessment outcome in a particular case, or that interferes with the appellate discretion of a Commissioner (Appeals) or Joint Commissioner (Appeals).
Can a late claim for a deduction or refund still be admitted?
Yes, potentially - Section 239(3)(b) lets the Board authorise an income-tax authority to admit a late application or claim to avoid genuine hardship, and decide it on merits.
What conditions apply to relaxing a Chapter IV or VIII deduction requirement?
The default must have been due to circumstances beyond the assessee's control, and the assessee must comply with the requirement before the assessment for that tax year is completed.
Need help applying this provision to your situation?
Talk to our tax team about hardship relief or a late claimLast updated 9 October 2026