Chapter XIV - Tax Administration
Section 255
Section 255: power to inspect registers of companies
Section 255 permits the listed income-tax authorities to inspect, and if necessary copy, company registers of members, debenture holders or mortgagees, or entries in those registers. A subordinate person needs written authorisation from the relevant officer or authority.
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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
The Assessing Officer, assessment unit, verification unit, the Joint Commissioner or the Joint Commissioner (Appeals) or the Commissioner (Appeals), or any person subordinate thereof and authorised in writing in this behalf by such officer or authority, may inspect, and if necessary, take copies, or cause copies to be taken, of any register of the members, debenture holders or mortgagees of any company or of any entry in such register.
Introduction
Section 255 authorises specified tax authorities to inspect and take copies of a company’s register of members, debenture-holders or mortgagees, or any entry in those registers. It is an information-gathering power with a defined subject matter.
Key takeaways
Registers covered
Members, debenture holders and mortgagees, including individual entries.
Inspection and copies
Listed authorities may inspect and, if necessary, take or cause copies to be taken.
Subordinate authorisation
A subordinate person must be authorised in writing for this purpose.
Scope of inspection
The power covers any register of a company's members, debenture holders or mortgagees, and any entry in such a register.
Who may act
The listed Assessing Officer, assessment and verification units, Joint Commissioner, Joint Commissioner (Appeals), Commissioner (Appeals), or a subordinate person authorised in writing may exercise the power.
Scope and practical relevance
For a company responding to an inspection, match the request to the register of members, debenture holders or mortgagees, or a particular entry in it. The subject matter is specified; this provision does not describe an unrestricted inspection of every company document.
Identify who is exercising the power. The named authorities can act under the section; a subordinate person must have written authorisation from the relevant officer or authority for this purpose.
Limits of this provision
Inspection and taking or causing copies to be taken are the powers described here. Do not treat Section 255 alone as authority for seizure of original records or for a wider search. Any separate action requires its own legal basis.
The section contains no standard notice period or inspection fee. If a direction supplies procedural details, keep that communication and assess it under the applicable framework rather than inventing a universal timetable.
Step-by-step review
1. Identify the officer, authority or unit and any subordinate person carrying out the inspection.
2. For a subordinate person, check the written authorisation identifying the relevant purpose.
3. Locate the requested register or entry and arrange access and necessary copies within the actual scope of the request.
4. Keep an accurate record of what was inspected or copied and any follow-up communication.
Hypothetical example
Hypothetical illustration: a subordinate officer seeks copies of a company’s register of members. The company’s compliance team checks the written authorisation, identifies the relevant register and keeps a record of the copies supplied. It should not assume that this inspection provision, without more, authorises taking away every original corporate record.
Records to prepare
Identity and designation of the person exercising the power.
Written authorisation where the person is subordinate to the listed authority.
The relevant register or entry and a record of the inspection or copies provided.
Official amended Act source
Step-by-step flow for applying Section 255
- 1
Is the person inspecting one of the listed authorities?
The Assessing Officer, assessment unit, verification unit, Joint Commissioner, Joint Commissioner (Appeals) or Commissioner (Appeals).
- Yes: Go to step 3.
- No: Go to the next step.
- 2
Is the person subordinate to such an authority and authorised in writing by it?
- No: Section 255 gives no power of inspection.
- Yes: Go to the next step.
- 3
Is the record a register of members, debenture holders or mortgagees of a company, or an entry in it?
- No: Section 255 does not cover it; another provision would be needed.
- Yes: Go to the next step.
- 4
Inspect and, if necessary, copy
The register or entry may be inspected, and copies may be taken or caused to be taken if necessary.
Practical checklist
Do
- Identity and designation of the person exercising the power.
- Written authorisation where the person is subordinate to the listed authority.
- The relevant register or entry and a record of the inspection or copies provided.
Illustrative example
Worked example: verifying a claimed shareholding
Hypothetical facts (illustration only, not a real taxpayer): During an assessment, an individual says he holds 10% of the shares of a private company. The Assessing Officer authorises a subordinate officer in writing to verify this at the company's office. The officer also asks to see the company's board minutes. Facts are assumed.
Authority
The subordinate officer holds a written authorisation from the Assessing Officer, so he may act under Section 255.
Register of members
He may inspect the register of members and the entry for the individual.
Copies
If necessary, he may take a copy of that entry, or have one made.
Board minutes
Board minutes are not a register of members, debenture holders or mortgagees, so Section 255 does not cover them.
Outcome
- The shareholding entry can be inspected and copied under Section 255.
- Access to other company records needs a different provision of the Act.
Glossary
- Register entry
- An individual entry in one of the company registers named in Section 255.
- Written authorisation
- The authority required by the section when a subordinate person exercises this inspection power.
Frequently asked questions
May an authorised officer take copies of entries?
Yes. If necessary, Section 255 permits copies to be taken or caused to be taken.
Can a subordinate person inspect without written authorisation under this wording?
The section requires a subordinate person to be authorised in writing by the relevant officer or authority.
Does Section 255 itself authorise seizure of all company records?
It provides for inspection and necessary copies of the named registers or entries. A different action needs its own legal basis.
Does the section prescribe a standard inspection notice period?
No such period is specified in Section 255. Examine the actual communication and applicable procedure.
Need help applying this provision to your situation?
Get help responding to an income-tax noticeLast updated 10 October 2026