Section 256: power of certain income-tax authorities

Introduction

Section 256 specifies which senior tax authorities may make an enquiry under the Act and grants them Assessing Officer enquiry powers for that purpose.

The grant is confined to making enquiries; the section does not itself confer every other Assessing Officer power.

Key takeaways

Who may enquire

Section 256 lists the Principal Director General or Director General, Principal Director or Director, Principal Chief Commissioner or Chief Commissioner, Principal Commissioner or Commissioner, and Joint Commissioner.

Extent of power

For the purpose of an enquiry, those authorities have the Assessing Officer's enquiry powers under the Act.

Scope and practical relevance

A response to an enquiry should identify both the senior authority and the enquiry being undertaken under the Act. The provision lists the relevant Director, Commissioner and Joint Commissioner levels; a senior designation should be matched to the actual list.

The grant is purpose-specific: the listed authorities have the Assessing Officer’s powers in relation to making enquiries for that purpose. Identify the particular enquiry power and its conditions before deciding what a request requires.

Limits of this provision

The section is not a transfer of all Assessing Officer functions to every senior official for every purpose. Assessment, search, seizure and other powers require examination of their own statutory basis.

An enquiry can involve disputed facts, but Section 256 does not itself decide the resulting liability. Keep evidence submissions distinct from any later assessment or other decision and preserve the relevant record.

Step-by-step review

1. Verify the issuing authority’s designation against the statutory list.

2. Identify the enquiry under the Act and the specific power relied on for the requested step.

3. Organise a point-by-point response with supporting records and note any clarification sought about scope.

4. Retain the request, submissions and acknowledgement, and separately track any subsequent decision or proceeding.

Hypothetical example

Hypothetical illustration: a Joint Commissioner seeks information during an enquiry under the Act. The recipient should not reject the enquiry merely because it did not come from an Assessing Officer. The recipient should still identify the specific enquiry power and respond to its actual requirements; Section 256 is not a substitute for that analysis.

Records to prepare

The enquiry communication and the officer’s designation.

The relevant enquiry provision and the issues on which information is sought.

The response, supporting documents and proof of submission.

Official amended Act source

• Income-tax Act, 2025 as amended by Finance Act, 2026: Section 256

Step-by-step flow for applying Section 256

1. 1

   Is the authority one listed in Section 256?

   Principal Director General, Director General, Principal Director, Director, Principal Chief Commissioner, Chief Commissioner, Principal Commissioner, Commissioner or Joint Commissioner.

   • No: Section 256 does not apply to it.
   • Yes: Go to the next step.
2. 2

   Is it making an enquiry under this Act?

   • No: Section 256 does not apply.
   • Yes: Go to the next step.
3. 3

   Which powers are available?

   All the powers that an Assessing Officer has under the Act in relation to the making of enquiries. Section 256 does not transfer the Assessing Officer's other functions.

4. 4

   Respond to the enquiry as you would to the Assessing Officer

   Requirements issued in the enquiry carry the same force as the Assessing Officer's enquiry powers on which they are based.

Practical checklist

Glossary

Enquiry

The inquiry under the Act for which Section 256 confers the specified Assessing Officer powers.

Purpose-specific power

A power whose use is limited to the statutory purpose for which it is granted.

Frequently asked questions