Rule 264: Proceedings before the Inquiry Officer in a practitioner inquiry
Rule 264 lays down how the Inquiry Officer runs the inquiry. Only charges not admitted are inquired into. The officer considers relevant documents and oral evidence, the practitioner may cross-examine witnesses and give evidence in person, reasons are recorded if a witness is not examined, and a report with findings and reasons on each charge is prepared at the end. Rules 261 to 268 set out the inquiry procedure before a practitioner can be disqualified under section 515(5)(b) for misconduct.
Official notified Income-tax Rules, 2026Need advice on Rule 264?
This article is for general information. Read the official Rules and applicable Act amendments, including the Taxation and Other Laws (Amendment) Act, 2026. If you need professional advice for your situation, contact Bizeneed.
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Bare law
Rule 264 - Proceedings before Inquiry Officer
(1) On receipt of the written statement of defence, or if no such statement is received within the time specified, the Inquiry Officer shall inquire into such of the charges as are not admitted.
(2) The Inquiry Officer shall, in the course of the inquiry, consider such documentary evidence and take such oral evidence as may be relevant or material in regard to the charges.
(3) The authorised income-tax practitioner shall be entitled to cross-examine witnesses examined in support of the charges and to give evidence in person.
(4) If the Inquiry Officer declines to examine any witness on the ground that his evidence is not relevant or material, he shall record his reasons in writing.
(5) At the conclusion of the inquiry, the Inquiry Officer shall prepare a report of the inquiry, recording his findings on each of the charges together with the reasons therefor.
Rule breakdown
Steps in the inquiry
Starts on receipt of the written defence, or if none is received in time (Rule 264(1)).
Covers only charges not admitted.
Relevant documentary and oral evidence is considered (Rule 264(2)).
The practitioner may cross-examine witnesses and give evidence in person (Rule 264(3)).
If a witness is refused as irrelevant or immaterial, reasons are recorded in writing (Rule 264(4)).
A report with findings on each charge and reasons is prepared (Rule 264(5)).
Key takeaways
Admitted charges
Charges admitted are not inquired into.
Cross-examination
The practitioner may cross-examine witnesses.
Reasoned report
Findings on each charge with reasons.
Practical checklist
- List the witnesses you want examined and explain their relevance.
- Use your right to cross-examine.
Avoid
- Do not admit a charge in your defence unless you intend to; admitted charges are not inquired into.
FAQs
Will the inquiry go ahead if I do not file a defence?
Yes. Rule 264(1) allows the inquiry to proceed if no statement is received within the time specified.
Can I cross-examine witnesses?
Yes, witnesses examined in support of the charges (Rule 264(3)).
What if the officer refuses to examine my witness?
The officer must record reasons in writing (Rule 264(4)).
Glossary
- Cross-examination
- Questioning of witnesses examined in support of the charges by the practitioner.
- Inquiry report
- The report under Rule 264(5) recording findings on each charge with reasons.