Rule 265: Order of the prescribed authority after a practitioner inquiry
Rule 265 covers the final order in a misconduct inquiry. The prescribed authority considers the Inquiry Officer's report, records its own findings on each charge and gives reasons where it disagrees. If satisfied that the practitioner is guilty of misconduct in an income-tax proceeding, it orders disqualification from representing an assessee under section 515(1) for a period it decides, and removal of the name from the register for that period. The practitioner receives a copy of the report and the statement of findings. 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 265?
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Rule 265 - Order of the prescribed authority
(1) The prescribed authority shall consider the report of the Inquiry Officer and record its findings on each charge and, where it does not agree with the findings of the Inquiry Officer, shall record the reasons for its disagreement.
(2) If the prescribed authority is satisfied on the basis of its findings on the report of the Inquiry Officer that the authorised income-tax practitioner is guilty of misconduct in connection with any income-tax proceedings, it shall pass an order directing that the authorised income-tax practitioner shall be disqualified to represent an assessee under section 515(1) for such period as it may determine and his name shall be removed from the register for that period.
(3) The prescribed authority shall, while communicating its order under sub-rule (2) furnish to the authorised income-tax practitioner, a copy of the report of the Inquiry Officer and a statement of its findings together with the reasons for disagreement, if any, with the findings of the Inquiry Officer.
Rule breakdown
Findings: Rule 265(1)
Consider the Inquiry Officer's report.
Record findings on each charge.
Give reasons for any disagreement with the Inquiry Officer.
Order: Rule 265(2)
If misconduct is established, disqualify the practitioner from representing an assessee under section 515(1) for the period determined.
Remove the name from the register for that period.
Communication: Rule 265(3)
Copy of the Inquiry Officer's report.
Statement of findings, with reasons for any disagreement.
Key takeaways
Charge-wise findings
The authority records findings on each charge.
Period of disqualification
Determined by the prescribed authority.
Transparency
Report and findings are given to the practitioner.
Practical checklist
- Read the report and findings carefully when the order is received.
Avoid
- Do not represent assessees during the disqualification period.
FAQs
Is the prescribed authority bound by the Inquiry Officer's findings?
No, but it must record reasons where it disagrees (Rule 265(1)).
What penalty can be imposed?
Disqualification from representing an assessee under section 515(1) for a period, with removal from the register for that period (Rule 265(2)).
What documents will I receive with the order?
A copy of the Inquiry Officer's report and a statement of findings with reasons for disagreement, if any (Rule 265(3)).
Glossary
- Disqualification
- An order that the practitioner shall not represent an assessee under section 515(1) for a period.
- Statement of findings
- The prescribed authority's findings on each charge, with reasons for any disagreement.