Section 272 — Power of Joint Commissioner to issue directions in certain cases. Successor to s.144A of the 1961 Act.
Section 272 is in Chapter XVI — Procedure for Assessment, which runs from section 268 to section 301.
Sub-section (1) allows a Joint Commissioner, on his own motion, on a reference from the Assessing Officer, or on the application of an assessee, to call for and examine the record of any proceeding in which an assessment is pending. If he considers it necessary or expedient, having regard to the nature of the case, the amount involved or any other reason, he may under clause (a) issue such directions as he thinks fit for the guidance of the Assessing Officer to enable him to complete the assessment, and under clause (b) those directions are binding on the Assessing Officer.
Sub-section (2) forbids directions prejudicial to the assessee without giving him an opportunity of being heard. Sub-section (3) provides that no direction as to the lines on which an investigation connected with the assessment should be made is to be deemed prejudicial to the assessee.
Large or unusual assessments benefit from a view taken above the Assessing Officer, and the section supplies a route for that while the assessment is still open. Because the direction binds the Assessing Officer, sub-section (2) attaches a hearing where it would go against the assessee, and sub-section (3) stops that safeguard being used to contest ordinary investigative instructions.
The power exists only while an assessment is pending; once complete, the section has nothing to operate on. It runs in three directions, and the one most often forgotten is the assessee's own application. The direction is not advice — sub-section (1)(b) makes it binding. The hearing right is conditional on the direction being prejudicial, and sub-section (3) removes from that category any direction about the lines of investigation, so a hearing cannot be demanded merely because a line of enquiry has been opened.
While a company's assessment is pending, the Assessing Officer refers a difficult question to the Joint Commissioner, who examines the record and issues directions on how the item is to be dealt with; those directions bind the Assessing Officer. If they go against the company, sub-section (2) requires it to be heard first; if they merely tell the Assessing Officer what lines of investigation to pursue, sub-section (3) means no hearing is required.
During a pending assessment — as a notice of hearing from the Joint Commissioner before a prejudicial direction, or in an assessment order recording that it was framed in accordance with his directions. An assessee can also start the process by applying to the Joint Commissioner.
on his own motion or on a reference being made to him by the Assessing Officer or on the application of an assessee
No directions which are prejudicial to the assessee shall be issued under sub-section (1) without giving an opportunity of being heard to the assessee
See the full 1961 to 2025 concordance.
See the notifications index.