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TMI BlogPower to issue instruction for the purpose of the proper administration of this Act : Clause 239 of Income Tax Bill, 2025 Vs. Section 119 of Income Tax Act, 1961X X X X Extracts X X X X X X X X Extracts X X X X ..... ffers a comparative analysis with Section 119 of the Income Tax Act, 1961. Objective and Purpose The primary objective of both Clause 239 and Section 119 is to empower the CBDT to guide, control, and streamline the functioning of income-tax authorities by issuing binding orders, instructions, and directions. This mechanism is essential for: * Ensuring uniformity and consistency in the administration of tax laws across the country. * Facilitating efficient and effective collection of revenue. * Enabling the Board to respond to emerging administrative challenges and policy considerations. * Providing relief in cases of genuine hardship to taxpayers by relaxing procedural requirements or condoning delays. * Balancing administrative control with judicial independence in the exercise of quasi-judicial functions by appellate authorities. The legislative intent is to strike a balance between centralized oversight for uniformity and the autonomy of tax authorities in individual assessments and appellate proceedings. This is achieved by circumscribing the Board's powers with specific safeguards and exceptions. Detailed Analysis of Clause 239 of the Income Tax Bill, 2025 ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssees) regarding guidelines, principles, or procedures for assessment, collection, or initiation of penalty proceedings. If deemed necessary in the public interest, these orders may be published and circulated for general information. * (b) Condonation of Delay in Application or Claim: To avoid genuine hardship, the Board may authorize any income-tax authority (except Joint Commissioner (Appeals) or Commissioner (Appeals)) to admit applications or claims for exemption, deduction, refund, or other reliefs after the expiry of the statutory period. Such applications must be dealt with on merits as per law. This provision is a significant taxpayer-friendly measure, providing flexibility in exceptional circumstances. * (c) Relaxation of Deduction Requirements: The Board may, by general or special order (with reasons specified), relax any requirement in Chapter IV or VIII, where the assessee failed to comply with such requirement for claiming deduction, subject to: * The default was due to circumstances beyond the assessee's control. * The assessee complied with the requirement before completion of assessment for the relevant tax year. This enables relief in cases of proced ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bordinate authorities to observe and follow the Board's directives, establishing a clear chain of command and administrative discipline. 3. Safeguards Against Overreach The express prohibition on directing individual assessments or interfering in appellate discretion is identically retained in both provisions. This reflects a strong and consistent legislative intent to insulate quasi-judicial functions from administrative interference, a principle repeatedly upheld by judicial precedents. 4. Specific Administrative Powers * Relaxation of Provisions: * Section 119(2)(a) refers to a wide array of sections (including those relating to assessment, reassessment, rectification, penalty, etc.) for which the Board may issue orders, while Clause 239(3)(a) lists a different set of sections, reflecting an updated legislative framework in the 2025 Bill. Notably, Clause 239 refers to sections relevant to the new Bill, omitting those obsolete or replaced in the new regime. * Both provisions allow the Board to issue general or special orders regarding classes of income or cases, with the caveat that such directions must not be prejudicial to assessees. * Condonation of Delay: * B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uncements have emphasized the need for reasoned orders and non-arbitrariness in the exercise of such discretion. * Procedural Safeguards: The requirement for reasons to be specified in relaxation orders (Clause 239(3)(c)) and for such orders to be laid before Parliament introduces procedural rigor, reducing the risk of arbitrary exercise but also potentially increasing administrative workload and delay. Comparative Analysis in table: Clause 239 of the Income Tax Bill, 2025 vs. Section 119 of the Income Tax Act, 1961 Aspect Clause 239 (2025 Bill) Section 119 (1961 Act) Observations General Power to Issue Instructions Yes (Sub-section 1) Yes (Sub-section 1) Substantially similar language and scope Prohibition on Individual Case Directions Yes (Sub-section 2) Yes (Proviso to Sub-section 1) Both protect quasi-judicial independence Specific Administrative Powers Sub-section 3 (a)-(c) Sub-section 2 (a)-(c) Similar, with differences in referenced sections and chapters Publication of Orders Yes (Sub-section 3(a)(ii)) Yes (Sub-section 2(a)) Both allow public interest publication Admission of Belated Claims Yes (Sub-section 3(b)) Yes (Sub-sect ..... X X X X Extracts X X X X X X X X Extracts X X X X
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