Amended and updated notes on section 130 of Income Tax Act 1961 as amended by the Finance Act 2022 and Income-tax Rules, 1962. Detail discussion on provisions and rules related to Faceless jurisdiction of income-tax authorities.
Chapter XIII (Sections 116 to 138) of the Income Tax Act 1961 deals with the provisions related to Income-tax Authorities. Section 130 of IT Act 1961-2020 provides for Faceless jurisdiction of income-tax authorities.
Recently, we have discussed in detail section 129 (Change of incumbent of an office) of IT Act 1961. Today, we learn the provisions of section 130 of Income-tax Act 1961. The amended provision of section 130 is effective for financial year 2022-23 relevant to the assessment year 2023-24.
In this article, you will learn detail of the provisions of section 130 of the Income Tax Act, 1961 Bare Act read with the Income-tax Rules, 1962, regulations, notifications, circulars, orders and Press Release by CBDT, Income Tax Department and the Ministry of Law and Justice, Government of India.
Section-130: Faceless jurisdiction of income-tax authorities
[Section 130 was inserted w.e.f. 01.11.2020 by the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020]
Section 130(1) of Income Tax Act
The Central Government may make a scheme, by notification in the Official Gazette, for the purposes of—
(a) exercise of all or any of the powers and performance of all or any of the functions conferred on, or, as the case may be, assigned to income-tax authorities by or under this Act as referred to in section 120; or
(b) vesting the jurisdiction with the Assessing Officer as referred to in section 124; or
(c) exercise of power to transfer cases under section 127; or
(d) exercise of jurisdiction in case of change of incumbency as referred to in section 129,
so as to impart greater efficiency, transparency and accountability by—
- (i) eliminating the interface between the income-tax authority and the assessee or any other person, to the extent technologically feasible;
- (ii) optimising utilisation of the resources through economies of scale and functional specialisation;
- (iii) introducing a team-based exercise of powers and performance of functions by two or more income-tax authorities, concurrently, in respect of any area or persons or classes of persons or incomes or classes of income or cases or classes of cases, with dynamic jurisdiction.
Section 130(2) of Income Tax Act
The Central Government may, for the purpose of giving effect to the scheme made under sub-section (1), by notification in the Official Gazette, direct that any of the provisions of this Act shall not apply or shall apply with such exceptions, modifications and adaptations as may be specified in the notification:
Provided that no direction shall be issued after the 31st day of March, 2022.
Section 130(3) of Income Tax Act
Every notification issued under sub-section (1) and sub-section (2) shall, as soon as may be after the notification is issued, be laid before each House of Parliament.