Central Board of Revenue ( CBR ) :-
It is the highest executive authority of income tax law for the purpose of tax collection this statutory body is appointed by the federal govt. This board is also responsible for the collection of sales tax and wealth tax. The board of revenue consists of the four members. There is also full time chairman who is also appointed by the federal government.
The board issues instructions orders and rules for the income tax department. But board cannot interfere the affairs of the income tax appellate tribunals.
Powers and Functions of the Central Board Of Revenue (CBR) :-
For the proper administration of income tax law following powers is given by the finance ministry to the central board of revenue.
- Appointing Authority :-
Central board of revenue has the authority to appoint income tax officers at various levels from regional commissioners to income tax officers. The central board of revenue can also appoint the number of qualified persons as values and fixes their salaries.
- Controlling Power :-
The central board of revenue controls the working of this entire income tax department. It tries to maximize the revenue of the income tax department. It also makes efforts to minimize the difficulties of the tax payers.
- Formulation Of Rules :-
The central board of revenue is authorities to formulate the rules and instruct the income tax officers in respect of income tax collection.
- Distribution Of Work :-
The central board of revenue assigns the work to commissioners, directors of survey and other senior officers.
The central board of revenue controls the working of the entire income tax department. It tries to maximize the revenue of the income tax department. It also makes efforts minimize the difficulties of the tax payers.
- Transfer Of Appeal Power :-
The central board of revenue can transfer an appeal from the appellate assistant commissioner to the commissioner of income tax to determine the jurisdiction of appellate assistant commissioner it can delegate its power to the commissioners.
- Power In Respect Of Tax Credit :-
For the purpose of tax credit the central board of revenue can approve any undertaking to be treated as industrial under taking on the recommendation of the federal govt.
- Registration Of Income Tax Practitioners :-
Central board of revenue registers qualified persons as income tax practitioners. It also makes rules for the practitioners code of conduct.
- Powers Regarding Welfare Funds :-
The central board of revenue can exercise powers in respect of approved gratuity funds and provident funds.
- Powers In Respect Of Foreign Association :-
The central board of revenue has the power to treat the foreign association as a company for the purpose of income tax. This can be done by the central board of revenue or general orders for any assessment year.
- License Cancellation Power :-
Central board of revenue has the power to cancel the license of any practitioner who is not working according the rules.
- Transfer Of Power :-
The central board of revenue can transfer the power of income tax officer to a senior officer like inspection assistant commissioner.
- Power About Income Year :-
The central board of revenue is empowered to consider any period as an income in case of any person or class of persons.
- Power About Disputed Jurisdiction :-
The central board of revenue has also power to determine the disputed jurisdiction. For instance if two regional commissioners of income tax are not in agreement regarding the jurisdiction of deputy commissioner of income tax to assess any person in that situation central board of revenue has power to determine the jurisdiction.
- Direction Of Power :-
In respect of any case or any area the board can direct those powers conferred upon the deputy commissioner and additional commissioner income tax which will be exercised by additional commissioner and commissioner respectively.
- Authorize For Assistance :-
The central board of revenue can authorize any person to guide instruct or assist the deputy commissioner of income tax in case of any proceeding.
- Allocation Of Duties :-
If the same function in respect of the same person or area has been assigned to two or more than two officers, it can allocate the function and distribute the work among them.
- Power Regarding Funds :-
The central board of revenue can also exercise powers regarding approved gratuity funds superannuation fund and provident funds.
- Admit Practitioners Appeal :-
If the registration of income tax practitioner is cancelled the can submit appeal to central board of revenue with in 30 days. Central board of revenue can also admit the appeal even after 30 days if the delay was genuine.
- Regulates The Procedure :-
The central board of revenue can make the rules regarding the procedure of granting approval for tax credit for the modernization of plant, for the investment in share or debentures of “Equity participation fund.”
- Appointment Of Auditor :-
To conduct of the audit of any person CBR can appoint any charted accountant firm as an auditor.
- Approval Of Charitable Institutions :-
For the purpose of tax relief the central board of revenue can approve the charitable institutions.
- Appointment Of Surveys :-
Some times surveys are conducted about various classes to knew the capacity to pay the taxes. For such purpose CBR may appoint any agency or company to conduct such survey.