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.
