Procedure for assessmentCentral
Section 284 of Income Tax Act 2025
Summary
- This section details who has the power to approve certain tax notices.
- Only four specific senior tax officers can give this approval (known as the "specified authority" or legally authorized officials).
- These senior officers are the Additional Commissioner, the Additional Director, the Joint Commissioner, or the Joint Director.
Practical examples
1Ramesh Kumar, a freelance software developer, had an untaxed bank account with Rs. 15,00,000 from Tax Year 2026-27 that was not declared. The local tax officer wants to reopen Ramesh's tax file and send him a notice under Section 280 on November 15, 2028. Under Section 284, the Joint Commissioner, Mr. Ajay Singh, reviews the case and signs the official sanction (permission) on November 12, 2028, allowing the notice to go out.
2Priya Sharma, a small boutique owner, is suspected of under-reporting her business revenue by Rs. 8,00,000 in Tax Year 2027-28. The tax department wants to issue her a show-cause notice under Section 281 on June 5, 2029, to ask why her assessment should not be reopened. Under Section 284, the Additional Director, Mrs. Sunita Roy, evaluates the case files and grants the necessary sanction (approval) on June 2, 2029.
FAQ
1. What does "sanction" mean under this law?
Sanction means official, written permission or approval that a tax officer must get from a senior officer before they can send you a notice to reopen your tax files.
2. Which senior officers are allowed to give this approval under Section 284?
The only officers who can give this approval are the Additional Commissioner, the Additional Director, the Joint Commissioner, or the Joint Director.
Test yourself
Q1.Which of the following is NOT a senior officer authorized to grant approval under Section 284?
Q2.Section 284 provides the specified authority for the purposes of which two sections?
Q3.Under Section 284, who can act as the specified authority for Section 280 and 281 notices?