Section 256 Income Tax Act 2025: Who Can Conduct Tax Enquiries?

Section 256 gives specified senior income-tax authorities the legal power to make enquiries under the Income-tax Act, 2025 and, for that purpose, exercise the enquiry powers of an Assessing Officer. This guide explains the scope of the provision and what it means for taxpayers.

Current law: The Income-tax Act, 2025 took effect on 1 April 2026. This article discusses Section 256 in the Act as amended by the Finance Act, 2026. Section 256 corresponds to Section 135 of the Income-tax Act, 1961. Always check the applicable law for the relevant tax year.

What does Section 256 provide?

Section 256, titled Power of certain income-tax authorities, authorises the specified senior officers to make any enquiry under the Act. For making such enquiries, they have all the powers that an Assessing Officer possesses under the Act in relation to the making of enquiries.

Key distinction: The provision confers enquiry powers. It does not, merely by itself, transfer every assessment, appeal, search or other statutory function to every officer listed in the section. Other provisions governing jurisdiction, authorisation and procedure remain relevant.

Which income-tax authorities can conduct enquiries?

The following officers are expressly covered by Section 256:

Principal Director General or Director General
Principal Director or Director
Principal Chief Commissioner or Chief Commissioner
Principal Commissioner or Commissioner
Joint Commissioner

These designations are statutory offices. The extent to which an officer can act in a particular matter may also depend on the Act's jurisdictional and administrative provisions.

What are the powers under Section 256?

1. Power to make enquiries

A covered officer can enquire into matters under the Income-tax Act, 2025. The enquiry must have a lawful connection to the administration or application of that Act.

2. Assessing Officer-equivalent enquiry powers

For an enquiry, the covered officer may use the powers available to an Assessing Officer in relation to making enquiries. Depending on the particular statutory provision and its conditions, enquiry-related steps may include calling for information or examining relevant evidence.

3. Other statutory safeguards continue

Section 256 should be read with the specific provision governing the proposed action. For example, Section 246 concerns discovery and production of evidence, while Section 252 addresses calls for information. Their own conditions must be considered.

4. Not an unrestricted search power

The power to make enquiries is different from conducting a search or seizure. Search and seizure are separately regulated by Section 247. Section 256 alone should not be treated as a substitute for the authorisation required under that provision.

Relevant statutory terms

Assessing Officer: An income-tax authority assigned assessment-related powers under the Act, subject to the applicable definition, jurisdiction and statutory allocation of functions. Section 256 refers specifically to that officer's powers in relation to enquiries.

Enquiry: A process of seeking or verifying facts or evidence for purposes authorised by the Act. Section 256 does not supply a separate exhaustive definition of this word.

Income-tax authority: An officer or body recognised under the Act's provisions concerning income-tax authorities, including the relevant appointment and jurisdiction provisions.

Jurisdiction: The legal authority to exercise a statutory power over a person, matter or area. See Section 241 and Section 242.

Practical examples

Example 1: Enquiry by a Commissioner

A Commissioner seeks information relevant to a matter under the Act. Section 256 recognises the Commissioner's competence to make enquiries and exercise the Assessing Officer's enquiry-related powers, subject to applicable statutory conditions.

Example 2: Request for documents

A Joint Commissioner requests records during an enquiry. Whether a particular document request is enforceable, and what procedure applies, should be evaluated under Section 256 together with the specific information-gathering or evidence provision relied upon.

Example 3: Search of premises

A taxpayer receives notice of a proposed search. Section 256 is not, on its own, the search-warrant provision; the separate requirements of Section 247 must be considered.

Relationship with the Income Tax Act 1961

Section 256 of the 2025 Act broadly carries forward the enquiry-power rule in Section 135 of the Income-tax Act, 1961. Do not confuse it with Section 256 of the 1961 Act, which dealt with a different subject: references of questions of law to the High Court.

Frequently asked questions

Can a Joint Commissioner make an income-tax enquiry?

Yes. A Joint Commissioner is among the authorities named in Section 256, and may exercise Assessing Officer-equivalent powers for the purpose of making enquiries under the Act.

Does Section 256 allow every senior officer to issue an assessment order?

No. Section 256 grants enquiry-related powers. Authority to make an assessment order must be established under the applicable assessment, jurisdiction and delegation provisions.

Can a taxpayer question an enquiry made under Section 256?

A taxpayer may examine whether the officer is covered by the provision, whether the enquiry is connected with the Act and whether the particular step complies with applicable procedural requirements. Available remedies depend on the facts and the action taken.

Is Section 256 the same as Section 256 of the 1961 Act?

No. Section 256 of the 2025 Act corresponds to Section 135 of the 1961 Act, not Section 256 of that earlier Act.

Official statutory references

For the enacted text and any later amendments, consult the Income-tax Act, 2025 as amended by the Finance Act, 2026 and the Income Tax Department's Act and Rules resource page.

Updated: 11 November 2026. General legal information; not a substitute for advice on a particular notice or proceeding.