Section 287A and Section 288 of Income Tax Act 1961: Appearance by Registered Valuer and Authorised Representative

Sections 287A and 288 of the Income-tax Act, 1961 deal with representation of an assessee before income-tax authorities and the Income Tax Appellate Tribunal. Section 287A permits representation by a registered valuer in specified valuation matters, while Section 288 permits an assessee to appear through an authorised representative, subject to statutory conditions and disqualifications.

Section 287A - Appearance by Registered Valuer in Certain Matters

Section 287A applies where an assessee is entitled or required to attend before an income-tax authority or the Appellate Tribunal in connection with a matter concerning valuation of an asset. Except where personal attendance is required under Section 131 for examination on oath or affirmation, the assessee may attend through a registered valuer.

In practical terms, Section 287A creates a specialised right of representation for valuation matters. It should be distinguished from the broader right of representation through an authorised representative under Section 288.

Section 288 - Appearance by Authorised Representative

Section 288 permits an assessee who is entitled or required to attend before an income-tax authority or the Appellate Tribunal in connection with proceedings under the Income-tax Act to attend through an authorised representative. The exception is where the assessee is required under Section 131 to attend personally for examination on oath or affirmation.

Who is an authorised representative under Section 288(2)?

An "authorised representative" is a person authorised by the assessee in writing to appear on the assessee's behalf. The statutory categories include:

1. A person related to the assessee in any manner, or a person regularly employed by the assessee.
2. An officer of a Scheduled Bank with which the assessee maintains a current account or has other regular dealings.
3. A legal practitioner entitled to practise in any civil court in India.
4. An accountant.
5. A person who has passed an accountancy examination recognised by the Central Board of Direct Taxes for this purpose.
6. A person who has acquired the educational qualifications prescribed by the Board for this purpose.
7. A person covered by the statutory transitional category relating to practice before income-tax authorities in specified former Union territories before commencement of the Act there.
8. A person who, immediately before commencement of the Income-tax Act, 1961, was an income-tax practitioner within the meaning of the Indian Income-tax Act, 1922 and was actually practising as such.
9. Any other person who may be prescribed.

Meaning of accountant for Section 288

For Section 288, an accountant means a chartered accountant as defined in Section 2(1)(b) of the Chartered Accountants Act, 1949 who holds a valid certificate of practice under Section 6(1) of that Act. The provision also contains exclusions linked to auditor independence and specified relationships or interests, except for the limited purpose of representing the assessee under Section 288(1).

In the case of a company, the exclusion refers to a person who is not eligible for appointment as auditor under Section 141(3) of the Companies Act, 2013. In other cases, the statutory exclusions cover specified persons connected with the assessee, including the assessee or specified partners or members, persons connected with trusts or institutions, persons competent to verify returns, relatives, officers or employees, certain partners or employees of such persons, persons having specified financial interests or relationships, prescribed business relationships, and persons convicted of an offence involving fraud where the prescribed ten-year period has not elapsed.

Disqualification from representing an assessee

Section 288 also identifies circumstances in which a person is not qualified to represent an assessee. These include specified cases involving dismissal or removal from Government service, conviction for an offence connected with income-tax proceedings or specified penalties under the Act, insolvency, and conviction for an offence involving fraud.

The duration of disqualification depends on the statutory ground. In specified cases it may operate permanently, for a period determined by the competent income-tax authority, during continuance of insolvency, or for ten years from the date of conviction for an offence involving fraud.

Professional or other misconduct

Where a legal practitioner or accountant is found guilty of professional misconduct by the authority competent to institute disciplinary proceedings, the resulting order affects the person's right to appear before income-tax authorities in the same manner as it affects the person's professional right to practise. A representative who is neither a legal practitioner nor an accountant may also be disqualified by the prescribed authority for misconduct connected with income-tax proceedings.

Opportunity of hearing and appeal

An order or direction under the relevant disqualification provisions is subject to procedural safeguards. The affected person must be given a reasonable opportunity of being heard. An appeal may be made to the Board within one month of the order or direction, and the order or direction does not take effect until expiry of that period or, where an appeal is filed, until disposal of the appeal.

Meaning of relative under Section 288

For Section 288, "relative" in relation to an individual includes the spouse; brother or sister; brother or sister of the spouse; lineal ascendants or descendants of the individual; lineal ascendants or descendants of the spouse; spouses of specified relatives; and lineal descendants of a brother or sister of either the individual or the individual's spouse.

Difference between Section 287A and Section 288

• Section 287A: specifically concerns appearance by a registered valuer in matters relating to valuation of an asset.
• Section 288: generally concerns appearance by an authorised representative in proceedings under the Income-tax Act, subject to eligibility and disqualification rules.
• Personal examination: neither provision permits substitution of a representative where personal attendance is required under Section 131 for examination on oath or affirmation.

Related provision - Section 131

Section 131 confers specified powers regarding discovery, inspection, enforcing attendance, examination on oath, compelling production of books of account and documents, and issuing commissions. Where an assessee is specifically required under Section 131 to attend personally for examination on oath or affirmation, Sections 287A and 288 do not permit the assessee to substitute that personal attendance with a registered valuer or authorised representative.

This article explains Sections 287A and 288 of the Income-tax Act, 1961 in the legal framework applicable before commencement of the Bharatiya Sakshya Adhiniyam, 2023. The Bharatiya Sakshya Adhiniyam concerns the law of evidence and does not amend these Income-tax Act provisions.