The Income Tax Act, 1961 (‘the IT Act’) in India is administered by the Central Board of Direct Taxes (‘CBDT’).

The Income tax authorities, for administering the IT Act, may be classified into three levels:

·Top level comprising Chief Commissioners and Commissioners,

·Middle level comprising Additional, Joint, Deputy and Assistant Commissioners of Income Tax;

·Lower level comprising Income Tax Officers and Tax Recovery Officers (‘TRO’).

The CBDT has the power to issue circulars, notifications, instructions etc. for administration of the IT Act (which are binding on the tax authorities). Further, certain powers like issuing orders, granting waiver of applicability of certain provisions of the IT Act to the taxpayer, etc. have been vested with Chief Commissioners and Commissioners.

There are Commissioner (Appeals) and the Income Tax Appellate Tribunal (‘ITAT’) for resolving the disputes between the tax payers and the Income Tax Authorities.