Sections 255 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Four short sections of Chapter XIV complete the powers of income-tax authorities. Section 255 permits inspection of a company's registers of members, debenture holders and mortgagees. Section 256 lets senior authorities make any enquiry. Section 257 treats proceedings before income-tax authorities as judicial proceedings. Section 258 controls when information about assessees may be shared. This article explains them as per the Income-tax Act, 2025 as amended by the Finance Act, 2026.
Authorities including the Assessing Officer may inspect and copy a company's register of members, debenture holders or mortgagees. Senior authorities may make any enquiry with an Assessing Officer's enquiry powers. Proceedings before an income-tax authority are deemed judicial proceedings, and every income-tax authority is deemed a Civil Court for a specified purpose. Information about assessees may be shared only as section 258 allows, and the decision of the senior authority on an application is final.
By section 1(3), the Act is in force from 1 April 2026, save as otherwise provided. No Finance Act, 2026 amendment is named for these sections. Later amendments, rules and notifications should be checked. For help with a query on information or a notice, see our legal consultation service.
Section 255: inspecting registers of companies
The following may inspect, and if necessary take copies or cause copies to be taken, of any register of the members, debenture holders or mortgagees of any company, or of any entry in such register:
- the Assessing Officer;
- the assessment unit or the verification unit;
- the Joint Commissioner, the Joint Commissioner (Appeals) or the Commissioner (Appeals); or
- any person subordinate to them and authorised in writing in this behalf by such officer or authority.
The section does not require a notice, a hearing, a time limit or prior approval; the text is silent on them. The scheme for faceless exercise of this power is in section 260, covered in our article on sections 259 to 261.
Section 256: power of certain income-tax authorities
The Principal Director General or Director General or Principal Director or Director, the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner and the Joint Commissioner are competent to make any enquiry under the Act. For this purpose, they have all the powers an Assessing Officer has in relation to making enquiries.
Section 257: judicial proceedings
Sub-section (1)
Any proceeding under the Act before an income-tax authority shall be deemed to be a judicial proceeding within the meaning of sections 229 and 267, and for the purposes of section 233, of the Bharatiya Nyaya Sanhita, 2023 (45 of 2023).
Sub-section (2)
Every income-tax authority shall be deemed to be a Civil Court for the purposes of section 215 of the Bharatiya Nagarik Suraksha Sanhita, 2023 (46 of 2023), but not for the purposes of Chapter XXVIII of that Sanhita.
The two Sanhitas are other laws; the reader should check them for what those sections provide. This article explains nothing from them. For the Civil Court powers conferred on authorities under the Act itself, see our post on section 246, summons and civil court powers.
Section 258: disclosure of information relating to assessees
Sub-section (1): to other tax and exchange authorities
The Board, or any other income-tax authority specified by it by an order, may furnish or cause to be furnished to:
| Clause | Recipient |
|---|---|
| (a) | Any officer, authority or body performing functions under any law relating to the imposition of any tax, duty or cess, or dealings in foreign exchange as defined in section 2(n) of the Foreign Exchange Management Act, 1999 (42 of 1999) |
| (b) | Such officer, authority or body performing functions under any other law, if in the opinion of the Central Government it is necessary in the public interest, as it may specify by notification |
What may be furnished is any information received or obtained by any income-tax authority in the performance of its functions under the Act, as may, in the opinion of the Board or other income-tax authority, be necessary for enabling the recipient to perform its functions under that law. The Foreign Exchange Management Act, 1999 is another law; the reader should check it. What the Central Government has notified under clause (b) is not in the text consulted.
Sub-section (2): to a person who applies
The Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner may furnish to a person the information relating to any assessee received or obtained by any income-tax authority in the performance of functions under the Act:
- (a) on an application made by the person in the prescribed form and on being satisfied that it is in the public interest to do so; and
- (b) the decision of that authority shall be final and shall not be called in question in any court of law.
Sub-section (3): notified classes
Irrespective of sub-sections (1) and (2) or any other law, the Central Government may, having regard to practices and usages, customary or any other relevant factors, by notification, direct that no information or document shall be furnished or produced by a public servant in respect of such matters relating to such class of assessees, except to such authorities as are specified in the notification. No such notification is named here.
The four sections at a glance
| Section | Subject | Who acts | Key limit or effect |
|---|---|---|---|
| 255 | Inspect registers of members, debenture holders, mortgagees | Assessing Officer, assessment and verification units, Joint Commissioner, Joint Commissioner (Appeals), Commissioner (Appeals), and authorised subordinates | Inspect and copy; authorisation in writing for subordinates |
| 256 | Any enquiry | Senior authorities and Joint Commissioner | Same enquiry powers as an Assessing Officer |
| 257 | Judicial proceedings | Any income-tax authority | Proceedings deemed judicial; authority deemed Civil Court for section 215 of the Bharatiya Nagarik Suraksha Sanhita, 2023 only |
| 258 | Disclosure of information | Board, specified authorities, Principal Chief Commissioner and others | Sharing with other tax, duty, cess and foreign exchange authorities; on application in public interest; notified classes barred |
A worked example
Names are assumed.
The Assessing Officer is examining a closely held company, Orchard Lane Holdings Ltd.
- Under section 255, he may inspect and take copies of its register of members and of its register of debenture holders, or authorise in writing a subordinate to do so.
- Under section 256, the Principal Commissioner may himself make an enquiry and has all the powers of an Assessing Officer in relation to enquiries.
- During the proceedings, section 257(1) treats them as judicial proceedings for the purposes of the sections of the Bharatiya Nyaya Sanhita, 2023 that it names.
- A person who is not a party applies in the prescribed form to the Principal Commissioner for information about the company. Under section 258(2), the Principal Commissioner may furnish it if satisfied that it is in the public interest. His decision is final and not to be called in question in any court of law.
Need help with information held by the tax authorities?
If an authority has asked for a register, or you need to understand who can be told what about an assessee, the first step is to read the section that applies. Our team can help you review the position through our legal consultation service.
Key takeaways
- Section 255 lets listed authorities, and subordinates authorised in writing, inspect and copy company registers of members, debenture holders and mortgagees.
- Section 256 gives senior authorities the Assessing Officer's powers of enquiry.
- Section 257 deems proceedings before income-tax authorities to be judicial proceedings.
- Section 258 allows sharing of information with other tax, duty, cess and foreign exchange authorities and, in the public interest, with others notified.
- A decision under section 258(2) is final and cannot be called in question in any court of law.
Read next
- Sections 259 to 261: information called by prescribed authority, faceless collection and definitions
- Sections 252 and 254: power to call for information and to collect information
- Section 246: summons and civil court powers
- Chapter XIV: tax administration
Disclaimer: Based on the Income-tax Act, 2025 (30 of 2025) as amended by the Finance Act, 2026, as consulted on 2 October 2026. It explains the words of the Act only; the Income-tax Rules, 2026, notifications, circulars, later amendments and the way the tax authorities and courts apply these provisions should be checked. This article is general information, not legal advice; check the official text before acting.