Rule 259: Cancelling a practitioner's registration obtained by misrepresentation
Rule 259 deals with registration obtained through misrepresentation. If the specified authority is satisfied at any time that the certificate was obtained by misrepresentation as to an essential fact, it orders removal of the practitioner's name from the register. A reasonable opportunity of being heard must be given first.
Official notified Income-tax Rules, 2026Need advice on Rule 259?
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Bare law
Rule 259 - Cancellation of certificate obtained by misrepresentation
(1) If at any time the specified authority is satisfied that the certificate of registration was obtained through misrepresentation as to an essential fact, he shall order the removal of the name of the income-tax practitioner from the register.
(2) An order under sub-rule (1) shall not be passed unless the authorised income-tax practitioner has been given a reasonable opportunity of being heard regarding in the proposed removal.
Rule breakdown
When it applies
The certificate of registration was obtained through misrepresentation as to an essential fact.
The specified authority may act "at any time".
Safeguard
No removal order without a reasonable opportunity of being heard on the proposed removal (Rule 259(2)).
Effect
Once the name is removed, the certificate stands cancelled under Rule 258.
Key takeaways
Essential fact
Misrepresentation must relate to an essential fact.
Hearing
A reasonable opportunity of being heard is mandatory.
Effect
Removal cancels the certificate (Rule 258).
Practical checklist
- Make sure every statement in Form No. 171 is accurate.
Avoid
- Do not overstate qualifications or practice period in the application.
FAQs
Is there a time limit for action under Rule 259?
The rule says "at any time".
Must the practitioner be heard?
Yes. Rule 259(2) bars an order without a reasonable opportunity of being heard.
What happens to the certificate?
It stands cancelled when the name is removed (Rule 258).
Glossary
- Misrepresentation
- An untrue statement as to an essential fact by which the certificate was obtained.
- Specified authority
- Defined in Rule 250(e).