The question asks about the constitutional article under which the Finance Commission of India is constituted. This requires knowledge of specific articles of the Indian Constitution related to key bodies and their functions.
Correct Option: A) Article 280 of the Indian Constitution provides for the establishment of a Finance Commission. This commission is constituted by the President of India every five years to recommend the distribution of net proceeds of taxes between the Union and the States, and the allocation of grants-in-aid to the States from the Consolidated Fund of India.
The question asks to identify the legal and constitutional status of the Finance Commission, especially in contrast to the former Planning Commission. Understanding the distinction between constitutional, statutory, and extra-constitutional bodies is key here.
A) A constitutional body, since it is directly established by a specific provision (Article 280) of the Constitution itself — This statement accurately describes the status of the Finance Commission. Article 280 mandates the President to constitute a Finance Commission every five years to recommend the distribution of net proceeds of taxes between the Union and the States, and among the States themselves.
The question asks why the Finance Commission is considered a 'quasi-judicial' body. We need to understand the characteristics of a quasi-judicial body and then evaluate how the Finance Commission's functions align with these characteristics, while also ruling out incorrect descriptions of its powers and composition.
D) Its functions involve carefully assessing and adjudicating, in an impartial, evidence-based manner, the often competing financial claims and needs of the Union and various States — This option correctly identifies the core reason. The Finance Commission acts like a judicial body by hearing arguments (from Union and States), examining evidence (financial data, economic conditions), and making reasoned, impartial decisions (recommendations on tax devolution and grants) to resolve disputes over financial allocations. This adjudicatory role, without being a full-fledged court, is what makes it quasi-judicial.
The question asks about the constitutional authority responsible for constituting the Finance Commission. To answer this, one needs to recall the relevant articles of the Indian Constitution pertaining to the Finance Commission.
Correct Option: A) The President of India is constitutionally empowered to constitute the Finance Commission as per Article 280 of the Indian Constitution.
The question asks about the frequency of the constitution of the Finance Commission in India. This is a direct question about a constitutional body and its operational mandate. The answer can be found by recalling the relevant article of the Indian Constitution.
Correct Option: C) Every five years, or at such earlier time as the President considers necessary
This option accurately reflects the provisions of Article 280(1) of the Indian Constitution regarding the constitution of the Finance Commission. The primary interval is five years, but the President has the discretion to constitute it earlier if circumstances demand.
The question asks about a specific provision in Article 280(1) of the Indian Constitution regarding the establishment of the first Finance Commission. To answer this, one needs to recall the constitutional mandate for the initial constitution of this body.
Correct Option: A) Within two years. Article 280(1) explicitly states that the President shall constitute the first Finance Commission "within two years from the commencement of this Constitution."