Jurisdiction of income-tax authorities
[Section-241 as per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]
Section 241(1) of Income Tax Act 2025
241(1) The income-tax authorities shall exercise all or any of the powers and perform all or any of the functions conferred on, or assigned to, such authorities under this Act as per such directions as the Board may issue for the exercise of the powers and performance of the functions by all or any of those authorities.
Section 241(2) of Income Tax Act 2025
241(2) Any income-tax authority, being an authority higher in rank, may, if so directed by the Board, exercise the powers and perform the functions of an income-tax authority lower in rank and any such direction issued by the Board shall be deemed to be a direction issued under sub-section (1).
Section 241(3) of Income Tax Act 2025
241(3) The directions of the Board under sub-section (1) may authorise any other income-tax authority to issue orders in writing for the exercise of the powers and performance of the functions by all or any of the other income-tax authorities who are subordinate to it.
Section 241(4) of Income Tax Act 2025
241(4) In issuing the directions or orders referred to in sub-sections (1), (2) and (3), the Board or other income-tax authority authorised by it may have regard to any one or more of the following criteria:—
- (a) territorial area;
- (b) persons or classes of persons;
- (c) incomes or classes of income; and
- (d) cases or classes of cases.
Section 241(5) of Income Tax Act 2025
241(5) Without prejudice to sub-sections (1), (2) and (3), the Board may, by general or special order, subject to such conditions, restrictions or limitations as specified therein––
- (a) authorise any Principal Director General or Director General or Principal Director or Director to perform such functions of any other income-tax authority as may be assigned to him by the Board;
- (b) empower the specified income-tax authority to issue orders in writing that the powers and functions assigned to the Assessing Officer under this Act in respect of any specified area, or persons or classes of persons, or incomes or classes of income, or cases or classes of cases, shall be exercised or performed by an Additional Commissioner or an Additional Director or a Joint Commissioner or a Joint Director.
Section 241(6) of Income Tax Act 2025
241(6) Where any order is made under sub-section (5)(b), references in any other provision of this Act or in any rule made thereunder, to the Assessing Officer shall be deemed to be references to such Additional Commissioner or Additional Director or Joint Commissioner or Joint Director by whom the powers and functions are to be exercised or performed under such order, and any provision of this Act requiring approval or sanction of the Joint Commissioner shall not apply.
Section 241(7) of Income Tax Act 2025
241(7) The directions and orders referred to in sub-sections (1), (2) and (3) may, wherever considered necessary or appropriate for the proper management of work, require two or more Assessing Officers (whether or not of the same class) to exercise and perform, concurrently, the powers and functions in respect of any area, or persons or classes of persons, or incomes or classes of income, or cases or classes of cases, and––
- (a) where such powers and functions are exercised and performed concurrently by the Assessing Officers of different classes, any authority lower in rank amongst them shall exercise the powers and perform the functions as any higher authority amongst them may direct; and
- (b) references in any other provision of this Act or in any rule made thereunder to the Assessing Officer shall be deemed to be references to such higher authority and any provision of this Act requiring approval or sanction of any such authority shall not apply.
Section 241(8) of Income Tax Act 2025
241(8) Irrespective of anything contained in any direction or order issued under this section, or in section 242, the Board may, by notification, issue any direction for the purposes of furnishing of the return of income or the doing of any other act or thing under this Act or any rule made thereunder by any person or class of persons.
Section 241(9) of Income Tax Act 2025
241(9) The income-tax authority exercising and performing the powers and functions in relation to the person or class of persons referred to in sub-section (8) shall be such authority as specified in the notification issued under that sub-section.
FAQs on Section 241 of Income Tax Act 2025
What is the role of the Board in determining the jurisdiction of income-tax authorities?
The Board has the power to issue directions guiding how income-tax authorities shall exercise their powers and perform their functions under the Act.
Can a higher-ranked income-tax authority perform the duties of a lower-ranked authority?
Yes, if the Board directs so, a higher-ranked income-tax authority may exercise the powers and perform the functions of a lower-ranked authority.
Can the Board delegate the power to issue jurisdictional orders to other authorities?
Yes, the Board may authorize another income-tax authority to issue written orders for other authorities subordinate to it.
On what basis can the Board or other authorities issue directions or orders related to jurisdiction?
They may consider factors such as territorial area, persons or classes of persons, incomes or classes of income, and cases or classes of cases.
Can the Board assign cross-functional roles among income-tax authorities?
Yes, the Board can authorize a Director General, Principal Director, or similar authority to perform functions of any other income-tax authority.
Is it possible for someone other than an Assessing Officer to perform assessment functions?
Yes, the Board can empower an Additional Commissioner, Additional Director, Joint Commissioner, or Joint Director to perform such functions.
What happens when such substitution of roles occurs?
Any reference to the Assessing Officer in the Act or rules shall be construed as referring to the officer who is assigned those powers under the Board’s order.
Can more than one Assessing Officer exercise powers over the same jurisdiction?
Yes, two or more Assessing Officers may concurrently exercise powers over the same area, persons, incomes, or cases, if so directed.
Who takes precedence when multiple Assessing Officers of different classes have concurrent jurisdiction?
The lower-ranked Assessing Officer must follow directions from the higher-ranked officer among them.
What if a provision requires approval or sanction from a Joint Commissioner in such cases?
Such requirement will not apply when powers are concurrently exercised under such directions.
Can the Board issue directions overriding earlier orders or directions?
Yes, the Board may issue directions via notification for filing returns or doing any act under the Act, regardless of existing orders or directions.
Who will be the authority responsible when such overriding directions are issued?
The income-tax authority specified in the notification issued under Section 241(8) shall be responsible for the concerned person or class of persons.
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