Power to transfer cases
[Section-243 as per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]
Section 243(1) of Income Tax Act 2025
243(1) The specified income-tax authority may transfer any case from one or more Assessing Officers subordinate to him (whether with or without concurrent jurisdiction) to any other Assessing Officer or Assessing Officers (whether with or without concurrent jurisdiction) subordinate to him.
Section 243(2) of Income Tax Act 2025
243(2) If the Assessing Officer or Assessing Officers, from whom the case is to be transferred and the Assessing Officer or Assessing Officers, to whom the case is to be transferred are not subordinate to the same specified income-tax authority, and the concerned specified income-tax authorities––
- (a) are in agreement, then the specified income-tax authority from whose jurisdiction the case is to be transferred may pass the order;
- (b) are not in agreement, the order transferring the case may be passed by the Board or any such specified income-tax authority as the Board may, by notification, specify.
Section 243(3) of Income Tax Act 2025
243(3) The order of transfer under sub-section (1) or (2) may be passed by the specified income-tax authority after giving the assessee a reasonable opportunity of being heard wherever it is possible to do so and after recording his reasons therefor.
Section 243(4) of Income Tax Act 2025
243(4) Nothing in sub-section (1) or (2) or (3) shall be considered to require any opportunity of being heard to be given, where the transfer is from any Assessing Officer or Assessing Officers (whether with or without concurrent jurisdiction) to any other Assessing Officer or Assessing Officers (whether with or without concurrent jurisdiction) and the offices of all such officers are situated in the same city, locality or place.
Section 243(5) of Income Tax Act 2025
243(5) The transfer of a case under sub-section (1) or (2) may be made at any stage of the proceedings, and it shall not be necessary to re-issue any notice already issued by the Assessing Officer or Assessing Officers from whom the case is transferred.
Section 243(6) of Income Tax Act 2025
243(6) For the purposes of section 241 and this section, “case”, in relation to any person whose name is specified in any order or direction issued thereunder, means all proceedings under this Act in respect of any year, which may—
- (a) be pending on the date of that order or direction; or
- (b) have been completed on or before such date; or
- (c) be commenced after the date of such order or direction in respect of any year.
Section 243(7) of Income Tax Act 2025
243(7) For the purposes of sections 241, 242 and this section, “specified income-tax authority” means the Principal Director General or Director General or Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner.
FAQs on Section 243 of Income Tax Act 2025
What does Section 243(1) of the Income Tax Act, 2025 empower the specified income-tax authority to do?
It allows the specified income-tax authority to transfer any case from one or more Assessing Officers subordinate to him to any other Assessing Officer or Officers also subordinate to him, regardless of whether they have concurrent jurisdiction.
What happens if the Assessing Officers involved in the transfer are not subordinate to the same specified income-tax authority?
If both specified income-tax authorities agree, the one from whose jurisdiction the case is being transferred may pass the order. If they do not agree, the Board or a specified authority notified by the Board may pass the order.
Is the assessee given a chance to be heard before the case is transferred?
Yes, under Section 243(3), a reasonable opportunity of being heard should be given wherever possible before making the transfer, and the reasons must be recorded.
Are there exceptions to the opportunity of being heard?
Yes, under Section 243(4), no opportunity of being heard is required if the transfer is between Assessing Officers in the same city, locality, or place.
Can a case be transferred at any time during the proceedings?
Yes, Section 243(5) permits a transfer at any stage of the proceedings without the need to re-issue any already issued notices.
What is defined as a “case” under Section 243(6)?
A “case” includes all proceedings under the Act for any year which are pending, completed, or initiated after the date of the transfer order or direction in respect of the person named in that order.
Who qualifies as a “specified income-tax authority”?
Under Section 243(7), this includes the Principal Director General, Director General, Principal Chief Commissioner, Chief Commissioner, Principal Commissioner, or Commissioner.
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