Jurisdiction means legal authority over a certain area or certain persons. Generally, it is an authority given to a department/legal body to deal with and make pronouncements on legal matters. It can also be defined as the limit of a judicial authority or legally constituted body to the extent to which they can exercise authority over suits, cases, appeals etc.

Jurisdiction was introduced mainly with the reason that department/legal body can try, adjudicate and investigate matters which fall within the geographical boundaries of its authority

JURISDICTION OF ASSESSING OFFICERS

Section 124 of the Income-tax Act, 1961, states the jurisdiction of the Assessing Officer.

The Assessing Officer shall have jurisdiction over any area in which he shall have jurisdiction

(a) In respect of any person carrying on a business or profession, if the place at which he carries on his business or profession is situated within the area, or where his business or profession is carried on in more places than one, if the principal place of his business or profession is situated within the area, and

(b) In respect of any other person residing within the area.

Any question regarding jurisdiction to assess any other person, shall be decided by the Principal Director General or Director General or the Principal Chief Commissioner or Chief Commissioner or the Principal Commissioner or Commissioner.

Further, in case of question relating to areas within the jurisdiction of different Principal Directors General or Directors General or Principal Chief Commissioners or Chief Commissioners or Principal Commissioners or Commissioners, it shall be decided by the Principal

Directors General or Directors General or Principal Chief Commissioners or Chief Commissioners or Principal Commissioners or Commissioners concerned, or if they are not in agreement, by the Board or by such Principal Director General or Director General or Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner as the Board may, by notification in the Official Gazette, specify.

QUESTIONING THE JURISDICTION OF AN ASSESSING OFFICER

No person can question the jurisdiction of the Assessing Officer in case:

1. Where he has made a return under sub-section (1) of section 115WD or under sub-section (1) of section 139, after the expiry of one month from the date on which he was served with a notice under sub-section (1) of section 142 or sub-section (2) of section 115WE or sub-section (2) of section 143 or after the completion of the assessment, whichever is earlier;

2. Where he has made no such return, after the expiry of the time allowed by the notice under sub-section (2) of section 115WD or subsection (1) of section 142 or under sub-section (1) of section 115WH or under section 148 for the making of the return or by the notice under the first proviso to section 115WF or under the first proviso to section 144 to show cause why the assessment should not be completed to the best of the judgment of the Assessing Officer, whichever is earlier;

3. Where an action has been taken under section 132 or section 132A, after the expiry of one month from the date on which he was served with a notice under sub-section (1) of section 153A or sub-section (2) of section 153C or after the completion of the assessment, whichever is earlier.

CIRCUMSTANCES UNDER WHICH AN INCOME TAX FILE CAN BE TRANSFERRED

Income tax file can be transferred in two ways:

1. By the Assessee

2. By the Department

BY THE ASSESSEE

An assessee can file an application to transfer his Income Tax File from one Assessing Officer (AO) to another. Normally, such situation arises when an assessee shifts from one place to another due to which, jurisdiction of an assessing officer is transferred.

BY THE DEPARTMENT

A file can be transferred from one Assessing Officer (AO) to another by the Tax Department/Authority itself. Section 124 of the Income-tax Act, 1961, gives the power to the Department to transfer the cases.

The Principal Director General or Director General or Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner have the power to transfer any case from one Assessing Officer subordinate to him to any other Assessing Officer or Assessing Officer subordinate to him, after giving the assessee a reasonable opportunity of being heard in the matter

OPPORTUNITY OF BEING HEARD

There is no requirement to give opportunity of being heard to assessee in case where the transfer is between Assessing Officers whose offices are situated in the same city, locality or place.

INSTANCES WHEN DEPARTMENT CAN TRANSFER THE FILE

1. In case of search, usually on administrative directions all files of a group are transferred to one assessing officer. For this purpose normally files are being transferred to Central Circle.

2. If Total Income of an assessee increases, then file can be transferred to Addl.

Commissioner of Income Tax or Asst. Commissioner of Income Tax or if Income decreases then it can be sent back to current assessing officer. Generally these transfers are made on administrative directions.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.