Direct Tax Laws and International Taxation · CBDT and Other Authorities

Control and Jurisdiction of Income-tax Authorities Under Income-tax Act, 2025

Updated 11 October 2026 · Fact-checked

Control means who is subordinate to whom. Under section 238, the Board notifies which income-tax authority is subordinate to which other. Jurisdiction means which Assessing Officer handles a taxpayer. Under section 242, it follows the area, and for a business, its place or principal place; for others, the place of residence. Section 241 gives the Board the power to allot work.

Understand Control and Jurisdiction of Income-tax Authorities

The Act names many income-tax authorities. They need a clear chain of command and a clear split of work. Two ideas do this job: control and jurisdiction.

Control (section 238). The Board may, by notification, direct that any income-tax authority or authorities specified in it shall be subordinate to such other authority or authorities as the notification specifies. So the chain of command is not fixed in the Act itself. It is set by Board notification.

Allocation of work (section 241). The authorities exercise their powers and functions as per the Board's directions. The Board may have regard to territorial area, persons or classes of persons, incomes or classes of income, and cases or classes of cases. A higher authority can, if the Board so directs, exercise the powers of a lower authority. The Board may also require two or more Assessing Officers to act concurrently. Where they are of different classes, the lower in rank acts as the higher directs.

Jurisdiction of an Assessing Officer (section 242). Once an Assessing Officer is vested with an area, he has jurisdiction over a person carrying on business or profession if the place of business or profession is in the area. If it is carried on in more places than one, the principal place decides. For any other person, the place of residence decides. Disputes on jurisdiction go to the specified income-tax authority. If different specified authorities are involved, they decide together, or the Board (or its specified authority) decides if they disagree.

Transfer and faceless working. Section 243 lets the specified income-tax authority transfer cases. Section 245 lets the Central Government make a faceless scheme with dynamic jurisdiction. You study these in detail under their own topics, but know how they link to sections 241 and 242.

Key rules to remember

Control of authorities: Section 238: Board notification → authority A is subordinate to authority B; Subordination is set by notification of the Board.
Jurisdiction over a business or profession: Section 242(1)(a): place of business in the area; if more than one place, principal place in the area; Applies to a person carrying on business or profession.
Jurisdiction over any other person: Section 242(1)(b): person residing within the area; Residence in the area decides the Assessing Officer.
Who decides a jurisdiction dispute: Section 242(2) and (3): specified income-tax authority; if different authorities disagree, the Board or its notified authority; The Assessing Officer refers the matter before the assessment if not satisfied with the assessee's claim.
Time limit to challenge jurisdiction: Section 242(4): return filed → within one month of notice under section 268(1) or 270(8), or before assessment completes, whichever is earlier; If no return is filed, the time allowed by the notice for the return or the show-cause notice, whichever is earlier.
Specified income-tax authority: Section 243(7): Principal DG, DG, Principal Chief Commissioner, Chief Commissioner, Principal Commissioner or Commissioner; Used in sections 241, 242 and 243.

How to solve Control and Jurisdiction of Income-tax Authorities questions

Most questions give a fact pattern and ask who has jurisdiction, who can transfer, or whether an objection is in time. Work in this order.

1Identify the assessee: does he carry on business or profession, or is he any other person?
2If business or profession, find the place of business. If there are several places, find the principal place.
3If any other person, find where he resides. Match this to the area of the Assessing Officer under the Board's order.
4Check whether the Board's directions under section 241 override the default, for example by class of person, class of income or class of case.
5If there is a dispute, identify who decides: the specified income-tax authority, or the Board if two authorities disagree.
6If the question is about an objection, test the time limit in section 242(4) against the dates given.
7If the question is about a transfer, apply section 243 and check the hearing rule and the same-city exception.
8State the conclusion in one line and cite the section.

Quickest way: Three-question jurisdiction check

When to use it: Use in MCQs and short case questions on who has jurisdiction or who decides.

Business person? Use the principal place of business. Others? Use residence.
Is there a dispute? One authority decides; if two disagree, the Board or its notified authority.
Is the objection raised in time? Compare with the earlier of the one-month period and the assessment completion (return filed) or the notice deadline (no return).

Common mistakes in Control and Jurisdiction of Income-tax Authorities

Using residence to decide jurisdiction over a businessman
Students remember residence from residential status and apply it everywhere.
Fix: For business or profession, use the place of business, or the principal place if there are several. Residence applies to any other person.
Saying the Act itself fixes who is subordinate to whom
Students assume a fixed hierarchy in the Act.
Fix: Section 238 works through a Board notification specifying the subordination.
Thinking the assessee can challenge jurisdiction at any time
Students miss the time bar in section 242(4).
Fix: Once the stated period expires, the jurisdiction of the Assessing Officer cannot be called in question.
Saying the Assessing Officer himself settles a jurisdiction dispute
Students ignore sub-sections (2), (3) and (5).
Fix: If he is not satisfied with the assessee's claim, he refers the matter to the specified income-tax authority, before the assessment is made.
Treating section 238 and section 241 as the same
Both deal with authorities and the Board.
Fix: Section 238 is about subordination. Section 241 is about who exercises which powers by area, persons, income or cases.
Believing a transfer always needs a hearing
Students read only sub-section (3) of section 243.
Fix: Sub-section (4) removes the hearing where all the officers' offices are in the same city, locality or place.

Worked examples

Example 1

Ramesh Traders, run by Ramesh Iyer, has shops in Pune, Nashik and Mumbai. Its head office and main operations are in Pune. Ramesh lives in Nagpur. Which Assessing Officer has jurisdiction over him, assuming each area is vested in a different Assessing Officer?

Show the solution

Ramesh carries on business, so section 242(1)(a) applies, not his residence.
The business is carried on in more than one place.
The rule then looks to the principal place of business, which is Pune.
So the Assessing Officer vested with the area covering Pune has jurisdiction. The Nagpur residence does not decide it.

Answer: The Assessing Officer having jurisdiction over the Pune area, being the principal place of business.

Example 2

Meena Shah, a salaried person residing in Jaipur, filed her return. A notice under section 268(1) was served on her on 10 July. The assessment was completed on 20 September. On 25 September she objected to the jurisdiction of the Assessing Officer. Is the objection valid?

Show the solution

She filed a return, so section 242(4)(a) applies.
The bar operates after one month from service of the notice, or after completion of the assessment, whichever is earlier.
One month from 10 July ends on 10 August. Assessment completed on 20 September, which is later.
The earlier date is 10 August, so the objection was barred from then.
The objection on 25 September is after that date.

Answer: The objection is not valid. It is barred because it was raised after the earlier of the two dates, namely one month from the notice.

Exam tips

Quote the section: 238 for control, 241 for allocation, 242 for jurisdiction, 243 for transfer.
In a case question, first classify the assessee as business or other, then apply the place test.
For time-limit questions, write both dates and pick the earlier one.
Keep the terms apart: Board, specified income-tax authority and Assessing Officer have different roles.
Use only the section numbers you know; if unsure, state the rule in plain words.

Practice questions from CBDT and Other Authorities

Control and Jurisdiction of Income-tax Authorities in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

Control and Jurisdiction of Income-tax Authorities: frequently asked questions

What does section 238 of the Income-tax Act, 2025 provide?

It lets the Board, by notification, direct that specified income-tax authorities shall be subordinate to other specified authorities. It is the basis of the chain of command.

How is the jurisdiction of an Assessing Officer decided?

For a person carrying on business or profession, it is the area where the business is carried on, or the principal place if there are several. For any other person, it is the area of residence.

Who decides if there is a doubt on jurisdiction?

The specified income-tax authority decides. If the question involves different specified authorities who disagree, the Board or the authority it notifies decides.

Can the Board allot work by class of income?

Yes. Under section 241(4), the Board may have regard to territorial area, persons or classes of persons, incomes or classes of income, and cases or classes of cases.