What determines the jurisdiction of an Assessing Officer?

Under Section 124 of the Income-tax Act, 1961, jurisdiction generally follows the principal place of business or profession, or residence for other persons, subject to valid orders under Section 120.

When must a taxpayer challenge Assessing Officer jurisdiction?

Section 124(3) of the 1961 Act prescribes different time limits according to the notice and return situation. For a return filer, the usual limit is one month from service of the specified notice or completion of assessment, whichever is earlier.

Which provision replaces Section 124 under the Income-tax Act, 2025?

Section 242 of the Income-tax Act, 2025 covers jurisdiction of Assessing Officers for tax years governed by the new Act.

Section 124 Income Tax Act: Assessing Officer Jurisdiction and Section 242 (2025 Act)

What is the jurisdiction of an Assessing Officer?

Jurisdiction means the legally assigned authority of an Assessing Officer (AO) to deal with a taxpayer, income, area or class of cases. Section 124 of the Income-tax Act, 1961 provides territorial rules, a mechanism for resolving jurisdictional disputes, strict deadlines for objections and the scope of the AO's powers. Its operation must be read with Section 120, under which jurisdictional directions are issued.

Applicable law: The Income-tax Act, 2025 came into force on 1 April 2026. Section 242 of that Act is the corresponding jurisdiction provision. Under the transitional provisions, the 1961 Act continues to apply to tax years beginning before 1 April 2026, including relevant pending or later-initiated proceedings.

Meaning of Assessing Officer and jurisdiction

Assessing Officer (AO): Under Section 2(7A) of the 1961 Act, the term includes designated income-tax officers and specified higher-ranking officers who have been vested with AO powers under Section 120 or another applicable provision. Under the 2025 Act, see Section 2(12), read with Section 241.

Jurisdictional Assessing Officer (JAO): The officer or ward/circle assigned to a PAN or taxpayer under departmental jurisdiction orders. This is distinct from a faceless assessment unit, where statutory schemes can provide for electronic allocation of assessment work.

Section 124 of the Income-tax Act, 1961: subsection-wise explanation

Section 124(1): Business location and residence

Where an AO has territorial jurisdiction by an order or direction under Section 120(1) or 120(2), the AO ordinarily has jurisdiction over:

Business or profession: a person carrying on business or profession within the assigned area; where there are multiple places, the principal place of business or profession within that area is relevant.
Other persons: a person residing within the assigned area.

These are statutory territorial rules; specific CBDT jurisdiction orders and lawful functional allocations also need to be checked.

Section 124(2): Who decides a jurisdiction dispute?

Disputes are determined by the appropriate Principal Director General, Director General, Principal Chief Commissioner, Chief Commissioner, Principal Commissioner or Commissioner, as applicable. Where different administrative regions are involved, the concerned senior authorities may decide; if they disagree, the CBDT or a notified authority resolves the question.

Section 124(3): Time limits for challenging jurisdiction

Situation	Statutory time limit under the 1961 Act
Return filed under Section 139(1)	One month from service of a notice under Section 142(1) or 143(2), or completion of assessment, whichever occurs earlier.
No return filed	Before expiry of the time allowed under the applicable statutory notice, including Section 142(1), Section 148 or the relevant best-judgment show-cause notice, as provided in Section 124(3)(b).
Search or requisition cases	The special time rule in Section 124(3)(c) applies where its specified notice and proceeding conditions are met.

Section 124(3) also contains historical references to fringe benefit tax provisions and search assessment notices. The exact applicable wording and procedural regime depend on the assessment year and date of proceedings. Do not assume every listed notice remains relevant to current proceedings.

Section 124(4): Reference to senior authority

When a taxpayer raises a timely jurisdiction objection and the AO does not accept it, the AO must refer the issue for determination under Section 124(2) before making the assessment.

Section 124(5): Income arising within the area

Regardless of other provisions of Section 124 or jurisdiction directions under Section 120, an AO retains statutory powers over income accruing, arising or received in the territorial area assigned to that AO, subject to the exact provision and applicable law.

Section 242 of the Income-tax Act, 2025

Section 242 carries forward the framework for the jurisdiction of Assessing Officers and should be read with Section 241 (jurisdiction of income-tax authorities). Its key provisions are:

Subsection (1): Territorial jurisdiction over the principal place of business or profession, or residence, where an AO is vested with an area under Section 241.
Subsections (2) and (3): Resolution of jurisdiction questions by specified income-tax authorities, and by the Board or its notified authority if senior authorities disagree.
Subsection (4): Time-bar rules for jurisdiction objections, with updated references to the new Act's return, assessment, search and requisition provisions.
Subsection (5): Referral of a timely objection to the appropriate authority before assessment where the AO does not accept the objection.
Subsection (6): Powers concerning income accruing, arising or received within the AO's assigned area.

Under Section 242(4), the new Act refers to return filing under Section 263(1), specified notices under Sections 268 and 270, and other relevant notices. Because the prescribed deadlines can be short, verify the notice, service date and exact applicable statutory text immediately.

Read the official Income-tax Act, 2025 (PDF). For later amendments, consult the official consolidated text amended by the Finance Act, 2026.

Practical examples

Business operating in two cities

A firm maintains branches in Delhi and Mumbai, but its principal place of business is in Delhi. Under the territorial principle, the location of its principal place of business is important in determining the AO's jurisdiction, subject to valid orders allocating jurisdiction by class of taxpayer, income or case.

Taxpayer receives notice from an unfamiliar ward

If a taxpayer believes the notice was issued by an AO without jurisdiction, the taxpayer should promptly verify the applicable jurisdiction order, preserve the date of service and raise a reasoned objection within the statutory deadline. Waiting until an assessment order is passed may bar the objection under Section 124(3) or Section 242(4), as applicable.

How to check or challenge your Assessing Officer's jurisdiction

Use the official Know Your Jurisdictional Assessing Officer facility. A valid PAN and mobile number are required for the lookup.
Check the jurisdiction order, your principal business location or residence, and any transfer or specialised allocation of jurisdiction.
Identify which Act applies to the tax year and which notice was served.
Submit a written objection through the appropriate official channel before the relevant statutory deadline, with documentary evidence.
If the AO disagrees with a timely objection, request referral to the competent senior authority under the applicable provision.

A change of address may also require PAN jurisdiction migration; the department's JAO guidance explains the procedure. A jurisdiction objection is distinct from a challenge to the merits of an assessment.

Official sources and statutory references

This article is an explanatory guide. Statutory wording, amendments, CBDT directions and the relevant notice should be checked for individual cases.

Section 124: Jurisdiction of Assessing Officers