Comparison of section 242 "Jurisdiction of Assessing Officers." between the Income-Tax Act, 2025 (as passed) and the Income-Tax Bill, 2025 (as originally introduced)

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....r limitation for questioning jurisdiction and (ii) the scope clause preserving Assessing Officer powers. The provision affects taxpayers and the income-tax department (Assessing Officers, specified income-tax authorities, the Board). Effective date or commencement is Not stated in the document. Background & Scope Statutory hook: Clause/Section 242 titled "Jurisdiction of Assessing Officers" within the Income Tax Bill/Act, 2025, under the heading Authorities, jurisdiction and functions. The provision addresses (a) when an Assessing Officer, vested with jurisdiction over an area by directions or orders u/s 241(1)/(2)/(3), has jurisdiction in respect of persons carrying on business/profession or other residents within that area; (b) mechanis....

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....cify in this behalf, if they are not in agreement. * Sub-section (4): Bars assessees from calling into question Assessing Officer jurisdiction after specified timelines: (a) if a return is made u/s 263(1), after one month from service of notice u/s 268(1) or 270(8) or after completion of assessment, whichever earlier; (b) where no such return, after expiry of time allowed by notice u/s 268(1) or 280(2) for making the return or by notice u/s 271(2) to show cause why assessment should not be completed to the best of AO's judgment, whichever earlier; (c) where action taken u/s 247 or 248, after one month from service of notice u/s 294(1)(a) or after completion of assessment, whichever earlier. * Sub-section (5): Subject to subsection (....

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....of assessments, types of income, or emergency/extraordinary circumstances. Not stated in the document: any express savings clause as to assessments initiated prior to enactment, transitional arrangements, or judicial review constraints beyond the departmental determination mechanism. Illustrations * Example 1: A taxpayer carries on business at three offices; the principal place of business is within the area vested with AO-X. AO-X therefore has jurisdiction to assess that taxpayer in terms of sub-section (1)(a). * Example 2: A resident individual lives within the vested area; AO-X has jurisdiction under sub-section (1)(b) irrespective of where income arises. (Factual specifics of residence definition are Not stated in the document.) ....

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....ves an AO's statutory powers over income within the vested area. However, the omission in the enacted text of a reference to section 241(4) (present in the Bill) may narrow the stated trigger for vesting in some circumstances; the practical effect depends on the content and scope of section 241(4), which is Not stated in the document. * Record-keeping/evidence: The text implies that taxpayers should retain documentary evidence of principal place of business and residence to substantiate or contest territorial assertions. Timely responses to notices under the listed sections (268, 271, 280, 294, 270) will be critical to preserve the right to challenge jurisdiction. Key Takeaways * Section 242 sets out territorial and person-based ju....