Loading...

⚠ ✕
❮ Top
☎ Help
☰
×

By creating an account you can:

Logo TaxTMI
Call Us / Help / Feedback✕

Contact Us At :

✉ E-mail: [email protected]

✆ Call / WhatsApp at: +91 99117 96707

For more information, Check Contact Us

FAQs :

To know Frequently Asked Questions, Check FAQs

Most Asked Video Tutorials :

For more tutorials, Check Video Tutorials

Submit Feedback/Suggestion :

Email :
Please provide your email address so we can follow up on your feedback.
Category :
Description :
Min 15 characters 0/2000
Make Most of Text Search ✕
  1. Checkout this video tutorial: How to search effectively on TaxTMI.
  2. Put words in double quotes for exact word search, eg: "income tax"
  3. Avoid noise words such as : 'and, of, the, a'
  4. Sort by Relevance to get the most relevant document.
  5. Press Enter to add multiple terms/multiple phrases, and then click on Search to Search.
  6. Text Search
  7. The system will try to fetch results that contains ALL your words.
  8. Once you add keywords, you'll see a new 'Search In' filter that makes your results even more precise.
  9. Text Search
╳
Add to...
You have not created any category. Kindly create one to bookmark this item!
✕
Create New Category
Hide
Title :
Description :
❮❮ Hide
❮ Default View
Expand ❯❯
Close ✕
🔎 Filters / Advanced Search ❯
TEXT

Press 'Enter' to add multiple search terms. Rules for Better Search

Search In
Main Text + AI Text ❯
  • Main Text
  • Main Text + AI Text
  • AI Text
Law:
---- All Laws---- ❯
  • ---- All Laws----
  • Benami Property
  • Bill
  • Central Excise
  • Companies Law
  • Customs
  • DGFT
  • FEMA
  • GST
  • GST - States
  • IBC
  • Income Tax
  • Indian Laws
  • Money Laundering
  • SEBI
  • SEZ
  • Service Tax
  • VAT / Sales Tax
Types:
---- All Types ---- ❯
  • ---- All Types ----
  • Act Rules
  • Case Laws
  • Circulars
  • Manuals
  • News
  • Notifications
Sort By: ?
In Sort By 'Default', exact matches for text search are shown at the top, followed by the remaining results in their regular order.
Relevance Default Date
    Case Laws Income Tax
    Procedural Technicalities vs. Substantive Justice in Tax Administration: A High Court Perspective
    Case Laws Income Tax
    Revision u/s 263 and denial of deduction u/s 80IA: A Critical Analysis of the Delhi High Court's Jud...
    Case Laws Income Tax
    Condonation of Delay and Jurisdictional Challenges: A Case Analysis of ITAT Kolkata's Decision
    Case Laws Income Tax
    Legal Analysis: Scrutiny of Share Capital and Premium Under Section 68 of the Income Tax Act
    Case Laws Income Tax
    Judicial Scrutiny of Retrospective Cancellation of Charitable Trust Registration: A Case Analysis of...
    Case Laws Income Tax
    Office and Prosecution under Income Tax Act: Jurisdiction of Trial Court - Decision in a High Profil...
    Case Laws Income Tax
    Taxation of Unexplained Income at Higher Rate of tax u/s 115BBE : A Comprehensive Analysis of the IT...
    Case Laws Income Tax
    Analysis of ITAT Mumbai Judgment - Transfer Pricing Adjustment Dispute: Period of limitation u/s 144...
    Case Laws Income Tax
    In-Depth Analysis of Key Issues in the ITAT Chennai Judgement
    Case Laws Income Tax
    Doctrine of Merger in Income Tax Assessment: An Analysis of ITAT Chennai's Recent Judgment
    Case Laws Income Tax
    Delay in refund processing, the petitioner's entitlement to interest, and the court's decision to gr...
    Case Laws Income Tax
    Rejection of revision application u/s 264 in favor of assessee: A beneficial provision of Income Tax...
    Case Laws Income Tax
    An Analysis of ITAT Decision on International Taxation, Capital Gains, and DTAA
    Case Laws Income Tax
    Taxability of CSR fund: Treatment of certain funds received by an entity, particularly focusing on w...
    Case Laws Income Tax
    Legal Analysis of ESOP Deduction and allowability in the Revised Return of income: An ITAT decision.
    Case Laws Income Tax
    Distinction between Capital Gains and Business Income: Comprehensive Analysis of a Income Tax Case
    Case Laws Income Tax
    A Multifaceted Legal Analysis on Transfer Pricing and Tonnage Tax Scheme, Bareboat Charter, Interest...
    Case Laws Income Tax
    Assessment of Eligibility for Tax Deductions Under Scrutiny: Tribunal Upholds PCIT's Revisionary Pow...
    Case Laws Income Tax
    Taxation of Employee Benefits: TDS on value of accommodation provided to the employees at the rate o...
    Case Laws Income Tax
    The Intricacies of Unexplained Investment and Legal Recourse: A Comprehensive Analysis of a recent C...
❮
❯
❯❯
Maximize Maximize Maximize
0 / 200
Expand Note
Add to Folder

No Folders have been created

+

Are you sure you want to delete "My most important" ?

NOTE:

Notes
Showing Results for :
Reset Filters
Results Found:
Show All Summaries Hide All Summaries
Case Laws Income Tax
Show AI Summary
Condonation of delay in tax compliance: liberal interpretation protects bona fide taxpayers from technical disqualification.
The court analysed whether delay in filing Form 10 could be condoned, considering the petitioner's unawareness of post 2016 amendments, CBDT circulars and precedent, and applying principles that each case be judged on its facts; it stressed that failure to claim accumulation does not by itself show absence of intent to comply and urged a liberal approach to mitigate genuine hardship and prevent procedural technicalities from defeating substantive justice.
Case Laws Income Tax
Show AI Summary
Section 263 limited to substantial legal errors; mere differences of opinion don't justify revisional tax action.
Scope of Section 263 is confined to instances where an assessment order is erroneous and prejudicial to revenue in a substantial way, not mere differences of opinion. Migration of licences from IP VPN to NLD ILD does not, by itself, create a new undertaking defeating entitlement to deduction under Section 80IA(4)(ii), particularly where identical deductions were previously allowed; administrative migration requires clear proof of substantive change before re characterising eligibility.
Case Laws Income Tax
Show AI Summary
Delay condonation based on sufficient cause upheld where illness, relocation and pandemic disruption justified late filing and jurisdictional challenge.
The tribunal applied a purposive construction of sufficient cause to condone substantial delay where cumulative factors-serious illness, change of residence and pandemic disruption-made filing untimely. It also found the assessment infirm for want of territorial and pecuniary jurisdiction because the taxpayer had established residence and filing history in a different territorial unit and administrative guidance allocated jurisdiction accordingly, underscoring that proper vesting of authority is a condition precedent to valid assessment.
Case Laws Income Tax
Show AI Summary
Unexplained cash credits under Section 68 require taxpayers to prove investor identity and genuineness; authorities must rebut with evidence.
Applicability of Section 68 requires the assessee to establish investor identity, creditworthiness and transaction genuineness-via PAN, tax returns, audited accounts and bank statements-and once this initial burden is satisfied, the burden shifts to the revenue to rebut with concrete evidence; mere suspicion or inability to trace an ultimate source does not alone justify additions if investments are reasonable relative to investors' net worth and effected through banking channels.
Case Laws Income Tax
Show AI Summary
Retrospective cancellation of charitable trust registration invalidated due to lack of competent jurisdiction and procedural non compliance.
The Tribunal invalidated the cancellation of a charitable trust's registration because the regional authority lacked competence to cancel under the statutory scheme and the transfer used to reassign the matter was improper; it further held that applying the newer cancellation provision retrospectively to deprive the trust of its recognized status was not legally tenable, emphasizing required notice, hearing and adherence to principled statutory interpretation.
Case Laws Income Tax
Show AI Summary
Jurisdiction in multi locational offences governs venue determination; magistrate discretion and supervisory thresholds shape tax prosecution forums under criminal procedure.
The judgment analyses Cr.P.C. place of offence principles in multi locational tax prosecutions, assessing whether procedural acts like recording statements under the Income Tax Act determine venue. It evaluates the magistrate's discretion in taking cognizance where alleged offences span jurisdictions and outlines the threshold for superior court supervisory intervention, emphasising that extraordinary petitions require demonstration of abuse of process or exceptional circumstances before altering magistrate venue determinations.
Case Laws Income Tax
Show AI Summary
Taxation of unexplained income: higher-rate treatment applies, and deductions including partner salary are disallowed.
The tribunal held that excess unrecorded stock and cash found on survey were assessable as unexplained investment and unexplained money, and that the special higher-rate taxation provision applies to such income, taxing it at a higher fixed rate and disallowing any deduction; consequently the claimed partner's salary relating to the unexplained investment was disallowed.
Case Laws Income Tax
Show AI Summary
Limitation under section 144C: assessment issued beyond statutory period, leaving transfer pricing adjustment unresolved on procedural grounds.
The tribunal focused on the statutory time limit under Section 144C(13) for passing assessment orders after DRP directions, treated the order as barred by limitation and therefore did not adjudicate substantive transfer pricing challenges raised under Section 92CA. Consequently, technical disputes over comparability, exclusion/inclusion of comparables, and the profit level indicator computation were left unexamined.
Case Laws Income Tax
Show AI Summary
Capitalization of interest: tribunal scrutinised whether interest and forex on capital projects form capital cost or permit revenue deduction.
The tribunal analyzed four core taxation questions: whether interest and foreign exchange fluctuations written off from Capital Work in Progress are capital or revenue in nature and their nexus to business operations; whether write off of a DG set component should be treated within the block of assets for depreciation or as a revenue repair; the applicability of Section 36(1)(iii) to proportionate interest on interest free advances to related concerns and the presumption from mixed funds; and the evidentiary requirements to establish that inter corporate deposits were funded from own funds rather than borrowed monies for interest deduction purposes.
Case Laws Income Tax
Show AI Summary
Doctrine of merger limits revisional jurisdiction under appeals, preventing collateral review of identical legal issues.
The Doctrine of Merger operates to treat legal issues from an assessment as merged into appeal proceedings before the Commissioner of Income Tax (Appeals), thereby constraining subsequent revisional jurisdiction over those same issues; applied where initial assessment, reassessment notices and search-related assessment steps overlap, and supported by judicial precedent limiting collateral revision.
Case Laws Income Tax
Show AI Summary
Interest on delayed tax refunds where delay is not attributable to the taxpayer under Section 244A.
Entitlement to interest under Section 244A arises when refund payment is delayed for reasons not attributable to the assessee. The petitioner, a foreign company, faced delays caused by technical issues and incorrect guidance regarding banking details; the court treated the delay as the respondents' responsibility and applied Section 244A to award interest for the period of delay, directing payment according to the statutory rate.
Case Laws Income Tax
Show AI Summary
Revision application under Section 264: remand for fresh merits review when alternative remedies were improperly relied upon.
Whether a revision under Section 264 may be denied solely because alternative remedies existed and whether appeal provisions applied to DDT-related treaty claims; the court found that rejecting revision on the mere availability of other remedies was untenable and that the appealed provision was inapplicable, directing fresh merits consideration of treaty relief and related tax computation by the Principal Commissioner.
Case Laws Income Tax
Show AI Summary
DTAA interpretation clarifies capital gains tax treatment for cross-border share sales under residency and grandfathering conditions.
Taxation of capital gains from a Mauritius-based entity's sale of Indian company shares is analysed against the India-Mauritius Double Taxation Avoidance Agreement, focusing on DTAA allocation of taxing rights, timing of acquisition and transfer, and applicability of grandfathering provisions. The Tribunal assessed tax residency and treaty entitlement by examining corporate structure and commercial substance, applying the substance over form principle to determine whether treaty benefits were appropriate.
Case Laws Income Tax
Show AI Summary
Fiduciary funds not treated as taxable income when entity acts as facilitator; earmarked project funds excluded from income.
The Tribunal examined whether earmarked receipts should be included in taxable income or treated on the balance sheet, focusing on jurisdictional validity of scrutiny notices, whether amounts were routed through the income and expenditure account or retained as earmarked funds, and whether receipts held in a fiduciary capacity for disaster relief were excluded from the entity's income because the entity acted only as facilitator without beneficial ownership.
Case Laws Income Tax
Show AI Summary
ESOP deduction in revised returns - tribunal permits claim within revision window, stressing valuation, timing and documentary consistency.
Deductibility of ESOP-related costs in a revised return hinges on compliance with the statutory time limit for revision and on accounting and evidentiary consistency: correct year of recognition, reliable grant date valuation (e.g., Black Scholes), concordant employee records, and disclosure in audited accounts. The tribunal found the claim allowable within the revision window but emphasised documentary proof, valuation method and timing of liability as central to acceptability.
Case Laws Income Tax
Show AI Summary
Classification of property income: conversion into business income denies capital-gains relief and alters deduction eligibility.
Where land initially held as a capital asset is developed and sold through partnership activity with a profit motive, the asset can be characterized as having undergone conversion into stock-in-trade and treated as business income; that characterization determines tax consequences by excluding capital-gains-specific deductions and reinvestment reliefs, and depends on the taxpayer's intention and the transactional pattern.
Case Laws Income Tax
Show AI Summary
Transfer pricing applicability to tonnage tax scheme narrowed; tonnage-covered operations exempted from transfer pricing obligations.
Transfer pricing provisions were held inapplicable to operations covered by the Tonnage Tax Scheme, and transfer pricing adjustments based on differential interest for a bareboat charter cum demise lease were rejected in light of prior consistent rulings. The Tribunal treated the relevant interest income and expenditure as business income, examined whether a negative lien equated to a fee-bearing corporate guarantee, and reviewed allocation principles for common interest and hire-charge adjustments between tonnage and non-tonnage activities.
Case Laws Income Tax
Show AI Summary
Revisionary power under section 263 upholds reassessment where deduction eligibility under section 80IB(11A) is lacking.
The PCIT found the assessee ineligible for the deduction under section 80IB because operations commenced outside the period in section 80IB(11A); the original assessment accepted the deduction without examining this eligibility. The PCIT issued a show-cause and, treating the original order as erroneous and prejudicial to revenue, exercised revisionary power under section 263 to quash the order and direct reassessment, the Tribunal upholding that revision was appropriate where the error was beyond mere rectification remedies.
Case Laws Income Tax
Show AI Summary
Perquisite valuation: absence of employer concession leads to no TDS on rent-free employee accommodation under valuation rules.
The tribunal concluded that perquisite taxation on rent-free accommodation requires a demonstrable concession by the employer; in the absence of such concession the perquisite value is nil. Although the institution is not a Central Government entity, the Revenue's invocation of Rule 3 and fixed percentage valuation was premature. The appellate deletion of the withholding demand was affirmed on the ground that no concession existed and therefore no taxable perquisite arose.
Case Laws Income Tax
Show AI Summary
Unexplained investments deemed taxable where cancellation deeds lack civil adjudication and source credibility is unproven.
The tribunal sustained income tax additions under the unexplained investment provision, holding that the assessee failed to prove the creditworthiness and reality of alleged fund sources for a land purchase revealed in a survey, and that registered cancellation deeds without a civil court decree do not legally negate the original transaction for tax purposes.

TMI Notes

Back

All TMI Notes

Showing Results for :
Reset Filters
No Records Found

TMI Notes

Back

All TMI Notes

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)

6 September, 2025

Contents
Acts
Rules & Regulations
Summary
Note

Note

-

Bookmark

Print

Print

Section 242 Jurisdiction of Assessing Officers.

Income-tax Act, 2025

At a Glance

The materials are two versions of Clause/Section 242 dealing with the jurisdiction of Assessing Officers: the "Income Tax Bill, 2025 - Old Version" (Document 2) and the enacted "Income-tax Act, 2025" provision (Document 1). The documents largely mirror each other but contain a few drafting and substantive differences affecting (i) the references to other provisions that trigger 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) mechanisms for resolving jurisdictional disputes between Assessing Officers and specified income-tax authorities; (c) time-bars and procedural limits for assessees to call into question an Assessing Officer's jurisdiction; and (d) the preservatory clause on the powers of the Assessing Officer in respect of income within the vested area. Definitions and broader legislative context beyond explicit cross-references to sections 241, 263, 268, 270, 271, 247, 248, 294 and (in the Bill) 153C(2) are Not stated in the document.

Statutory Provision Mode

Text & Scope

Coverage and ingredients in the enacted provision (Document 1):

  • Sub-section (1): Where an Assessing Officer is vested with jurisdiction over an area by virtue of directions/orders u/s 241(1)/(2)/(3), he shall have jurisdiction within that area: (a) over persons carrying on business or profession if their place of business/profession (or principal place, where multiple places) is situated within the area; and (b) over any other person residing within the area.
  • Sub-section (2): Questions as to whether an Assessing Officer has jurisdiction to assess any person shall be determined by the specified income-tax authority.
  • Sub-section (3): Where the question relates to areas within jurisdictions of different specified income-tax authorities, determination shall be either (a) by the specified income-tax authorities concerned; or (b) by the Board or such specified income-tax authority as the Board may, by notification, specify 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 (4), if an assessee challenges jurisdiction and the AO is not satisfied with the claim, the AO shall refer the matter for determination under subsections (2) or (3) before making the assessment.
  • Sub-section (6): Regardless of anything in this section or in directions/orders u/s 241, every Assessing Officer shall have all powers conferred on an Assessing Officer under this Act in respect of income accruing/arising/received within the area over which he has been vested with jurisdiction by virtue of directions/orders u/s 241(1)/(2)/(3).

Interpretation

The text seeks to define territorial/person-based jurisdiction of Assessing Officers where jurisdiction is conferred by administrative directions/orders u/s 241. It aligns jurisdiction with the location of business/principal place of business for businesses and with residence for other persons. The mechanism for resolving disputes prioritises intra-departmental resolution by specified income-tax authorities and, if disagreement arises, escalation to the Board or a Board-designated authority. The procedural bars in sub-section (4) function as transactional limitation points to prevent late jurisdictional objections. Sub-section (6) is a preservatory clause ensuring AOs retain all powers under the Act with respect to income within their vested area irrespective of other clauses.

Exceptions/Provisos

No explicit provisos beyond the time-based bars in sub-section (4). The provision does not state exceptions for specific classes 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.)
  • Example 3: Two specified income-tax authorities dispute which has jurisdiction over a taxpayer whose business spans both their areas; under sub-section (3), they must determine the question between them, or-if they disagree-the Board or a Board-specified authority will decide.

Interplay

The provision cross-references multiple other provisions (sections 241, 247, 248, 263, 268, 270, 271, 280, 294). The Bill version additionally referenced section 153C(2) of the Income-tax Act, 1961 in the time-bar sub-clause (4)(c); the enacted version omits that reference. The enacted provision also omits an explicit mention of directions/orders u/s 241(4) in sub-section (6) that appeared in the Bill version. Any interaction with rules, notifications or circulars beyond the Board's power to notify a specified income-tax authority is Not stated in the document.

Practical Implications

  • Compliance and risk areas: Taxpayers must be vigilant about the procedural timelines in sub-section (4) when seeking to challenge an AO's territorial/person-based jurisdiction. Failure to raise jurisdictional objections within these specified windows will likely bar such challenges under the provision.
  • Departmental administration: The provision formalises an intra-departmental mechanism for resolving jurisdictional disputes, reducing immediate recourse to courts and concentrating determinations within specified income-tax authorities or the Board.
  • Scope of AO powers: Sub-section (6) conserves 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 jurisdiction rules for Assessing Officers when jurisdiction is vested by directions/orders u/s 241(1)-(3).
  • Disputes over jurisdiction are to be determined within the taxation administration-first by specified income-tax authorities and, if disagreement persists, by the Board or a Board-designated authority.
  • There are strict temporal bars on an assessee's ability to question AO jurisdiction tied to notices under other specified sections; taxpayers must act within those windows.
  • Sub-section (6) preserves Assessing Officer powers to exercise all powers under the Act in relation to income connected to the vested area.
  • Material differences between the Bill and enacted text: (i) removal in the enacted text of reference to section 153C(2) in the time-bar clause; and (ii) omission of an explicit reference to section 241(4) in the preservatory clause-both could affect scope and application.
  • Where the Bill text contains drafting errors/duplication (e.g., "concerned specified income-tax authority concerned"), the enacted text appears to have corrected or rephrased those passages.
  • Several contextual and operational details (definitions, commencement date, precise effect vis-`a-vis section 241(4), and procedural mechanisms for determinations) are Not stated in the document.

Differences Identified and Practical Impact (Concise)

Topic Bill (Old Version) Act (Enacted Section 242)
Reference in sub-section (3)(a) Typographical duplication: "by the concerned specified income-tax authority concerned." Cleaned up to "the specified income-tax authorities concerned." (clarity improved)
Escalation in sub-section (3)(b) "if they are not in agreement, by the Board or by such specified income-tax authority as the Board may, by notification, specify." Reordered: "by the Board or by such specified income-tax authority as the Board may, by notification, specify in this behalf, if they are not in agreement." (substantive alignment; minor drafting change)
Time-bar in sub-section (4)(c) Refers to notice u/s 153C(2) of the Income-tax Act, 1961 or section 294(1)(a). Omits reference to section 153C(2); refers only to section 294(1)(a).
Preservatory clause (sub-section (6)) Includes directions/orders u/s 241(1)/(2)/(3) or (4). Refers only to directions/orders u/s 241(1)/(2)/(3) (omits explicit mention of section 241(4)).

Practical impact: omission of cross-references present in the Bill may narrow the textual triggers that give rise to AO jurisdiction and the time-bars for challenging that jurisdiction; the full practical import depends on the contents and role of the omitted cross-referenced provisions (sections 153C(2) and 241(4)), which are Not stated in the document.


Full Text:

Section 242 Jurisdiction of Assessing Officers.

Topics

Acts Income Tax