Chapter XIV - Tax Administration
Section 241
Section 241: jurisdiction of income-tax authorities
Section 241 governs how jurisdiction is distributed among income-tax authorities - which authority exercises which powers, over which taxpayers, areas or types of income - based on directions the Board issues.
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This article is for general information. Refer to the Income-tax Act, 2025 as amended by the Finance Act, 2026 and the Taxation and Other Laws (Amendment) Act, 2026 for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
(1) The income-tax authorities shall exercise all or any of the powers and perform all or any of the functions conferred on, or assigned to, such authorities under this Act, as per such directions as the Board may issue for the exercise of the powers and performance of the functions by all or any of those authorities.
(2) Any income-tax authority, being an authority higher in rank, may, if so directed by the Board, exercise the powers and perform the functions of an income-tax authority lower in rank and any such direction issued by the Board shall be deemed to be a direction issued under sub-section (1).
(3) The directions of the Board under sub-section (1) may authorise any other income-tax authority to issue orders in writing for the exercise of the powers and performance of the functions by all or any of the other income-tax authorities who are subordinate to it.
(4) In issuing the directions or orders referred to in sub-sections (1), (2) and (3), the Board or other income-tax authority authorised by it may have regard to any one or more of the following criteria:—
(a) territorial area;
(b) persons or classes of persons;
(c) incomes or classes of income; and
(d) cases or classes of cases.
(5) Without prejudice to sub-sections (1), (2) and (3), the Board may, by general or special order, subject to such conditions, restrictions or limitations as specified therein––
(a) authorise any Principal Director General or Director General or Principal Director or Director to perform such functions of any other income-tax authority as may be assigned to him by the Board;
(b) empower the specified income-tax authority to issue orders in writing that the powers and functions conferred on, or assigned to, the Assessing Officer under this Act in respect of any specified area, or persons or classes of persons, or incomes or classes of income, or cases or classes of cases, shall be exercised or performed by an Additional Commissioner or an Additional Director or a Joint Commissioner or a Joint Director.
(6) Where any order is made under sub-section (5)(b), references in any other provision of this Act or in any rule made thereunder, to the Assessing Officer shall be deemed to be references to such Additional Commissioner or Additional Director or Joint Commissioner or Joint Director by whom the powers and functions are to be exercised or performed under such order, and any provision of this Act requiring approval or sanction of the Joint Commissioner shall not apply.
(7) The directions and orders referred to in sub-sections (1), (2) and (3) may, wherever considered necessary or appropriate for the proper management of work, require two or more Assessing Officers (whether or not of the same class) to exercise and perform, concurrently, the powers and functions in respect of any area, or persons or classes of persons, or incomes or classes of income, or cases or classes of cases, and––
(a) where such powers and functions are exercised and performed concurrently by the Assessing Officers of different classes, any authority lower in rank amongst them shall exercise the powers and perform the functions as any higher authority amongst them may direct; and
(b) references in any other provision of this Act or in any rule made thereunder to the Assessing Officer shall be deemed to be references to such higher authority and any provision of this Act requiring approval or sanction of any such authority shall not apply.
(8) Irrespective of anything contained in any direction or order issued under this section, or in section 242, the Board may, by notification, issue any direction for the purposes of furnishing of the return of income or the doing of any other act or thing under this Act or any rule made thereunder by any person or class of persons.
(9) The income-tax authority exercising and performing the powers and functions in relation to the person or class of persons referred to in sub-section (8) shall be such authority as specified in the notification issued under that sub-section.
Introduction
The Board's directions and authorised written orders allocate tax-administration work. Territorial area is only one possible criterion: persons, types of income and classes of cases can also determine which authority acts.
Key takeaways
Board directions allocate powers
Authorities exercise statutory powers and functions according to the Board's directions under Section 241.
Jurisdiction can overlap
The Board can require two or more Assessing Officers to act concurrently for an area, person, income or class of cases.
Higher authorities may act
A higher-ranked authority may exercise a lower authority's powers when directed by the Board; specified orders can also assign Assessing Officer functions to Additional or Joint Commissioners or Directors.
Notifications can govern return acts
The Board may separately notify directions for filing a return or doing another act, overriding ordinary directions for that purpose.
General framework
Income-tax authorities exercise the powers and perform the functions conferred on them under the Act as per directions the Board issues.
A higher-ranked authority may, if directed by the Board, exercise the powers and functions of a lower-ranked authority - such a direction is deemed to be a direction under sub-section (1).
The Board's directions may authorise another income-tax authority to issue written orders for exercising powers and functions among authorities subordinate to it.
Criteria for assigning jurisdiction
In issuing directions or orders, the Board or authorised authority may have regard to territorial area; persons or classes of persons; incomes or classes of income; and cases or classes of cases.
Delegated and concurrent jurisdiction
The Board may, by general or special order, authorise a Principal Director General/Director General or Principal Director/Director to perform functions of another income-tax authority assigned to him, and may empower a specified authority to direct that an Assessing Officer's powers and functions over a specified area, persons, income or cases be exercised by an Additional Commissioner/Additional Director or Joint Commissioner/Joint Director instead.
Where such an order is made, references to "Assessing Officer" elsewhere in the Act are deemed to be references to that Additional Commissioner/Director or Joint Commissioner/Director, and any requirement for Joint Commissioner approval or sanction does not apply.
Directions may also require two or more Assessing Officers to exercise powers concurrently over an area, persons, income or cases; where different classes of officers act concurrently, the lower-ranked authority follows the direction of the higher-ranked one, and references to "Assessing Officer" are deemed to mean that higher authority.
Notification-based directions
Irrespective of any direction or order under this section or Section 242, the Board may, by notification, direct how the furnishing of a return of income, or any other act, is to be done by any person or class of persons - with the authority exercising powers over such persons specified in that notification.
Step-by-step flow for working out who exercises a power under Section 241
- 1
What do the Board's directions say for this power or function?
Under Section 241(1) income-tax authorities exercise powers and perform functions as per the Board's directions. Under Section 241(3) those directions may let an authority issue written orders for its subordinates.
- 2
On what basis is the work divided?
Section 241(4) allows any one or more of: territorial area; persons or classes of persons; incomes or classes of income; cases or classes of cases.
- 3
Is a higher-rank authority acting in place of a lower one?
Section 241(2) allows this if the Board so directs; such a direction is treated as one under Section 241(1).
- 4
Has an order under Section 241(5)(b) given Assessing Officer powers to an Additional or Joint Commissioner or Director?
- Yes: Under Section 241(6), references to the Assessing Officer are read as references to that officer, and provisions requiring the Joint Commissioner's approval or sanction do not apply.
- No: Go to the next step.
- 5
Do two or more Assessing Officers act concurrently?
Under Section 241(7) the lower-rank officer acts as the higher one directs; references to the Assessing Officer are read as the higher authority; and provisions requiring that authority's approval do not apply.
- 6
Is there a notification under Section 241(8) for returns or other acts?
It applies irrespective of other directions or Section 242, and the authority named in it exercises the powers for those persons (Section 241(9)).
Practical checklist
Do
- Identify the applicable Board direction, notification or order allocating jurisdiction before responding to an officer.
- Match the taxpayer, tax year and proceeding type to the jurisdictional assignment.
Avoid
- Infer jurisdiction from an officer’s title alone without checking the relevant assignment.
Illustrative example
Worked example: a Joint Commissioner acting as Assessing Officer
Hypothetical facts (illustration only, not a real taxpayer): The Board's directions assign cases of a class of persons in a city to an Income-tax Officer. Later, under Section 241(5)(b), an order empowers a Joint Commissioner to exercise the Assessing Officer's powers for that class of persons. A trading firm in that class receives a notice from the Joint Commissioner.
Basis of division
The original allocation uses territorial area and class of persons, both allowed by Section 241(4).
Effect of the order
Under Section 241(6), wherever the Act or rules refer to the Assessing Officer for this firm, the reference is to the Joint Commissioner.
Approval provisions
Any provision that needs the Joint Commissioner's approval or sanction does not apply, because the Joint Commissioner is now the officer acting.
Check for overrides
The firm also checks whether a notification under Section 241(8) names a different authority for filing its return or other acts.
Outcome
- The Joint Commissioner validly acts as the firm's Assessing Officer under the order.
- The firm should keep copies of the directions and order that set this up, as they decide who acts.
Frequently asked questions
Can two Assessing Officers have jurisdiction over the same taxpayer at the same time?
Yes - Section 241(7) allows the Board to direct that two or more Assessing Officers exercise powers concurrently over the same area, persons, income or cases, with a hierarchy for resolving conflicting directions.
What factors can the Board use to divide jurisdiction between officers?
Territorial area, persons or classes of persons, incomes or classes of income, and cases or classes of cases.
Need help applying this provision to your situation?
Talk to our tax team about which officer has jurisdiction over your caseLast updated 9 October 2026