Section 242
Section 242: jurisdiction of Assessing Officers
Section 242 determines, in practical terms, which Assessing Officer has jurisdiction over a particular taxpayer - based on where the taxpayer's business is carried on or where they reside - and sets out the limited window within which a taxpayer can dispute that jurisdiction.
This explanation is AI-assisted and pending review by our CA/CS team. It is general information, not professional advice - always cross-check against the bare law text above or talk to our tax team for guidance specific to your situation.
How jurisdiction is determined
Where an Assessing Officer has been vested with jurisdiction over an area under a direction or order issued under Section 241(1), (2) or (3), he has jurisdiction within that area over: a person carrying on business or profession, if the place of business/profession (or its principal place, if more than one) is within the area; and any other person residing within the area.
Resolving jurisdiction disputes
If a question arises about whether an Assessing Officer has jurisdiction to assess a person, it is determined by the specified income-tax authority. Where the question involves areas under the jurisdiction of different specified authorities, it is determined by those authorities jointly, or by the Board (or an authority the Board notifies) if they disagree.
Time limits for challenging jurisdiction
A taxpayer cannot call an Assessing Officer's jurisdiction into question:
- Where a return has been filed under Section 263(1) - after one month from being served a notice under Section 268(1) or 270(8), or after assessment is completed, whichever is earlier
- Where no return has been filed - after the time allowed by the notice under Section 268(1) or 280(2) for filing the return, or by the notice under Section 271(2) to show cause against a best-judgment assessment, whichever is earlier
- Where action has been taken under Section 247 or 248 (search/survey-related provisions) - after one month from being served a notice under Section 294(1)(a), or after assessment is completed, whichever is earlier
What happens if jurisdiction is challenged in time
If a taxpayer questions jurisdiction within the permitted time and the Assessing Officer is not satisfied the challenge is correct, he must refer the matter for determination as above before completing the assessment.
Irrespective of anything else in this section or in directions under Section 241, every Assessing Officer has all the powers conferred on an Assessing Officer under the Act in respect of income accruing, arising or received within the area over which he has been vested with jurisdiction.
Frequently asked questions
How long does a taxpayer have to challenge an Assessing Officer's jurisdiction after filing a return?
One month from being served a notice under Section 268(1) or 270(8), or until the assessment is completed - whichever is earlier.
What decides which Assessing Officer has jurisdiction over an individual?
For someone carrying on business or profession, it is the location (or principal location) of that business or profession; for anyone else, it is the area where they reside.
Related sections
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Talk to our tax team about challenging or confirming AO jurisdictionLast updated 9 September 2026