Chapter XIV - Tax Administration
Section 243
Section 243: power to transfer cases
Section 243 allows a case to be moved from one Assessing Officer to another - whether within the same authority's control or across different authorities - and sets out when the taxpayer must be given a hearing before that happens.
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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 specified income-tax authority may transfer any case from one or more Assessing Officers subordinate to him (whether with or without concurrent jurisdiction) to any other Assessing Officer or Assessing Officers (whether with or without concurrent jurisdiction) also subordinate to him.
(2) If the Assessing Officer or Assessing Officers, from whom the case is to be transferred and the Assessing Officer or Assessing Officers, to whom the case is to be transferred are not subordinate to the same specified income-tax authority, and the concerned specified income-tax authorities––
(a) are in agreement, then the specified income-tax authority from whose jurisdiction the case is to be transferred may pass the order;
(b) are not in agreement, the order transferring the case may be passed by the Board or any such specified income-tax authority as the Board may, by notification, specify in this behalf.
(3) The order of transfer under sub-section (1) or (2) may be passed by the specified income-tax authority after giving the assessee a reasonable opportunity of being heard, wherever it is possible to do so and after recording his reasons therefor.
(4) Nothing in sub-section (1) or (2) or (3) shall be deemed to require any such opportunity of being heard to be given, where the transfer is from any Assessing Officer or Assessing Officers (whether with or without concurrent jurisdiction) to any other Assessing Officer or Assessing Officers (whether with or without concurrent jurisdiction) and the offices of all such officers are situated in the same city, locality or place.
(5) The transfer of a case under sub-section (1) or (2) may be made at any stage of the proceedings, and it shall not be necessary to re-issue any notice already issued by the Assessing Officer or Assessing Officers from whom the case is transferred.
(6) For the purposes of section 241 and this section, “case”, in relation to any person whose name is specified in any order or direction issued thereunder, means all proceedings under this Act in respect of any year, which may be pending on the date of such order or direction or which may have been completed on or before such date, and includes also all proceedings under this Act which may be commenced after the date of such order or direction in respect of any year—
(7) For the purposes of sections 241, 242 and this section, “specified income-tax authority” means the Principal Director General or Director General or Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner.
Introduction
A transfer can take place at any stage and existing notices need not be issued again. The authority passing the order depends on whether both Assessing Officers report to the same specified authority and, if not, whether those authorities agree.
Before passing the order, the authority records reasons and gives the assessee a reasonable opportunity to be heard wherever possible. The Act removes that hearing requirement for transfers between offices in the same city, locality or place.
Key takeaways
Transfers can occur during proceedings
A case can be transferred at any stage, and notices already issued do not have to be re-issued solely because of the transfer.
Reasons and hearing are conditional
The authority records reasons and provides a reasonable hearing wherever possible, except that no hearing is required for a transfer among offices in the same city, locality or place.
Cross-authority disagreements are escalated
If the relevant specified authorities do not agree, the Board or its notified authority may pass the transfer order.
Transfer within and across authorities
A specified income-tax authority may transfer a case from one or more Assessing Officers subordinate to him to any other Assessing Officer(s) also subordinate to him, with or without concurrent jurisdiction.
Where the transferring and receiving Assessing Officers are not subordinate to the same specified authority, the authorities involved may pass the transfer order if they agree; if they disagree, the Board (or an authority the Board notifies) may pass the order.
Hearing requirement
A transfer order is generally passed only after giving the assessee a reasonable opportunity of being heard, and after recording reasons - wherever it is possible to do so.
No hearing is required, however, where the transfer is between Assessing Officers whose offices are situated in the same city, locality or place.
Timing and effect of transfer
A case may be transferred at any stage of the proceedings, and it is not necessary to re-issue any notice already issued by the Assessing Officer from whom the case is transferred.
Key definitions
"Case", for a person named in a transfer order, means all proceedings under the Act for any year that are pending on the date of the order, that were completed on or before that date, or that commence afterward in respect of any year.
"Specified income-tax authority" means the Principal Director General or Director General, Principal Chief Commissioner or Chief Commissioner, or Principal Commissioner or Commissioner.
Step-by-step flow for a transfer of case under Section 243
- 1
Are the Assessing Officers on both sides subordinate to the same specified income-tax authority?
"Specified income-tax authority" means a Principal Director General or Director General, Principal Chief Commissioner or Chief Commissioner, or Principal Commissioner or Commissioner (Section 243(7)).
- Yes: That authority may transfer the case under Section 243(1); skip to the hearing check (step 3).
- No: Go to the next step.
- 2
Do the specified income-tax authorities concerned agree?
- Yes: The authority from whose jurisdiction the case moves may pass the order (Section 243(2)(a)).
- No: The Board, or an authority it notifies, may pass the order (Section 243(2)(b)).
- 3
Are all the officers' offices in the same city, locality or place?
- Yes: No opportunity of being heard is required (Section 243(4)).
- No: The assessee must be given a reasonable opportunity of being heard wherever possible, and reasons must be recorded (Section 243(3)).
- 4
At what stage is the transfer made?
A transfer may be made at any stage of the proceedings. Notices already issued by the earlier officer need not be re-issued (Section 243(5)).
- 5
What does the transfer cover?
"Case" means all proceedings for any year that are pending or completed on the date of the order or direction, and also proceedings started after that date (Section 243(6)).
Practical checklist
Do
- Keep the transfer order and any hearing notice; confirm which officer has the file after transfer.
- Check the section’s exceptions before concluding that a hearing was required for the transfer.
Avoid
- Continue filing with the former officer after an effective case-transfer order without checking the new jurisdiction.
Illustrative example
Worked example: transfer within the same city and to another city
Hypothetical facts (illustration only, not a real taxpayer): A company's case is with an Assessing Officer in Ward 1 of a city. A notice for a pending year has already been issued. Two alternatives are tested: (1) a transfer to Ward 3 in the same city under the same Principal Commissioner; (2) a transfer to an officer in another city under a different Principal Commissioner, who agrees to the transfer.
Same city
Both officers are subordinate to the same Principal Commissioner, so the transfer is under Section 243(1). As both offices are in the same city, Section 243(4) means no hearing is required.
Another city
The officers are under different specified income-tax authorities who agree, so the Principal Commissioner from whose jurisdiction the case moves passes the order (Section 243(2)(a)). Wherever possible, the company must be heard and reasons recorded (Section 243(3)).
Earlier notice
In both alternatives the notice already issued need not be re-issued (Section 243(5)).
Scope
The transfer covers all the company's proceedings for any year, pending or completed, and later ones (Section 243(6)).
Outcome
- Same-city transfer: no hearing required. Transfer to another city: hearing wherever possible, with recorded reasons.
- In neither case is the earlier notice invalid only because of the transfer.
Frequently asked questions
Does a taxpayer always get a hearing before their case is transferred?
The authority gives a reasonable opportunity of being heard wherever possible and records reasons. No hearing is required for a transfer between Assessing Officers whose offices are in the same city, locality or place.
Does transferring a case mean notices already issued have to be reissued?
No - Section 243(5) says it is not necessary to re-issue any notice already issued by the Assessing Officer from whom the case is transferred.
Need help applying this provision to your situation?
Talk to our tax team if your case has been transferred to a new officerLast updated 9 October 2026