Sub-section (1) makes every income-tax authority exercise its powers and perform its functions as per such directions as the Board may issue. Sub-section (2) allows an authority higher in rank, if so directed by the Board, to exercise the powers and perform the functions of an authority lower in rank, and deems such a direction to be issued under sub-section (1). Sub-section (3) allows the Board's directions to authorise another income-tax authority to issue written orders for the exercise of powers and performance of functions by authorities subordinate to it. Sub-section (4) lists the criteria the Board or the authorised authority may have regard to in issuing those directions or orders: territorial area; persons or classes of persons; incomes or classes of income; and cases or classes of cases.
Sub-section (5) gives the Board two further powers, exercisable by general or special order and subject to conditions, restrictions or limitations specified in it — to authorise a Principal Director General, Director General, Principal Director or Director to perform the functions of any other income-tax authority assigned to him; and to empower a specified income-tax authority to order in writing that the powers and functions of the Assessing Officer for a specified area, persons or classes of persons, incomes or classes of income, or cases or classes of cases be exercised by an Additional Commissioner, Additional Director, Joint Commissioner or Joint Director. Sub-section (6) then makes references anywhere in the Act or the rules to the Assessing Officer read as references to that officer, and disapplies any provision requiring the approval or sanction of the Joint Commissioner.
Sub-section (7) allows the directions and orders to require two or more Assessing Officers, whether or not of the same class, to exercise and perform their powers and functions concurrently over an area, persons, incomes or cases. Where they are of different classes, the lower in rank acts as the higher among them directs, references to the Assessing Officer are read as references to that higher authority, and any provision requiring that authority's approval or sanction does not apply.
Sub-sections (8) and (9) stand above the rest: irrespective of any direction or order under this section or in section 242, the Board may by notification issue directions for the furnishing of the return of income or the doing of any other act or thing under the Act or rules by any person or class of persons, and the authority exercising powers in relation to those persons is the authority specified in that notification.
Why it is there
A statute cannot say which officer handles which taxpayer. This section is the source of the Board's power to distribute the work — by area, by class of person, by class of income, by class of case — to move functions up or down the hierarchy, and to put two officers on the same case at once. Sub-sections (6) and (7) then keep the rest of the Act coherent once that has been done, by redirecting every reference to "the Assessing Officer" to whoever is actually exercising those powers.
Who it applies to
Every income-tax authority exercising powers or performing functions under the Act
The Board, issuing directions, general or special orders and notifications
A Principal Director General, Director General, Principal Director or Director assigned another authority's functions
An Additional Commissioner, Additional Director, Joint Commissioner or Joint Director exercising the powers of the Assessing Officer
Two or more Assessing Officers given concurrent charge of the same area, persons, incomes or cases
An assessee whose case is assigned, reassigned or held concurrently under a direction or order made here
What this means in practice
The two sub-sections that change outcomes are (6) and (7). Where an order under sub-section (5)(b) puts the Assessing Officer's powers in the hands of an Additional or Joint Commissioner or Director, the whole Act is read as though that officer were the Assessing Officer — and, critically, any provision requiring the Joint Commissioner's approval or sanction ceases to apply, because the officer acting already holds that rank. Sub-section (7) does the same where two or more Assessing Officers hold concurrent charge: the junior acts as the senior among them directs, references to the Assessing Officer become references to the senior, and that authority's own approval is not separately required. Sub-section (8) sits above all of it — a Board notification about furnishing returns or doing any act under the Act operates irrespective of any direction or order made under this section or under section 242. And sub-section (2) is not a free-standing power in a senior officer; it works only "if so directed by the Board".
An example
Illustrative only, and invented for this page. The figures are chosen to show the rule biting, not taken from any real matter.
The Board empowers a specified income-tax authority under sub-section (5)(b), which orders in writing that the Assessing Officer's powers for a class of cases be exercised by a Joint Commissioner. For those cases, every reference in the Act to the Assessing Officer is read as a reference to that Joint Commissioner under sub-section (6), and a provision elsewhere requiring the Joint Commissioner's prior approval before an action drops away, because the officer taking the action is himself at that level. If instead two Assessing Officers of different classes are given concurrent charge under sub-section (7), the junior exercises his powers as the senior directs, and the senior's approval is likewise not separately required.
Where you meet this section
You rarely see this section quoted at you; you meet its effect in the designation on your notice — an assessment order signed by an Additional or Joint Commissioner acting as your Assessing Officer, or a case held by two officers at once — and in a jurisdictional objection, where the answer is the Board's direction or order made under this section.
The words themselves
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
Section 241(6), Income-tax Act, 2025.
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
Section 241(7), Income-tax Act, 2025.
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
Section 241(8), Income-tax Act, 2025.
What people get wrong
Objecting that a Joint or Additional Commissioner cannot act as the Assessing Officer. Sub-section (5)(b) permits it and sub-section (6) makes the rest of the Act read accordingly.
Insisting on Joint Commissioner approval where such an officer is himself acting. Sub-section (6) disapplies any provision requiring that approval or sanction in such a case, and sub-section (7)(b) does the same for the higher authority in a concurrent charge.
Treating concurrent jurisdiction as an irregularity. Sub-section (7) expressly allows two or more Assessing Officers, of the same or different classes, to act concurrently.
Reading sub-section (2) as a power a senior officer holds on his own. It operates only "if so directed by the Board".
Assuming a Board notification about returns must yield to an existing jurisdiction order. Sub-section (8) makes it operate irrespective of any direction or order under this section or in section 242.
What this replaced
The correspondence is the Income Tax Department’s own, from its comparison utility for the 1961 and 2025 Acts. A renumbering is the easy half; whether the words changed is the half that decides cases.
A notification is made under a power the Act gives and, within that power, is law. These too were made under the 1961 Act and are placed here by the department’s concordance.
Notification: 72 Date of Issue: 18/9/2013 — Section 120(1) and (2) of the Income-tax Act, 1961 -income-tax Authorities - Jurisdiction of - Notified Assessing Officer for Purp 2013-09-18
Notification: 71 Date of Issue: 18/9/2013 — Section 120(1) and (2) of the Income-tax Act, 1961 -income-tax Authorities - Jurisdiction of Director General/director (Intelligen 2013-09-18
Notification: 70 Date of Issue: 18/9/2013 — Section 120(1) and (2) of the Income-tax Act, 1961 - Income-tax Authorities Jurisdiction of Commissioner of Income-tax (TDS) - Ame 2013-09-18
Notification: 25 Date of Issue: 28/3/2013 — Section 120 of the Income-tax Act, 1961 - Income-tax Authorities - Jurisdiction of - Dgit (Investigation) - Amendment in Notificat 2013-03-28
Notification: 17 Date of Issue: 26/2/2013 — Section 120 of the Income-tax Act, 1961 - Income-tax Authorities - Jurisdiction of - Specified CIT to Exercise Concurrent Powers & 2013-02-26
Notification: 16 Date of Issue: 26/2/2013 — Section 120 of the Income-tax Act, 1961 - Income-tax Authorities - Jurisdiction of - Specified Dgit (Systems) to Exercise Powers & 2013-02-26
Notification: 6 Date of Issue: 28/1/2013 — Section 120 of the Income-tax Act, 1961 - Income-tax Authorities - Jurisdiction of - Amendment in Notification No. SO 732(E), Date 2013-01-28
Notification: 5 Date of Issue: 28/1/2013 — Section 120 of the Income-tax Act, 1961 - Income-tax Authorities -Jurisdiction of - Amendment in Notification No. SO 733(E), Dated 2013-01-28
Notification No. 46/2011 — Section 120(1) and (2) of the Income-tax Act, 1961 - Income-tax Authorities - Jurisdiction of DG (Investigation)/commissioners - A 2011-08-26
Notification No. 45/2011 — Section 120(1) and (2) of the Income-tax Act, 1961 - Income-tax Authorities - Jurisdiction of Commissioners - Amendment in Notific 2011-08-26
Notification No. 43/2011 — Section 120(1) and (2) of the Income-tax Act, 1961 - Income-tax Authorities - Jurisdiction of Commissioners - Amendment in Notific 2011-08-19
Notification No. 42/2011 — Section 120 of the Income-tax Act, 1961 - Income-tax Authorities - Jurisdiction of 2011-08-19
Notification No. 41/2011 — Section 120(1) and (2) of the Income-tax Act, 1961 - Income-tax Authorities - Jurisdiction of Commissioners - Corrigendum to Notif 2011-08-19
Notification No. 92 — Section 120 (1) and (2) of the Income-tax Act, 1961 - Income-tax authorities - Jurisdiction of – Amendment in Notifications No. S. 2009-12-08
Notification No. 75 — Section 120(1) and (2) of the Income-tax Act, 1961 – Jurisdiction of Income-tax Authorities 2009-09-30
Notification No. 74 — Section 120(1) and (2) of the Income-tax Act, 1961 - Jurisdiction of Income-tax Authorities 2009-09-30
Notification No. 72 — Section 117(1) and (2) of the Income-tax Act, 1961 - Appointment of Income-tax Authorities - Notified Officer 2009-09-30
Notification No. 47 — Section 120 of the Income-tax Act, 1961 - Income-tax Authorities Jurisdiction of - Amendments in Notification No. SO 2022 (E), Dat 2009-06-01
Notification No. 25 — Section 120(1) and (2) of the Income-tax Act, 1961 - Jurisdiction of Authorities - Amendments in Notification No. S.o. 732(E), Dat 2009-03-16
Notification No. 62 — A notification under section 3 of the Income-tax Act, 1961 2008-05-07
Notification No. 49 — Chief Commissioner specified in column (2) of the Schedule below directed under section 120 2008-03-27
Notification No. 48 — A notification under section 120 of the Income-tax Act, 1961 2008-03-27
Notification No. 285 — Commissioner specified in column (2) of the Schedule below directed under section 120 2007-11-30
Notification No. 284 — A notification under section 120 of the Income-tax Act, 1961 2007-11-30
Notification No. 283 — Officer specified in column (2) of the Schedule below to be the Income-tax authority as specified in column (3) having his headqua 2007-11-30
Notification No. 272 — A notification under section 2 of the Income-tax Act, 1961 2007-11-08
Notification No. 250 — A notification under section 2 of the Income-tax Act, 1961 2007-09-28
Notification No. 233 — Amendment of the Income-tax Rules under section 120 of the Income-tax Act, 1961 2007-08-22
Notification No. 231 — Amendment of the Income-tax Rules under section 120 of the Income-tax Act, 1961 2007-08-22
Notification No. 224 — Section 120(1) and (2) of the Income-tax, 1961 - Jurisdiction of income-tax authorities 2007-08-10
Notification No. 223 — Section 120 of the Income-tax Act, 1961 - Jurisdiction of income-tax authorities - Amendments in Notification No. SO 733(E), dated 2007-08-10
Notification No. 200 — A notification under section 120 of the Income-tax Act, 1961 2007-05-31
Notification No. 199 — A notification under section 120 of the Income-tax Act, 1961 2007-05-31
Notification No. 198 — Director General of Income-tax specified in column (2) of the Schedule below directed under section 120 2007-05-31
Notification No. 026 — A notification under section 120 of the Income-tax Act, 1961 2007-02-12
Notification No. 308 — Commissioners of Income-tax specified in column (2) of the Schedule below directed under section 120 2006-10-27
Notification No. 285 — S.O. No. 1743 (E). - In exercise of the powers conferred by sub-sections (1) and (2) of section 120 of the Income-tax Act, 1961 ( 2006-10-10
Notification No. 277 — A notification under section 120 of the Income-tax Act, 1961 2006-09-26
Notification No. 274 — Chief Commissioner(s) specified in column (2) of the Schedule below directed under section 120 2006-09-26
Notification No. 262 — ln exercise of the powers conferred by sub-sections (1) and (2) of section 120 of the Income-tax Act, 1961 (43 of 1961), the Centr 2006-09-14
Notification No. 185 — A notification under section 94 of the Income-tax Act, 1961 2006-07-18
Notification No. 261 — Amendment of the Income-tax Rules under section 120 of the Income-tax Act, 1961 2005-12-15
Notification No. 210 — S.O. (E) In exercise of the powers conferred by section 120 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct 2005-10-06
Notification No. 207 — Amendments in the Notification of CBDT, Number S.o. 732(E), Dated the 3RD July, 2001 2005-09-26
Notification No. 196 — Amendment of the Income-tax Rules under section 120 of the Income-tax Act, 1961 2005-09-07
Notification No. 09 — Amendment of the Income-tax Rules under section 3 of the Income-tax Act, 1961 2005-01-20
Notification No. 03 — Amendment of the Income-tax Rules under section 120 of the Income-tax Act, 1961 2005-01-12
Notification No. 278 — Income Tax Notification No: 278 (05-Nov-04) Amendments in the Notification No 2004-11-05
Notification No. 145 — A notification under section 120 of the Income-tax Act, 1961 2004-05-13
Notification No. 126 — A notification under section 120 of the Income-tax Act, 1961 2004-03-31
Notification No. 39 — A notification under section 3 of the Income-tax Act, 1961 2004-02-04
Notification No. 06 — A notification under section 44AA of the Income-tax Act, 1961 2004-01-08
Notification No. 05 — A notification under section 120 of the Income-tax Act, 1961 2004-01-08
Notification No. 04 — A notification under section 2 of the Income-tax Act, 1961 2004-01-08
Notification No. 03 — A notification under section 120 of the Income-tax Act, 1961 2004-01-08
Notification No. 206 — Chief Commissioners of Income-tax specified in column (2) of the Schedule II shall exercise all the powers and perform all the fun 2003-08-27
Notification No. 160 — Chief Commissioners of Income-tax directed under section 120 2003-06-30
Notification No. 54 — A notification under section 2 of the Income-tax Act, 1961 2003-03-18
Notification No. 37 — Amendment of the Income-tax Rules under section 120 of the Income-tax Act, 1961 2003-02-25
Notification No. 30 — In Schedule-I, to the said notification for serial numbers 67, 74, 207, 208, 209, 210 and 211, and the entries relating thereto, t 2003-02-04
Notification No. 1062(E) — A notification under section 120 of the Income-tax Act, 1961 2000-11-28
Notification No. 1604 — In accordance with the powers conferred by sub-sections (1) and (2) of section 120 of the Income-tax Act, 1961, and all other powe 2000-06-05
Notification No. 412(E) — Amendment of the Income-tax Rules under section 120 of the Income-tax Act, 1961 2000-04-24
Notification No. 11343 — Amendment of the Income-tax Rules under section 120 of the Income-tax Act, 1961 2000-04-24
Notification No. 821 — Amendment of the Income-tax Rules under section 120 of the Income-tax Act, 1961 2000-03-31
Notification No. 11055 — A notification under section 120 of the Income-tax Act, 1961 1999-09-01
S.O. 703(E) — A notification under section 120 of the Income-tax Act, 1961 1999-09-01
Notification No. 11043 — Amendment of the Income-tax Rules under section 120 of the Income-tax Act, 1961 1999-08-20
Notification No. 11042 — Commissioner of Income-tax (Central) directed under section 120 1999-08-20
S.O. 676(E) — Amendment of the Income-tax Rules under section 120 of the Income-tax Act, 1961 1999-08-20
S.O. 675(E) — Commissioner of Income-tax (Central) directed under section 120 1999-08-20
S.O. 1546 — A notification under section 120 of the Income-tax Act, 1961 1999-04-13
Notification No. 1328 — Amendment of the Income-tax Rules under section 120 of the Income-tax Act, 1961 1999-04-09
S.O. 48(E) — Amendment of the Income-tax Rules under section 120 of the Income-tax Act, 1961 1999-02-01
S.O. 2682 — Consequent to the transfer of the charge of Commissioner of Income-tax (Appeals)-VII, Calcutta, from the region of the Chief Commi 1998-11-26
S.O. 2118 — Consequent to the transfer of the charge of Commissioner of Income-tax (Appeals)-XIII, Calcutta, from the region of the Chief Comm 1998-09-18
S.O. 2117 — :
(1) The Commissioners of Income-tax (Appeals) specified in column (2) of the Schedule hereto annexed having their headquarters 1998-09-04
S.O. 2116 — Amendment of the Income-tax Rules under section 120 of the Income-tax Act, 1961 1998-08-28
Notification No. 25E — Directors of Income-tax (Exemption) specified in column 2 of the schedule hereto annexed directed under section 120 1996-01-11
Read this before you rely on it. Every decision below was decided under the Income-tax Act, 1961. It appears here because it is tagged to a 1961 provision that the department’s own mapping carries to section 241. That is an inference we have drawn, not a holding on the new section: where the words changed in the move, the reasoning may not survive. Treat this as the place to start looking, not as authority on the 2025 Act.
B. Mohammad Iqbal v ACITHigh CourtHelps taxpayertagged s.120 The section 276CC complaint against me was filed by an Assistant Commissioner although my case was with the Income-tax Officer, and no assessment was…
Read with
Section 242
What this page does not tell you. It does not reproduce the section. Everything above was written from the section’s own text as the Income Tax Department publishes it — the text is here, and nothing here is advice on your facts. Where a figure matters, read the sub-section it comes from.
