Sub-section (1) gives the specified income-tax authority power to transfer any case from one or more Assessing Officers subordinate to him, whether or not with concurrent jurisdiction, to any other Assessing Officer or Officers also subordinate to him.
Sub-section (2) covers a transfer between officers who are not subordinate to the same specified income-tax authority. Where the concerned authorities agree, the order may be passed by the authority from whose jurisdiction the case is transferred; where they do not agree, the order may be passed by the Board or by such specified income-tax authority as the Board may notify.
Sub-section (3) requires the order of transfer under sub-section (1) or (2) to be passed after giving the assessee a reasonable opportunity of being heard, wherever it is possible to do so, and after recording reasons. Sub-section (4) removes that requirement where the transfer is between Assessing Officers whose offices are all situated in the same city, locality or place.
Sub-section (5) allows a transfer at any stage of the proceedings and provides that it is not necessary to re-issue any notice already issued by the transferring Assessing Officer. Sub-section (6) defines "case", for sections 241 and 243, as all proceedings under the Act in respect of any year pending on the date of the order or direction or completed on or before that date, and also all proceedings under the Act commenced after that date in respect of any year. Sub-section (7) defines "specified income-tax authority" for sections 241, 242 and 243 as the Principal Director General, Director General, Principal Chief Commissioner, Chief Commissioner, Principal Commissioner or Commissioner.
Why it is there
Jurisdiction over an assessee is administrative, and a case sometimes has to move — to the officer holding a group's other cases, to a search or central charge, or simply on a redistribution of work. The section allows that without restarting the proceedings, and the hearing and reasons requirement in sub-section (3) is the check that stops it being used to move an assessee for no stated purpose.
Who it applies to
An assessee whose case is transferred from one Assessing Officer to another
The specified income-tax authority passing the order of transfer
The Board, where the concerned authorities are not in agreement
The transferring and receiving Assessing Officers
What this means in practice
Two features decide most objections. The opportunity of being heard and the recording of reasons under sub-section (3) are qualified by "wherever it is possible to do so" — and are removed altogether by sub-section (4) where the offices of all the officers involved are in the same city, locality or place, so an intra-city transfer needs no hearing. The definition of "case" in sub-section (6) is wide in time in both directions: a transfer carries away not only pending proceedings but also proceedings already completed on or before the date of the order and any proceedings commenced afterwards for any year, so it is not confined to the year under assessment. Under sub-section (5) the transfer can happen mid-proceeding and nothing already issued has to be re-issued, so a notice served by the transferring officer remains good in the hands of the transferee.
An example
Illustrative only, and invented for this page. The figures are chosen to show the rule biting, not taken from any real matter.
A Principal Commissioner transfers an individual's case from an Assessing Officer in one city to an Assessing Officer in another city, both subordinate to him. Because the offices are not in the same city, sub-section (4) does not apply, so under sub-section (3) the assessee must be given a reasonable opportunity of being heard wherever possible and the reasons must be recorded. Once the order is passed, sub-section (5) means the notice already issued by the first officer need not be re-issued, and under sub-section (6) the transfer carries the assessee's completed and future proceedings for any year as well as the pending one.
Where you meet this section
You meet it as an order of transfer served on you, usually before or during an assessment, naming the new Assessing Officer — and you may first meet it in a show cause letter proposing the transfer and inviting objections under sub-section (3).
The words themselves
after giving the assessee a reasonable opportunity of being heard, wherever it is possible to do so and after recording his reasons therefor
Section 243(3), Income-tax Act, 2025.
the offices of all such officers are situated in the same city, locality or place
Section 243(4), Income-tax Act, 2025.
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
Section 243(5), Income-tax Act, 2025.
What people get wrong
Insisting on a hearing for an intra-city transfer. Sub-section (4) removes the requirement where the offices of all the officers concerned are in the same city, locality or place.
Arguing that notices must be re-issued by the new officer. Sub-section (5) says re-issue is not necessary.
Reading "case" as the year under assessment. Sub-section (6) includes proceedings pending, proceedings completed on or before the date of the order, and proceedings commenced afterwards, in respect of any year.
Objecting that a transfer cannot be made once assessment has begun. Sub-section (5) allows it at any stage of the proceedings.
Assuming any senior officer can pass the order. Sub-section (7) confines "specified income-tax authority" to the Principal Director General, Director General, Principal Chief Commissioner, Chief Commissioner, Principal Commissioner or Commissioner, and where they are not in agreement sub-section (2)(b) puts the order with the Board or its notified authority.
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 243. 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…
FCS Manufacturing (India) Pvt Ltd v DDITHigh CourtCuts both waystagged s.127 Your bank accounts are provisionally attached and the business cannot operate. Is there a way out short of paying?
Read with
Section 241
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.