Section 124 - Jurisdiction of Assessing Officers - Income-tax Act, 1961

1 [Jurisdiction of Assessing Officers. 124. (1) Where by virtue of any direction or order issued under sub-section (1) or sub-section (2) of section 120, the Assessing Officer has been vested with jurisdiction over any area, within the limits of such area, he shall have jurisdiction- ( a ) in respect of any person carrying on a business or profession, if the place at which he carries on his business or profession is situate within the area, or where his business or profession is carried on in more places than one, if the princi pal place of his business or profession is situate within the area, and ( b ) in respect of any other person residing within the area. (2) Where a question arises under this section as to whether an Assessing Officer has jurisdiction to assess any person, the question shall be determined by the 5 [Principal Director General or] Director General or the 5 [Principal Chief Commissioner or] Chief Commissioner or the 5 [Principal Commissioner or] Commissioner; or where the question is one relating to areas within the jurisdiction of different 5 [Principal Director General or] Directors General or 5 [Principal Chief Commissioners or] Chief Commissioners or 5 [Principal Commissioners or] Commissioners, by the 5 [Principal Director General or] Directors General or 5 [Principal Chief Commissioners or] Chief Commissioners or 5 [Principal Commissioners or] Commissioners concerned or, if they are not in agreement, by the Board or by such 5 [Principal Director General or] Director General or 5 [Principal Chief Commissioner or] Chief Commissioner or 5 [Principal Commissioner or] Commissioner as the Board may, by notification in the Official Gazette, specify. (3) No person shall be entitled to call in question the jurisdic tion of an Assessing Officer- ( a ) where he has made a return 2 [ under sub-section (1) of section 115WD or ] under sub-section (1) of section 139, after the expiry of one month from the date on which he was served with a notice under sub-section (1) of section 142 or 3 [ sub-section (2) of section 115WE or ] sub-section (2) of section 143 or after the completion of the assessment, whichever is earlier; ( b ) where he has made no such return, after the expiry of the time allowed by the notice under 4 [ sub-section (2) of section 115WD or sub-section (1) of section 142 or under sub-section (1) of section 115WH or under section 148 for the making of the return or by the notice under the first proviso to section 115WF or under the first proviso to section 144 ] to show cause why the assessment should not be completed to the best of the judg ment of the Assessing Officer, whichever is earlier. 6 [(c) where an action has been taken under section 132 or section 132A, after the expiry of one month from the date on which he was served with a notice under subsection (1) of section 153A or sub-section (2) of section 153C or after the completion of the assessment, whichever is earlier. ] (4) Subject to the provisions of sub-section (3), where an asses see calls in question the jurisdiction of an Assessing Officer, then the Assessing Officer shall, if not satisfied with the correctness of the claim, refer the matter for determination under sub-section (2) before the assessment is made. (5) Notwithstanding anything contained in this section or in any direction or order issued under section 120, every Assessing Officer shall have all the powers conferred by or under this Act on an Assessing Officer in respect of the income accruing or arising or received within the area, if any, over which he has been vested with jurisdiction by virtue of the directions or orders issued under sub-section (1) or sub-section (2) of section 120.. ] --------------------------- Notes :- 1. Substituted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988. Prior to its substitution, section 124 was amended by the Finance (No. 2) Act, 1967, w.e.f. 1-4-1967 and the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-10-1975. 2. Inserted by the Finance Act, 2005, w.e.f. 1-4-2006. 3. Inserted by the Finance Act, 2005, w.e.f. 1-4-2006. 4. Substituted for sub-section (1) of section 142 or under section 148 for the making of the return or by the notice under the first proviso to section 144 by the Finance Act, 2005, w.e.f. 1-4-2006. 5. Inserted vide THE FINANCE (No. 2) ACT, 2014 w.e.f. 1st day of June, 2013 6. Inserted vide THE FINANCE ACT, 2016 w.e.f. 1st day of June, 2016