Section 241 of the Income Tax Act 2025: Who Has Jurisdiction to Exercise Income Tax Powers?
Section 241 explains how jurisdiction and administrative functions are assigned to income-tax authorities, including directions of the Central Board of Direct Taxes (CBDT), delegation to senior officers and concurrent jurisdiction of Assessing Officers.
What is Section 241 of the Income Tax Act 2025?
Section 241 establishes the framework for allocating statutory powers and functions among income-tax authorities. The Board can issue directions about which authorities may exercise powers, how work may be allocated and when more than one Assessing Officer may exercise jurisdiction concurrently. These directions may be based on geography, taxpayers, income or cases.
Jurisdiction is therefore determined by the Act read with applicable Board directions, notifications and authorised written orders. An officer's rank or location alone does not conclusively establish jurisdiction in every case.
Section 241 explained subsection by subsection
Section 241(1): CBDT directions governing powers
Income-tax authorities exercise statutory powers and perform functions in accordance with directions issued by the Board. These directions determine the allocation of work within the statutory framework.
Section 241(2): Higher-ranking authorities
When the Board so directs, a higher-ranking income-tax authority may exercise the powers and functions of a lower-ranking authority. Such direction is treated as one issued under subsection (1).
Section 241(3): Written orders by authorised authorities
The Board may authorise another income-tax authority to issue written orders allocating powers and functions among authorities subordinate to it.
Section 241(4): Criteria for allocation
The Board or authorised authority may consider one or more of four statutory criteria:
- Territorial area;
- Persons or classes of persons;
- Incomes or classes of income; and
- Cases or classes of cases.
Section 241(5): Assignment of functions to specified officers
Subject to stated conditions, restrictions or limitations, the Board may authorise a Principal Director General, Director General, Principal Director or Director to perform assigned functions of another income-tax authority. It may also empower a specified authority to issue written orders assigning Assessing Officer functions for identified areas, persons, incomes or cases to an Additional Commissioner, Additional Director, Joint Commissioner or Joint Director.
Section 241(6): Consequences of an order under subsection (5)(b)
Where an order under subsection (5)(b) applies, statutory references to the Assessing Officer are treated as references to the designated Additional Commissioner, Additional Director, Joint Commissioner or Joint Director. A statutory requirement for approval or sanction of the Joint Commissioner does not apply in that situation.
Section 241(7): Concurrent jurisdiction
Directions or orders may require two or more Assessing Officers to exercise powers and functions concurrently for specified areas, persons, incomes or cases. If the officers are of different classes, the lower-ranking authority acts as directed by the higher authority. The provision also adjusts references to the Assessing Officer and certain approval requirements in such cases.
Section 241(8): Board notifications for returns and other acts
Despite directions or orders under Section 241 or Section 242, the Board may issue a notification governing the furnishing of returns of income or other acts required under the Act or its rules by any person or class of persons.
Section 241(9): Authority specified by notification
The income-tax authority responsible for exercising powers and functions in relation to persons covered by a subsection (8) notification is the authority specified in that notification.
Relevant statutory terms and definitions
How Section 241 affects taxpayers and proceedings
Example 1 - Territorial allocation: The Board may allocate jurisdiction by territorial area, but the applicable order must be checked because allocation may also depend on the person, income or case.
Example 2 - Concurrent Assessing Officers: A case may be assigned to two officers concurrently under an appropriate direction. The rules for officers of different classes in subsection (7) then become relevant.
Example 3 - Senior officer performing Assessing Officer functions: An order made under subsection (5)(b) may empower a Joint Commissioner to perform specified Assessing Officer functions, with the legal consequences prescribed by subsection (6).
Frequently asked questions
Can a higher-ranking income-tax officer exercise a lower officer's powers?
Yes, where the Board has issued the direction contemplated by Section 241(2), or where another applicable statutory authorisation exists.
Can two Assessing Officers have jurisdiction over the same case?
Yes. Section 241(7) expressly permits concurrent exercise of powers and functions through applicable directions or orders.
What factors determine income-tax jurisdiction?
Section 241(4) lists territorial area, persons or classes of persons, incomes or classes of income, and cases or classes of cases.
Is Section 241 of the 2025 Act about withholding refunds?
No. Section 241 of the Income-tax Act, 2025 deals with jurisdiction of income-tax authorities. Older references to Section 241 of the 1961 Act concern a different provision and should not be confused with the 2025 Act.
Official statutory sources
Read the current statutory text and any applicable CBDT orders or notifications before relying on a jurisdictional conclusion.
Last reviewed: 11 November 2026. This article provides general legal information and does not replace review of the operative orders in an individual case.