Section 120 to 124 of Income Tax Act 1961: Jurisdiction of Income-tax Authorities and Assessing Officers

Section 120 - Jurisdiction of Income-tax Authorities

Section 120 provides that income-tax authorities shall exercise powers and perform functions under the Income Tax Act according to directions issued by the Board. The Board may issue directions regarding exercise of powers by different authorities.

Jurisdiction may be determined considering factors such as territorial area, persons or classes of persons, income or classes of income, and cases or classes of cases.

Section 121 - Income-tax Authorities

Section 121 deals with the relevant provisions relating to income-tax authorities as provided under the Income Tax Act.

Section 122 - Control and Distribution of Functions

Section 122 provides for allocation and distribution of functions among income-tax authorities in accordance with statutory provisions.

Section 123 - Appointment of Income-tax Authorities

Section 123 relates to appointment and functioning of income-tax authorities under the Act.

Section 124 - Jurisdiction of Assessing Officers

Section 124 provides that where an Assessing Officer has been vested with jurisdiction over an area by directions issued under Section 120, such Assessing Officer shall exercise jurisdiction over persons and cases falling within that area.

For business or profession, jurisdiction generally depends on the place where the business or profession is carried on. For other persons, jurisdiction is generally based on residence within the area.

Question of Jurisdiction of Assessing Officer

Where a dispute arises regarding jurisdiction, the matter is determined by the appropriate higher income-tax authority as provided under Section 124.