Section 120:
Jurisdiction of income-tax authorities
1(1) Income-tax authorities shall exercise all or any
of the powers and perform all or any of the functions conferred on, or, as the case may be, assigned to
such authorities by or under this Act in accordance with such directions as the Board may issue for the
exercise of the powers and performance of the functions by all or any of those authorities.
2
Explanation.—For the removal of doubts, it is hereby declared that any income-tax authority, being
an authority higher in rank, may, if so directed by the Board, exercise the powers and perform the
functions of the income-tax authority lower in rank and any such direction issued by the Board shall be
deemed to be a direction issued under sub-section (1).
(2) The directions of the Board under sub-section (1) may authorise any other income-tax authority to
issue orders in writing for the exercise of the powers and performance of the functions by all or any of the
other income-tax authorities who are subordinate to it.
(3) In issuing the directions or orders referred to in sub-sections (1) and (2), the Board or other
income-tax authority authorised by it may have regard to any one or more of the following criteria,
namely :—
(a) territorial area;
(b) persons or classes of persons;
(c) incomes or classes of income; and
(d) cases or classes of cases.
(4) Without prejudice to the provisions of sub-sections (1) and (2), the Board may, by general or
special order, and subject to such conditions, restrictions or limitations as may be specified therein,—
(a) authorise any 3
Principal Director General or Director General or 4
Principal Director or
Director to perform such functions of any other income-tax authority as may be assigned to him by
the Board;
(b) empower the 3
Principal Director General or Director General or 5
Principal Chief
Commissioner or Chief Commissioner or 6
Principal Commissioner or Commissioner to issue
orders in writing that the powers and functions conferred on, or as the case may be, assigned to, the
Assessing Officer by or under this Act in respect of any specified area or persons or classes of
persons or incomes or classes of income or cases or classes of cases, shall be exercised or performed
by 7
an Additional Commissioner or 8
an Additional Director or a 9
Joint Commissioner or a
10Joint Director and, where any order is made under this clause, 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 11an Additional Commissioner or 12Additional Director or a 9
Joint Commissioner or 10Joint
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 9
Joint Commissioner shall not apply.
(5) The directions and orders referred to in sub-sections (1) and (2) may, wherever considered
necessary or appropriate for the proper management of the work, 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; and, where such powers and functions are exercised and performed concurrently by the Assessing
Officers of different classes, any authority lower in rank amongst them shall exercise the powers and
perform the functions as any higher authority amongst them may direct, and, further, 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 higher authority and any provision of this Act requiring approval or sanction of any
such authority shall not apply.
(6) Notwithstanding anything contained in any direction or order issued under this section, or
in section 124, the Board may, by notification in the Official Gazette, direct that for the purpose of
furnishing of the return of income or the doing of any other act or thing under this Act or any rule made
thereunder by any person or class of persons, the income-tax authority exercising and performing the
powers and functions in relation to the said person or class of persons shall be such authority as may be
specified in the notification.
Notes:
1. Subs. by Act 4 of 1988, s. 32, for section 120 (w.e.f. 1-4-1988).
2. Ins. by Act 21 of 2006, s. 30 (w.r.e.f. 1-4-1988)
3. Subs. by Act 25 of 2014, s. 4, for “Director General” (w.r.e.f. 1-6-2013).
4. Subs. by s. 4, ibid., for “Director” (w.r.e.f. 1-6-2013).
5. Subs. by s. 4, ibid., for “Chief Commissioner” (w.r.e.f. 1-6-2013).
6. Subs. by s. 4, ibid., for “Commissioner” (w.r.e.f. 1-6-2013).
7. Ins. by Act 22 of 2007, s. 42 (w.r.e.f. 1-6-1994).
8. Ins. by s. 42, ibid. (w.r.e.f. 1-10-1996).
9. Subs. by Act 21 of 1998, s. 3, for “Deputy Commissioner” (w.r.e.f 1-10-1998).
10. Subs. by s. 3, ibid., for “Deputy Director” (w.e.f. 1-10-1998).
11. Ins. by Act 22 of 2007, s. 42 (w.r.e.f. 1-6-1994).
12. Ins. by s. 42, ibid. (w.r.e.f. 1-10-1996).