Jurisdiction of Commissioners of Income-tax u/s 121. - Income Tax - 1204/CBDT

INSTRUCTION NO. 1204/CBDT Dated : September 14, 1978 Section(s) Referred: 121 Statute: Income - Tax Act, 1961 Section 121(1) lays down that Commissioners of Income-tax shall perform their functions in respect of such areas or of such persons or classes of persons or of such incomes or classes of income or of such cases or classes of cases as the Board may direct. Thus the power to confer jurisdiction is exclusively vested with the Board by the Notification under section 121 issued by the Board. 2. Instances have however come to the notice of the Board, where certain circles have been created/deleted by the Commissioners under their own power without simultaneously getting these covered by notification under section 121 of the Income-tax Act. Some Commissioners approached the Board for issue of notification under section 121 with retrospective effect to regularise the creation/deletion. It may be emphasized that notification cannot take effect from retrospective effects and consequently such requests present considerable legal difficulties. 3. In order to avoid any legal complications Board has decided that whenever any circle is proposed to be created/deleted, the Board must be approached well in advance so that the notification under section 121 of the Income-tax Act can be issued in time. 4. These instructions may be kept in view while creating or deleting certain circles.