Sec.2(7A)-Demarcation of jurisdiction of AOs. - Income Tax - 1821/1989

INSTRUCTION NO. 1821/1989 Dated: June 14, 1989 The Direct Tax Laws(Amendment) Act, 1987 inserted a new clause 7A in sec.2 of the I.T.Act defining 3 categories of assessing officer namely the ITO, ACIT, DCIT empowered to function as assessing officer. The designation of the ITO(Group A) and the IAC was also changed by the aforesaid Amendment Act. Consequently jurisdiction of the 3 categories of assessing officers was clearly demarcated vide chairman's D.O.Letter F.No.DIR(Hqrs)GH/88-89/3012-3 dated 15th April, 1988. The basis followed for demarcation of jurisdiction was the amount of income or loss shown in the return pending as on the 1st April of the relevant financial year. 2. In pursuance of the aforesaid demarcation of jurisdiction a number of cases have been transferred to offices located at places different from the places where the tax payers are carrying on their business or are ordinarily residing because there are no posts of DC's or ACsIT at such places. This has resulted in hardship to taxpayers in many cases and a number of representations have been received in the board in this regard. 3. The Board desire that in order to avoid inconvenience to tax-payers in such cases, the assessing officers may go on periodical tours to places where such tax payers were earlier being assessed that is the place where they may be called to business or are ordinarily residing and they may be called to headquarters of the assessing officer only when it is unavoidable. 4. These instructions may be brought to the notice of all the assessing officers working in your region.