Jurisdiction of Assessing Officers [Section 124] :

(i) Where the Assessing Officer has been vested with jurisdiction over any area within the limits of such area he shall have jurisdiction in respect of any person carrying on business or profession within that area or in respect of a person whose business or profession is carried on in more than one place, if his principal place of business is in that area and in respect of any other person residing within the area.

(ii) Where a question arises under this section as to whether an Assessing Officer has jurisdiction to assess any person the question shall be determined by the Principal Director General or Director General or the Principal Chief Commissioner or Chief Commissioners or Principal Commissioner or Commissioner.

In case the question relates to an area within the jurisdiction of different Principal Director General or Director General or Principal Chief Commissioner or Chief Commissioners or Principal Commissioner or Commissioner then the question shall be determined by the Principal Director General or Director General or Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner concerned or if they are not in agreement, then the same shall be determined by the Board or by such Principal Director General or Director General or Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner as the Board may specify by way of notification in the Official Gazette.

(iii) Section 124(3)(a) provides that no person shall be entitled to call in question the jurisdiction of an Assessing Officer where such person has made a return of income under section 139(1), after the expiry of one month from the date on which he was served with a notice under section 142(1) or section 143(2) or after the completion of the assessment, whichever is earlier.

(iv) Section 124(3)(b) provides that the jurisdiction of the Assessing Officer shall not be called in question where no return has been made, after the expiry of the time allowed by the notice under section 142(1) or under section 148 for the making of the return or by the notice under section 144, whichever is earlier.

(v) Where the assessee questions the jurisdiction of an Assessing Officer, then, the Assessing Officer shall, if not satisfied with the correctness of the c laim refer the matter for determination under (ii) above before the assessment is made.

(vi) Every Assessing Officer shall have all the powers conferred by or under this Act on an Assessing Officer in respect of the income accruing or arising or received within the area, if any, over which he has been vested with jurisdiction by virtue of the direction or order issued under section 120(1) and 120(2).