Section 242 — Jurisdiction of Assessing Officers

(1) Where an Assessing Officer has been vested with jurisdiction over
any area by virtue of any direction or order issued under section 241(1) or (2)
or (3), he shall have jurisdiction within the limits of such area,—
( a) in respect of any person carrying on a business or profession, if the place
at which he carries on his business or profession is situated within the
area, or where his business or profession is carried on in more places
than one, if the principal place of his business or profession is situated
within the area; and
( b) in respect of any other person residing within the area.
(2) 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 specified
income-tax authority.
(3) Where under this section, a question arises relating to areas within the jurisdiction
of different specified income-tax authorities, the question shall be determined––
( a) by the specified income-tax authorities concerned; or
( b) by the Board or by such specified income-tax authority as the Board may,
by notification, specify in this behalf, if they are not in agreement.
(4) No person shall call in question the jurisdiction of an Assessing Officer,––
( a) where he has made a return under section 263(1), after the expiry of one
month from the date on which he was served with a notice under section
268(1) or 270(8) or after the completion of the assessment, whichever is
earlier;
( b) where he has made no such return, after the expiry of the time allowed
by the notice under section 268(1) or 280(2) for the making of the return
or by the notice under section 271(2) to show cause why the assessment
should not be completed to the best of the judgment of the Assessing
Officer, whichever is earlier;
( c) where an action has been taken under section 247 or 248, after the expiry
of one month from the date on which he was served with a notice under
section 294(1)(a) or after the completion of the assessment, whichever
is earlier.
(5) Subject to the provisions of sub-section (4), where an assessee calls in question
the jurisdiction of an Assessing Officer, then the Assessing Officer shall, if not
satisfied with the correctness of the claim, refer the matter for determination under
sub-section (2) or (3) before the assessment is made.
(6) Irrespective of anything contained in this section or in any direction or order
issued under section 241, every Assessing Officer shall have all the powers conferred
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 directions or orders issued under section 241(1) or (2) or (3).