5.  Jurisdiction of income tax authorities.-

(1)   Subject to the provisions of this Ordinance,-

(a)    the Regional Commissioners and the Director-General of Training and Research, Directors-General of Investigation and Intelligence shall perform such functions, in respect of such persons or classes of persons or such areas, as may be assigned to them by the Central Board of Revenue;

(b)    the Commissioners and the Appellate Additional Commissioners shall perform their functions in respect of such persons or classes of persons or such areas as the Central Board of Revenue may direct; and the Central Board of Revenue may, by general or special order in writing, direct that the powers conferred on the Appellate Additional Commissioner by or under this Ordinance shall, in respect of appeals relating to specified cases or classes of cases or specified persons or classes of persons, be exercised by the Commissioners and for the purposes of any proceedings in respect of such cases or persons, references in this Ordinance or in any rules made thereunder to "Appellate Additional Commissioner" shall be deemed to be references to "Commissioner":

        Provided that the Central Board of Revenue may, by general or special order in writing, direct that the jurisdiction of the Commissioners exercising the powers of an Appellate Additional Commissioner and the Appellate Additional Commissioners shall be determined by the Regional Commissioner:

        Provided further that the Regional Commissioners may transfer jurisdiction in respect of cases or persons from one Commissioner subordinate to him to another;

(c)    the Inspecting Additional Commissioners and the Deputy Commissioners shall perform their functions in respect of such persons or classes of persons or such areas as the Commissioners, to whom they are subordinate, may direct; and the Commissioner may, with the prior approval of the Central Board of Revenue or, if the Central Board of Revenue so directs, of the Regional Commissioner, by general or special order in writing direct that the powers conferred on the Deputy Commissioner and the Inspecting Additional Commissioner by or under this Ordinance shall, in respect of all or any proceedings relating to specified cases or classes of cases or specified persons or classes of persons, be exercised by the Inspecting Additional Commissioner and the Commissioner, respectively, and, for the purposes of any proceedings in respect of such cases or persons references in this Ordinance or in any rules made thereunder to "Deputy Commissioner" and "Inspecting Additional Commissioner" shall be deemed to be references to "Inspecting Additional Commissioner" and "Commissioner", respectively;

(cc)  Notwithstanding anything contained in clause (c), the Commissioner may by general or special order in writing, direct that all or any of the powers conferred on the Deputy Commissioner and the Inspecting Additional Commissioner shall, in respect of all or any proceedings relating to specified cases or classes of cases or specified persons or classes of persons, be exercised by the Income Tax Panel and the Commissioner, respectively, and, for the purposes of any proceedings in respect of such cases or persons, references in this Ordinance or in any rules made thereunder to "Deputy Commissioner" and "Inspecting Additional Commissioner" shall be deemed to be references to "Income Tax Panel" and "Commissioner", respectively:

        Provided that, any function performed by the Deputy Commissioner as members of the Income Tax Panel, on the directions of the said Inspecting Additional Commissioner, shall be deemed to have been performed in exercise of the powers conferred on the Income Tax Panel:

        Provided further that an order made by the Income Tax Panel under any provision of this Ordinance shall be made only by the said Inspecting Additional Commissioner:

        Provided further that, if any one member of the Income Tax Panel, other than the Chairman, is absent from any sitting of the Income Tax Panel, the proceedings of the Panel may continue, and no act, proceedings or order of the Panel shall be invalid or be called in question merely on the around of such absence; and

(d)    the Inspectors of Income Tax shall perform such functions as may be assigned to them by the Income Tax authority under whom they are appointed to work.

 

       Explanation.-The power to confer jurisdiction under this sub-section shall include the power to transfer jurisdiction from one income tax authority to another.

(2)   Where any directions issued under sub-section (1) have assigned to two or more income tax authorities the same functions or functions in respect of the same persons or classes of persons or the same area, they shall perform their functions in accordance with such orders as the Central Board of Revenue, or any other authority to whom they are subordinate, may make for the allocation of functions and the distribution of the work to be performed.

(3)   Within the area assigned to him, the Deputy Commissioner shall have jurisdiction,-

(a)    in respect of any person carrying on business or profession, if the place of business or profession is situated within such area, or where the business or profession is carried on in more places than one, if the principal place of the business or profession is situated within such area; and

(b)    in respect of any other person, if he resides within the area.

(4)   Where a question arises as to whether Deputy Commissioner has jurisdiction to assess any person, the question shall be determined by the Commissioner, or where the question is one relating to the jurisdiction of different Commissioners, by the Regional Commissioner or Regional Commissioners concerned and, if they are not in agreement, by the Central Board of Revenue.

(5)   No person shall be entitled to call in question the jurisdiction of Deputy Commissioner after he has made the return of total income or, where he has not made such return, after the time allowed by any notice served on him for making such return has expired.

(6)   Notwithstanding anything contained in this section, every Deputy Commissioner shall have all the powers conferred by, or under, this Ordinance on Deputy Commissioner in respect of any income accruing or arising or received or deemed, under any provision of this Ordinance, to accrue or arise or be received within the area assigned to him.