Sections 243 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 243 lets a senior authority transfer a case from one Assessing Officer to another. Section 244 deals with a successor officer who continues a proceeding left by his predecessor. Section 245 lets the Central Government make a faceless jurisdiction scheme by notification. This article explains the three sections as per the Income-tax Act, 2025 as amended by the Finance Act, 2026.
The specified income-tax authority may transfer any case between Assessing Officers subordinate to him, after giving the assessee a reasonable opportunity of being heard where possible and recording reasons; no hearing is needed if the offices are in the same city, locality or place. A successor may continue a proceeding, but the assessee can demand a reopening or rehearing. Section 245 empowers a notified faceless scheme that must be laid before Parliament.
By section 1(3), the Act is in force from 1 April 2026, save as otherwise provided. No Finance Act, 2026 amendment is named for these sections. Later amendments, rules and notifications should be checked. For notices and disputes before the department, see our legal dispute resolution service.
Section 243: power to transfer cases
Who can transfer: sub-sections (1) and (2)
| Situation | Who passes the transfer order |
|---|---|
| The officers are subordinate to the same specified income-tax authority | That authority may transfer any case from one or more Assessing Officers to any other Assessing Officer or Officers (with or without concurrent jurisdiction) also subordinate to him (sub-section (1)) |
| The officers are subordinate to different specified authorities, and those authorities agree | The authority from whose jurisdiction the case is to be transferred may pass the order (sub-section (2)(a)) |
| They are subordinate to different authorities, and the authorities do not agree | The Board, or such specified income-tax authority as the Board may, by notification, specify (sub-section (2)(b)) |
Hearing: sub-sections (3) and (4)
The order of transfer may be passed after giving the assessee a reasonable opportunity of being heard, wherever it is possible to do so, and after recording his reasons. No such opportunity is required where the transfer is from one or more Assessing Officers to others and the offices of all of them are situated in the same city, locality or place (sub-section (4)).
Stage of the proceedings: sub-section (5)
A case may be transferred at any stage of the proceedings. It is not necessary to re-issue any notice already issued by the Assessing Officer or Officers from whom the case is transferred.
Meaning of case: sub-section (6)
For sections 241 and 243, "case", in relation to a person whose name is specified in an order or direction, means all proceedings under the Act in respect of any year which are pending on the date of the order or direction, or which have been completed on or before that date, and includes all proceedings that may be commenced after the date of the order or direction in respect of any year.
Specified income-tax authority: sub-section (7)
For sections 241, 242 and 243, "specified income-tax authority" means the Principal Director General or Director General or Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner. How jurisdiction is assigned and challenged is explained in our article on sections 241 and 242.
Section 244: change of incumbent
- Sub-section (1). Whenever, in respect of any proceeding under the Act, an income-tax authority ceases to exercise jurisdiction and is succeeded by another who has and exercises jurisdiction, the successor may continue the proceeding from the stage at which it was left by his predecessor.
- Sub-section (2). Before the proceeding is so continued, the assessee concerned may demand that (a) the previous proceeding or any part of it be reopened, or (b) he be reheard before any order of assessment is passed against him.
The section uses the word "may" for the successor and "may demand" for the assessee. It does not say how the demand is to be made, in what form or by what date; the text is silent.
Section 245: faceless jurisdiction of income-tax authorities
The scheme: sub-section (1)
The Central Government may, by notification, make a scheme for the purposes of:
- (a) exercise of the powers and functions of income-tax authorities referred to in section 241;
- (b) vesting the jurisdiction with the Assessing Officer under section 242;
- (c) exercise of the power to transfer cases under section 243; or
- (d) exercise of jurisdiction in case of change of incumbency under section 244.
Whether any scheme has been made, and what it provides, is not in the text consulted; no scheme is named here.
The aims: sub-section (2)
The scheme shall be made to impart greater efficiency, transparency and accountability by:
- (a) eliminating the interface between the income-tax authority and the assessee or any other person, to the extent technologically feasible;
- (b) optimising utilisation of the resources through economies of scale and functional specialisation; and
- (c) introducing a team-based exercise of powers and functions by two or more authorities, concurrently, in respect of any area, persons or classes of persons, incomes or classes of income, or cases or classes of cases, with dynamic jurisdiction.
Adapting the Act: sub-section (3)
For giving effect to the scheme, the Central Government may, by notification, direct that any provision of the Act shall not apply or shall apply with such exceptions, modifications and adaptations as specified in that notification.
Parliament: sub-section (4)
Every notification under sub-sections (1) and (3) shall, as soon as may be after it is issued, be laid before each House of Parliament.
The three sections side by side
| Point | Section 243 | Section 244 | Section 245 |
|---|---|---|---|
| Subject | Transfer of cases between Assessing Officers | Succession of one authority by another | Faceless jurisdiction scheme |
| Who acts | Specified income-tax authority; Board if authorities disagree | The successor authority | The Central Government, by notification |
| Hearing or demand | Reasonable opportunity of being heard where possible; not needed within the same city, locality or place | Assessee may demand reopening or rehearing | Not applicable; notifications laid before Parliament |
| Effect on notices | No need to re-issue notices already issued | Proceeding continues from the stage left | Provisions may be adapted by notification |
A worked example
Names and places are assumed.
A pending assessment of Rajani Traders is with Assessing Officer P and the office of Assessing Officer Q, to whom the Principal Commissioner wishes to transfer the case, is in a different city. Both officers are subordinate to the same Principal Commissioner.
- Under section 243(1), the Principal Commissioner, as the specified income-tax authority, may transfer the case.
- Under section 243(3), he may pass the order after giving Rajani Traders a reasonable opportunity of being heard, wherever it is possible, and after recording his reasons. Because the offices are not in the same city, the exception in sub-section (4) does not apply.
- Under section 243(5), the transfer may be made at any stage and notices already issued by Assessing Officer P need not be re-issued.
If Assessing Officer Q later leaves and is succeeded by Assessing Officer R, section 244(1) lets R continue from the stage left by Q, and Rajani Traders may demand under section 244(2) that the previous proceeding or any part be reopened or that it be reheard before any order of assessment is passed.
Need help with a transfer or a successor officer?
A transfer of a case, or a change of officer in the middle of a proceeding, can change who you deal with, but not the stage your case has reached. Our team can review the order, the hearing and your rights under section 244(2) through our legal dispute resolution service.
Key takeaways
- The specified income-tax authority transfers cases between Assessing Officers subordinate to him; the Board decides if two authorities disagree.
- A hearing is given where possible, with reasons recorded; none is required where the offices are in the same city, locality or place.
- Transfer can be at any stage and does not require notices to be re-issued.
- A successor continues the proceeding, but the assessee may demand reopening or a rehearing.
- Faceless jurisdiction rests on a notified scheme whose notifications are laid before Parliament.
Read next
- Sections 241 and 242: jurisdiction of income-tax authorities and Assessing Officers
- Sections 248 and 249: powers to requisition and reasons not to be disclosed
- Section 246: summons and civil court powers
- Chapter XIV: tax administration
Disclaimer: Based on the Income-tax Act, 2025 (30 of 2025) as amended by the Finance Act, 2026, as consulted on 2 October 2026. It explains the words of the Act only; the Income-tax Rules, 2026, notifications, circulars, later amendments and the way the tax authorities and courts apply these provisions should be checked. This article is general information, not legal advice; check the official text before acting.