ITAT rules assessment orders for corporate returns below ₹20 lakh must be issued by ITOs, per CBDT instructions, not DCITs.
ITAT: Orders for Corporate Returns Below ₹20L Must Be by ITO
The Income Tax Appellate Tribunal (ITAT) has ruled that assessment orders for corporate taxpayers with return totals below ₹20 lakh in mofussil areas, and ₹30 lakh in metro cities, must be issued exclusively by the Income Tax Officer (ITO), not by Deputy Commissioners (DCITs), in accordance with CBDT instructions.
The decision clarifies jurisdictional thresholds for authority delegation. The CBDT had issued operational guidelines specifying that higher-value assessments may be handled by DCITs, but smaller cases must remain with ITOs to ensure proper distribution of workload and accountability.
This ruling has administrative significance for tax litigation strategy. Counsel must scrutinize the assessing officer’s designation at the threshold of appeals, as jurisdictional overreach may render assessments void ab initio.
