CBDT Rationalizes Appellate Jurisdiction in Search Cases

On 15 December 2025, the Central Board of Direct Taxes (CBDT) issued a significant notification under Section 120 of the Income-tax Act, 1961, read with Sections 246A and 248. This notification assigns and rationalizes the appellate jurisdiction of Commissioners of Income Tax (Appeals) [CIT(A)] across India, particularly for search, requisition, and survey-linked cases. In simple terms, it clarifies:

Which CIT(A) will hear appeals
Appeals arising from which Assessing Officers or Commissionerate

Legal Authority & Statutory Basis

Section 120(1) & 120(2): Empowers CBDT to allocate jurisdiction to income-tax authorities.
Sections 246A & 248: Governs appeals under the Act.
Earlier Notifications Continued:
- S.O. 2907(E) dated 13.11.2014
- S.O. 2752(E) & S.O. 2754(E) dated 22.10.2014

These provisions allow CBDT to allocate territorial, functional, and class-based jurisdiction, ensuring clarity in appellate proceedings.

Scope of Appeals Covered

The notification covers three categories of appeals:

Search-related assessments under Sections 132, 132A, and 133A.
Additions based on seized or impounded material.
Penalty orders linked to search/seizure cases.

Schedule – The Heart of the Notification

The Schedule attached to Notification 170/2025 specifies:

CIT(A) Designation (e.g., Hyderabad-11, Delhi-23, Mumbai-49)
Headquarters
Income-tax Authorities under their jurisdiction

👉 This mapping ensures procedural certainty, avoiding jurisdictional disputes and invalid filings.

Practical Implications

✔ Correct Appellate Forum: Filing before the right CIT(A) is mandatory.
✔ Critical for Search Cases: Wrong filing can lead to dismissal, delay, or limitation issues.
✔ Uniformity & Efficiency: Centralized handling of complex cases ensures consistency.

Litigation Risks of Filing Before Wrong CIT(A)

1. Jurisdiction is Statutory, Not Procedural

Jurisdiction flows from CBDT notifications under Section 120.
Consent or waiver cannot confer jurisdiction.
📌 Consequence: Appeal before a non-jurisdictional CIT(A) is defective.

2. Core Risks

(A) Appeal May Be Void: Orders by an authority lacking jurisdiction are nullities.
(B) Limitation Risk: Time spent before wrong CIT(A) is not automatically excluded. Fresh appeal may be time-barred.
(C) Uncertain Condonation: Courts rarely condone delay when notifications are clear.
(D) Objection at Any Stage: Jurisdictional defect can be raised even before ITAT or High Court.
(E) Conflicting Proceedings: Wrong filing can lead to parallel or conflicting orders.

3. Special Risk in Search Cases

Notifications like this are precise and table-driven.
Courts are less sympathetic to errors in such cases.

4. Section 292B Cannot Cure Jurisdictional Defect

It cures technical mistakes, not lack of jurisdiction.

Expert Approach: How Senior Tax Litigators Handle Jurisdiction

Step 1: Identify Nature of Order

Regular assessment → Normal territorial jurisdiction
Search assessment (153A/153C) → Special jurisdiction
Penalty linked to search → Same CIT(A) as quantum appeal

📌 Rule: If search-linked, ignore PAN jurisdiction and refer to CBDT Schedule.

Step 2: Verify Coverage Under Notification

Check if assessment refers to Sections 132/132A/133A or penalty is linked to such cases.

Step 3: Identify Assessing Authority

Note AO designation and Commissionerate from the order.

Step 4: Match with CBDT Schedule

Use the notification table to map AO → CIT(A).

Step 5: Non-Search Cases

Follow territorial jurisdiction as per latest Section 120 notification.

Step 6: Cross-Verify on Income-tax Portal

Do not rely blindly on auto-populated CIT(A) in e-filing portal, which may occur due to wrong inputs.

Step 7: Special Situations

Group searches → Highest demand PAN decides jurisdiction.
Penalty appeals → Same CIT(A) as quantum appeal.

Step 8: Litigation-Safe Checklist

✔ Identify section under which order is passed
✔ Check for search/survey linkage
✔ Note AO & Commissionerate
✔ Match exact entry in CBDT Schedule
✔ Cross-verify with portal
✔ Document jurisdiction reasoning

📌 Golden Rule: Jurisdiction follows nature of case and CBDT notification—not PAN address.

Defensive Strategies

✔ Pre-filing Jurisdiction Audit
✔ Protective Measures in Doubtful Cases
✔ Early Objection Resolution

Effective Date

📌 Immediate effect from 15 December 2025.

Conclusion:

This CBDT notification is more than a routine administrative update, it is a cornerstone for ensuring clarity, consistency, and efficiency in appellate proceedings under the Income-tax Act. By centralizing jurisdiction for search-related and penalty-linked appeals, the Board has eliminated ambiguity and strengthened procedural discipline.

For taxpayers and professionals, this is not just a compliance requirement, it is a litigation safeguard. Filing before the wrong CIT(A) is not a minor lapse; it is a jurisdictional defect that can nullify the entire appellate process and jeopardize limitation periods. In an era of precise, table-driven notifications, due diligence is non-negotiable.

The golden rule remains: “Jurisdiction follows the nature of the case and CBDT’s notification; not convenience, PAN location, or assumptions“.

Adopt a jurisdiction audit approach, cross-verify with the Schedule, and document your reasoning. In high stakes search cases, this proactive strategy is the difference between securing relief and losing it forever.

References:

CBDT notification 170/2025 dated 15 December 2025

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