Tax Glossary Definition
Jurisdiction refers to the power granted to a court, governmental authority, or administrative body to interpret laws, resolve disputes, and take official action within defined limits. These limits may relate to geography, the nature of the issues involved, the persons concerned, or the level of the institution within the judicial hierarchy. Territorial jurisdiction defines the physical area in which an authority may act; subject-matter jurisdiction restricts a body to certain kinds of cases; personal jurisdiction concerns which individuals or entities fall under its authority; and hierarchical jurisdiction distinguishes the roles of lower and higher courts.
Illustration:
A tax tribunal is empowered to decide controversies related to taxation but cannot adjudicate criminal matters, and a local court in Mumbai has no authority over cases arising in Delhi. Clear rules on jurisdiction help prevent overlapping powers, ensure orderly administration of justice, and guide individuals on the proper forum for legal relief.
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