ACIT, VARANASI vs. M/S MOTIWALA INDUSTRIES LTD., VARANASI

The assessee has filed this appeal challenging the order dated 26-03-2014 passed by Ld CIT(A)-VIII, New Delhi and it relates to the assessment year 2001- 02.

This is second round of proceeding. In the first round, the assessing officer had determined the total income at Rs.7,28,40,111/- as against the NIL income returned by the assessee. When the matter reached the ITAT, the Tribunal restored the matter to the file of AO. Accordingly, the assessing officer, Ward-5(4), Delhi, vide his order dated 18-12-2006, determined the total income at Rs.10,29,81,978/- in the second round. The Ld CI(A)-VIII, New Delhi, vide his order dated 26-03- 2014, partly allowed the appeal of the assessee. Aggrieved, the revenue has filed this appeal before Varanasi benches of ITAT.

In the meantime, a technical issue was noticed by the Tribunal, i.e., the co- ordinate bench, vide its interim order dated 12-01-2023, had expressed the view that the correct jurisdiction to deal with this appeal would be with Delhi benches of ITAT, since the assessing officer located in Delhi has passed the order. In support of the above said view, the co-ordinate bench has referred to the decision rendered by Hon’ble Supreme Court in the case of PCIT vs. ABC Papers Limited (Civil Appeal No. 4252 of 2022 dated 18-08-2022). Accordingly, the registry was directed to place the above said interim order passed by the co-ordinate bench before Hon’ble President. We notice that the Hon’ble President, vide his order dated 07-02-2023, has directed the registry to call for the comments of Ld VP (Lucknow Zone). Accordingly, the Hon’ble Vice President has recorded his comments on 08-02-2023 as under:-

Accordingly, the appeal came to be fixed before this bench.

It is pertinent to note that the assessee herein has gone into voluntary liquidation and the Hon’ble High Court of Allahabad has fixed the winding up date as 23.11.2006. Accordingly, Shri Rajneesh Kumar Singh, the official liquidator has written a letter dated 16-01-2023 stating that the appeal may be decided on merits.

None appeared on behalf of the assessee. We heard Ld D.R on this preliminary issue and perused the record. As noticed earlier, the assessment order has been passed by the Assessing officer located in Delhi and hence as per the decision rendered by Hon’ble Supreme Court in the case of ABC Papers Limited (supra), the jurisdiction would lie before Delhi benches of Tribunal. However, the revenue has filed the appeal before Varanasi benches of ITAT on the plea that the jurisdiction of the assessee has been transferred to Varanasi. However, as per the decision rendered by Hon’ble Supreme Court in the above said case, the jurisdiction would continue to be decided on the basis of the jurisdiction of the assessing officer, who passed the order. Accordingly, we are of the view that the revenue should have filed the appeal before the Delhi benches of ITAT.

In view of the above, we dismiss the appeal of the revenue on this technical ground. However, the revenue may prefer a fresh appeal before the Delhi benches along with the petition for condoning the delay citing the reasons for the delay in filing before the Delhi benches, if so advised.

In the result, the appeal filed by the revenue is dismissed.