PR. COMMISSIONER OF INCOME TAX-7, DELHI vs. M/S UV REALTORS PVT. LTD.
What did the High Court hold?
The High Court agreed with the ITAT that the Assessing Officer and PCIT erred in their approach to jurisdiction. The objection to jurisdiction was raised within the time limit, and the matter should have been decided before assessment, not after.
What were the facts?
The Revenue appealed against an ITAT order that quashed the assessment. The Revenue argued that the assessee's PAN was under Kolkata's jurisdiction, and the assessee had not objected to this for years. However, the assessee had filed returns from New Delhi and objected to Kolkata's jurisdiction when selected for scrutiny.
What were the issues?
Whether the Assessing Officer had the correct jurisdiction to assess the assessee when the assessee had raised a timely objection to jurisdiction.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
ITA 228/2022 Page 1 of 3 $~22 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 228/2022 PR. COMMISSIONER OF INCOME TAX-7, DELHI ..... Appellant Through: Mr. Puneet Rai and Ms. Adeeba Mujahid and Mr. Karan Pandey, Advocates versus M/S UV REALTORS PVT. LTD. ..... Respondent Through: None % Date of Decision: 27th July, 2022 CORAM: HON'BLE MR. JUSTICE MANMOHAN HON'BLE MS. JUSTICE MANMEET PRITAM SINGH ARORA J U D G M E N T MANMOHAN, J (Oral): 1. Present Income Tax Appeal has been filed challenging the order dated 17th May, 2021 passed by the Income Tax Appellate Tribunal ('ITAT') in ITA 6033/Del/2016 & CO 11/DEL/2017 for the Assessment Year 2012-13. 2. Learned counsel for the Appellant states that the ITAT erred in quashing the assessment order passed by the Assessing Officer, Kolkata without appreciating that the PAN of the assessee-company was under the jurisdiction of the Assessing Officer. He states that the ITAT has erred in not appreciating that the PAN of the Assessee is lying at Kolkata and for the 2022:DHC:2838-DB
ITA 228/2022 Page 2 of 3 last six years the returns were being processed at Kolkata and during the period the assessee had never raised any objection to the jurisdiction. 3. He submits that the ITAT also failed to appreciate that the assessee had not made any request for change of jurisdiction under Section 127 of the Income Tax Act, 1961 (for short ‘Act’) between the Assessment Years 2006-07 and 2012-13. 4. However, a perusal of the paper book reveals that the Tribunal has found that the acknowledgment receipt of the return of income shows that the respondent assessee had been filing its returns since inception i.e. Assessment Year 2005-06 at the address mentioned at New Delhi. It is pertinent to mention that in the Assessment Year 2012-13 when the assessee’s case was selected for scrutiny, the assessee had within a month filed its objection to the jurisdiction of the ITO, Ward-10(2), Kolkata stating that the assessee’s jurisdiction lies with Assessing Officer, Range-18, New Delhi. 5. This Court is in agreement with the view of the Tribunal that as the assessee had raised objection within the time provided under Section 124(3) of the Act, the Assessing Officer, if not, satisfied with the correctness of the claim should have referred the matter for determination before the assessment was made to the PCIT. However, in the present case, the Assessing Officer rejected the objection regarding the jurisdiction and referred the matter to the PCIT to decide the issue after sixteen months. Further, the PCIT instead of deciding the issue of jurisdiction ordered that the issue of transfer of the jurisdiction will be decided after the completion of assessment. 2022:DHC:2838-DB
ITA 228/2022 Page 3 of 3 6. This Court is of the view that the approach adopted by both the Assessing Officers i.e. ITO, Ward-10(2), Kolkata as well as PCIT, Kolkata was contrary to the mandate of law, in particular, Section 124(4) of the Act. 7. Consequently, this Court is of the view that no substantial question of law arises for consideration in the present proceedings. Accordingly, the present appeal is dismissed. MANMOHAN, J MANMEET PRITAM SINGH ARORA, J JULY 27, 2022 AS 2022:DHC:2838-DB
More judgments on Section 127
- Radhakishan Potharajula, Karim Nagar vs ITO (Int Taxn)-2, HyderabadITA 2340/HYD/2025[2016-17]Status: Disposed16 Oct 2026AY 2016-17
- Kishor Kumar Aggarwal, Gurgaon vs ACIT-Central Circle-30- Delhi., DelhiITA 2305/DEL/2026[2020-21]Status: Disposed7 Oct 2026AY 2020-21
- Kishor Kumar Aggarwal, Gurgaon vs ACIT-Central Circle-30, DelhiITA 2304/DEL/2026[2019-20]Status: Disposed7 Oct 2026AY 2019-20
- Chenna Narayana Chakka, Hyderabad vs ITO, Ward 6(1), HyderabadITA 1944/HYD/2025[2014-15]Status: Disposed30 Sept 2026AY 2014-15
- Chenna Narayana Chakka, Hyderabad vs ITO, Ward-6(1), HyderabadITA 1943/HYD/2025[2013-14]Status: Disposed30 Sept 2026AY 2013-14
Recent GST High Court judgments
Search GST case law →- Tankala Soumya vs. Assistant Commissioner Of State Tax, CT And GST, Rayagada Circle, RayagadaOrissa · 31 Oct 2026
- M/S Pooja, Town Hallroad, Cuttack vs. State Tax Officer, Cuttack-I West Circle,CuttackOrissa · 31 Oct 2026
- M/S Chicvogue Fashions Lip, Ganjam vs. State Tax Officer Bhubaneswar- Ii CircleOrissa · 31 Oct 2026
- M/S Priya, Townhall Road, Cuttack vs. Superintendent Cuttack- I Range, CuttackOrissa · 31 Oct 2026
- Dwaraka Jewellers, Bhubaneswar vs. Superintendent, CGST And Central Excise, BhubaneswarOrissa · 31 Oct 2026