ACIT CENTRAL CIRCLE 1(3), AHMEDABAD, AHMEDABAD vs. ASHOKBHAI JAGUBHAI KHENI, SURAT

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ITSSA 59/AHD/2025Status: DisposedITAT Ahmedabad18 August 2025AY 2013-144 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the territorial jurisdiction for adjudicating appeals before the ITAT and Hon'ble High Courts lies within the jurisdiction where the Assessing Officer (AO) passed the order, irrespective of any subsequent transfer of case records under Section 127 of the Income Tax Act, 1961. The Hon'ble Supreme Court's decision in Commissioner of Income Tax vs. ABC Papers Ltd. (2022 SSC online SC 1036) was relied upon. The Tribunal noted that in the present case, the impugned assessment orders and the first appellate orders were admittedly passed by the AO and CIT(A) at Surat. Therefore, the territorial jurisdiction to adjudicate these appeals lies with the ITAT Bench at Surat. Consequently, the appeals filed before the Ahmedabad Benches were dismissed as not maintainable. The Revenue was granted liberty to file the appeals before the ITAT Benches of competent territorial jurisdiction, with a condonation of time for the period spent in prosecuting the appeals before the Ahmedabad Bench and an additional 30 days thereafter for filing fresh appeals.

What were the facts?

The Revenue filed six appeals before the ITAT Ahmedabad Bench against the orders of the CIT(A), Surat. These appeals pertained to assessment years 2011-12, 2013-14, and 2014-15, and challenged the deletion of quantum additions and penalties levied under Sections 271D and 271E of the Income Tax Act, 1961. The assessee, Ashokbhai Jagubhai Kheni, argued that the appeals were not maintainable before the Ahmedabad Bench as the assessment orders and first appellate orders were passed by authorities in Surat, implying the Surat Bench had territorial jurisdiction. The Revenue contended that case records had been transferred to the jurisdiction of Dy.CIT, Central Circle-1(3), Ahmedabad, justifying the filing before the Ahmedabad Bench.

What were the issues?

1. Whether the ITAT Ahmedabad Bench has the territorial jurisdiction to adjudicate appeals against orders passed by authorities in Surat, even if case records have been transferred to Ahmedabad under Section 127 of the Income Tax Act, 1961. Assessee's Contention: The assessee argued that the territorial jurisdiction for adjudicating appeals lies with the ITAT Bench in whose jurisdiction the Assessing Officer (AO) passed the original assessment order and the Commissioner of Income Tax (Appeals) [CIT(A)] passed the first appellate order. Therefore, the Ahmedabad Bench lacked jurisdiction as the orders originated from Surat. Revenue's Contention: The Revenue relied on a letter from the Assistant Commissioner of Income-tax, Central Circle-1(3), Ahmedabad, stating that the case records pertaining to the assessee had been transferred to the jurisdiction of Dy.CIT, Central Circle-1(3), Ahmedabad, after the impugned orders were passed. This transfer, the Revenue argued, justified filing the appeals before the Ahmedabad Benches.

Which sections of the Income-tax Act were involved?

Section 127,Section 271D,Section 271E

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “A” BENCH, AHMEDABAD

Before: Shri Sanjay Garg & Shri Narendra Prasad Sinha

Consolidated Appeals (2)

ITA 1207/Ahd/2025AY 2014-15
ITA 1256/Ahd/2025AY 2011-12
For Appellant: Shri Dhruvang H. Diwan, AR
For Respondent: Shri Alpesh Parmar, CIT-DR &, Shri B.P. Srivastava, Sr.DR
Hearing: 12/08/2025Pronounced: 18/08/2025

Per Sanjay Garg, Judicial Member:

The captioned appeals have been preferred by the Revenue against the separate orders of the Commissioner of Income Tax (Appeals), Surat [hereinafter referred to as ‘CIT(A)’]. ITA No.1207/Ahd/2025 relating to Assessment Year (AY) 2014-15, ITA No.59/Ahd/2025 for AY 2013-14 and ITA No.60/Ahd/2025 for AY 2011-12 are against the action of the CIT(A)-

ITA No.1207/Ahd/2025 & five Others ACIT vs. Ashokbhai Jagubhai Kheni Asst. Years :2014-15 & 2013-14 & 2011-12 2

Surat in deleting the quantum additions, whereas, ITA No.1255/Ahd/2025 for AY 2011-12 is in relation to penalty levied by the Assessing Officer (AO) u/s.271D of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) and ITA Nos.1256 & 1257/Ahd/2025 for AYs 2011-12 & 2013-14 respectively are against the action of the CIT(A) in deleting the penalty levied by the AO u/s.271E of the Act.

2.

At the outset, the Ld. Counsel for the assessee has invited our attention to the impugned orders of the AO to submit that the assessment orders/penalty orders in all these appeals were passed by the Dy.CIT, Central Circle-2, Surat and even the impugned appellate orders have also been passed by Commissioner of Income Tax (Appeals)-4 Surat. He, therefore, has submitted that territorial jurisdiction to adjudicate these appeals against the impugned orders of the CIT(A) lies with the Income Tax Appellate Tribunal Surat Bench and not ITAT Ahmedabad Benches.

3.

The Ld.DR has relied upon a letter of the Assistant Commissioner of Income-tax, Central Circle-1(3), Ahmedabad, wherein it has been pointed out that after passing of the impugned orders of the CIT(A), case records pertaining to assessee have been transferred to the jurisdiction of Dy.CIT, Central Circle-1(3). Ahmedabad. He, therefore, has submitted that the captioned appeals have been rightly filed before the Ahmedabad Benches of the Tribunal.

4.

We have heard the rival contentions and gone through the record. The issue has been settled by the decision of the Hon’ble Supreme Court in the case of Commissioner of Income Tax vs. ABC Papers Ltd. (2022 SSC online SC 1036) decided on 18/08/2022, wherein, the Hon’ble Supreme Court categorically held that even if the case records have been transferred to a

ITA No.1207/Ahd/2025 & five Others ACIT vs. Ashokbhai Jagubhai Kheni Asst. Years :2014-15 & 2013-14 & 2011-12 3 different jurisdiction by exercise of powers by the competent Income-tax Authority u/s.127 of the Income Tax Act, the territorial jurisdiction for adjudication of the appeals in respect of ITAT and Hon’ble High Courts would lie within whose jurisdiction the AO has passed the order. It has also been held that this principle will be applicable even in case of transfer of the records u/s.127 of the Income Tax Act, for the same assessment year. In the case in hand, admittedly, the impugned assessment orders as well as the first appellate orders have been passed by the AO and the CIT(A) at Surat. Therefore, the territorial jurisdiction to adjudicate these appeals lies with the ITAT Bench at Surat. The present appeals, therefore, have been wrongly filed before the Ahmedabad Benches of this Tribunal and, therefore, the same are, not maintainable being outside the territorial jurisdiction of this Tribunal. Therefore, all the captioned appeals are hereby dismissed as not maintainable, however, with the liberty to Revenue to file these appeals before the ITAT Benches of competent territorial jurisdiction. The time consumed in prosecuting the present appeals i.e. from the date of filing of these appeals at ITAT Ahmedabad Benches till the date of communication of this order and further a period of 30 days thereafter, will not be considered for the purpose of limitation period, if the revenue chooses to file fresh appeals as noted above.

5.

With the above observations, all the six appeals of the Revenue are hereby dismissed. Order pronounced in the Open Court 18/08/2025.

Sd/- Sd/- ( Narendra Prasad Sinha ) ( Sanjay Garg ) Accountant Member Judicial Member अहमदाबाद/Ahmedabad, िदनांक/Dated 18/08/2025 टी.सी.नायर, व.िन.स./T.C. NAIR, Sr. PS

ITA No.1207/Ahd/2025 & five Others ACIT vs. Ashokbhai Jagubhai Kheni Asst. Years :2014-15 & 2013-14 & 2011-12 4

आदेश की !ितिलिप अ"ेिषत/Copy of the Order forwarded to : 1. अपीलाथ& / The Appellant 2. !#थ& / The Respondent. 3. संबंिधत आयकर आयु' / Concerned CIT 4. आयकर आयु' अपील ( ) / The CIT(A)/Pr.CIT concerned िवभागीय !ितिनिध आयकर अपीलीय अिधकरण अहमदाबाद/DR,ITAT, Ahmedabad. 5. , , 6. गाड� फाईल / Guard file.

आदेशानुसार/ BY ORDER, स#ािपत !ित //True Copy// सहायक पंजीकार (Asstt. Registrar) आयकर अपीलीय अिधकरण, ITAT, Ahmedabad

Date of dictation (dictation pad is attached with file) : 1. 14.8.2025 : 2. Date on which the typed draft is placed before the 14.8.2025 Dictating Member. Date on which the approved draft comes to the Sr.P.S./P.S : 3. : 4. Date on which the fair order is placed before the Dictating Member for pronouncement. : 5. Date on which fair order placed before Other Member : 18.8.25 6. Date on which the fair order comes back to the Sr.P.S./P.S. : 18.8.25 7. Date on which the file goes to the Bench Clerk. : 8. Date on which the file goes to the Head Clerk. : 9. The date on which the file goes to the Assistant Registrar for signature on the order. : 10. Date of Despatch of the Order

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