PR. COMMISSIONER OF INOCME TAX-1, CHD vs. M/S YPT ENTERTAINMENT HOUSE P. LTD.

Facts

The Principal Commissioner of Income Tax-1, Chandigarh (the Revenue) filed an appeal before the Punjab and Haryana High Court against an order concerning M/s YPT Entertainment House P. Ltd. (the assessee). The assessee's counsel raised a preliminary objection regarding the maintainability of the appeal before the Punjab and Haryana High Court. The objection was based on the Supreme Court's judgment in Principal Commissioner of Income Tax-I, Chandigarh vs. ABC Papers Ltd. (2022) 9 SCC 1. The assessee argued that jurisdiction for the appeal should lie with the Allahabad High Court, as the Assessing Officer in this case was situated in Noida. The counsel for the Revenue did not object to this submission.

Held

The High Court, in view of the Supreme Court's decision in Principal Commissioner of Income Tax-I, Chandigarh vs. ABC Papers Ltd. (2022) 9 SCC 1, held that the jurisdiction for filing an appeal under Section 260-A of the Income Tax Act, 1961, lies with the High Court within whose territorial jurisdiction the Assessing Officer who passed the assessment order is situated. The Court noted that the assessment order was passed by the Deputy Commissioner of Income Tax, Central Circle, Noida, and the appeal was heard by the Commissioner of Income Tax (Appeals), Kanpur. Therefore, the jurisdiction would lie with the Allahabad High Court. The appeal was allowed to be withdrawn with liberty to file it before the appropriate court of jurisdiction. The appeal was dismissed as withdrawn.

Key Issues

1. Whether the jurisdiction for filing an appeal under Section 260-A of the Income Tax Act, 1961, lies with the High Court within whose territorial jurisdiction the Assessing Officer who passed the assessment order is situated, or with the High Court within whose territorial jurisdiction the Income Tax Appellate Tribunal (ITAT) bench is located? (Question of law, turning on Section 260-A). Contentions: Assessee: Relied on the Supreme Court judgment in Principal Commissioner of Income Tax-I, Chandigarh vs. ABC Papers Ltd. (2022) 9 SCC 1, arguing that jurisdiction vests with the High Court where the Assessing Officer is situated. In this case, the Assessing Officer being in Noida, the Allahabad High Court has jurisdiction. Revenue: Did not object to the assessee's contention regarding jurisdiction.