The Pri. Comissioner Of Income Tax (Central) Bhopal vs. M/S Agroha Ornaments

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ITA/2/2026HC Madhya Pradesh25 February 2026Bench: HON'BLE SHRI JUSTICE VIVEK RUSIA2 pages
For Petitioner: Siddharth Sharma
AI SummaryRemanded

What did the High Court hold?

The High Court of Madhya Pradesh at Jabalpur held that the territorial jurisdiction for hearing the Income Tax Appeal lies with the High Court of Madhya Pradesh bench at Gwalior. The Court relied on the Supreme Court's decision in Principal Commissioner of Income Tax Vs. M/s. ABC Papers Ltd. (2022) 9 SCC 1. The reasoning was that appeals against every decision of the ITAT shall lie only before the High Court within whose jurisdiction the Assessing Officer who passed the assessment order is situated. This principle applies even if the case has been transferred under Section 127 of the Act. Therefore, since the Assistant Commissioner of Income Tax (Central), Gwalior Station, Bhopal, passed the order, and the assessee is a resident of Gwalior, the appeal is maintainable before the Gwalior Bench. The registry was directed to transfer the ITA to the Gwalior Bench.

What were the facts?

This Indian ITAT judgment concerns an appeal filed by the Principal Commissioner of Income Tax (Central), Bhopal, against an order passed by M/s Agroha Ornaments. The appeal pertains to an order dated 27.12.2018, passed by the Assistant Commissioner of Income Tax (Central), Gwalior Station, Bhopal. The respondent-assessee is a resident of Gwalior. The primary issue before the High Court was the territorial jurisdiction to hear the appeal, with the registry raising an objection. The appellant argued that the Commissioner IT at Bhopal has territorial jurisdiction over the entire Madhya Pradesh in search cases, making the appeal maintainable before the principal bench at Jabalpur.

What were the issues?

1. Whether the High Court of Madhya Pradesh at Jabalpur has territorial jurisdiction to hear the Income Tax Appeal, considering the Assessing Officer is located in Gwalior and the assessee is a resident of Gwalior, or if the appeal should be filed before the High Court of Gwalior? (Question of law and fact, concerning territorial jurisdiction under the Income Tax Act, 1961). Assessee's Contention (Implicitly argued by the appellant's counsel): The Commissioner IT at Bhopal has territorial jurisdiction over the entire Madhya Pradesh in search cases, thus the appeal is maintainable before the principal bench at Jabalpur. Revenue's Contention (Implicitly argued by the registry's objection and the Court's decision): The territorial jurisdiction for appeals against ITAT decisions lies with the High Court within whose jurisdiction the Assessing Officer who passed the assessment order is situated, as per the law laid down in Principal Commissioner of Income Tax Vs. M/s. ABC Papers Ltd.

Which sections of the Income-tax Act were involved?

Section 127

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF MADHYA PRADESH AT JABALPUR BEFORE HON'BLE SHRI JUSTICE VIVEK RUSIA & HON'BLE SHRI JUSTICE PRADEEP MITTAL ON THE 25th OF FEBRUARY, 2026 INCOME TAX APPEAL No. 2 of 2026 THE PRI. COMMISSIONER OF INCOME TAX (CENTRAL) BHOPAL Versus M/S AGROHA ORNAMENTS Appearance: Shri Siddharth Sharma- Advocate and Shri Harpreet Singh Gupta - Advocate for the appellant. Shri Sumit Nema- Senior Advocate with Shri Ayush Gupta - Advocate as Amicus Curiae. ORDER Per: Justice Vivek Rusia Heard on the objection about the territorial jurisdiction of this Court, raised by the registry of this court. 2. Shri Sharma learned counsel submits that in the cases of the search, the Commissioner IT at Bhopal has territorial jurisdiction over the entire Madhya Pradesh, hence this ITA is maintainable before the principal bench at Jabalpur. 3. In this matter, the Assistant Commissioner of Income Tax (Central) Gwalior Station, Bhopal, being the Assessing Officer, has passed the order dated 27.12.2018 (Annexure A-1); and the respondent/assessee is a resident 1 ITA-2-2026 NEUTRAL CITATION NO. 2026:MPHC-JBP:16132 Signed by: TARUN KUMAR SALUNKE Signing time: 05-03-2026 16:51:16 Signature Not Verified

(VIVEK RUSIA) JUDGE (PRADEEP MITTAL) JUDGE of Gwalior, therefore, in view of the law laid down in the case of Principal Commissioner of Income Tax Vs. M/s. ABC Papers Ltd reported in (2022)9 SCC 1, this ITA is liable to be filed before the High Court of Gwalior. The relevant paragraph-33 is reproduced as under:- "33. In conclusion, we hold that appeals against every decision of the ITAT shall lie only before the High Court within whose jurisdiction the Assessing Officer who passed the assessment order is situated. Even if the case or cases of an assessee are transferred in exercise of power under Section 127 of the Act, the High Court within whose jurisdiction the Assessing Officer has passed the order, shall continue to exercise the jurisdiction of appeal. This principle is applicable even if the transfer is under Section 127 for the same assessment year(s)." 3. In view of the above, this ITA is maintainable before the High Court of Madhya Pradesh bench at Gwalior. Registry of this court is directed to transfer this ITA to the Gwalior Bench and proceed accordingly. tarun

2 ITA-2-2026 NEUTRAL CITATION NO. 2026:MPHC-JBP:16132 Signed by: TARUN KUMAR SALUNKE Signing time: 05-03-2026 16:51:16 Signature Not Verified

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