SAHARA INDIA vs. INCOME TAX APPELLATE TRIBUNAL DELHI & ORS.

The present writ petitions have been preferred against the common order dated 30.05.2025 [challenged in W.P.(C) 7484/2026, W.P.(C) 7485/2026, W.P.(C) 7491/2026 and W.P.(C) 7507/2026] and the order dated 20.11.2024 [challenged in W.P.(C) 7486/2026] passed by the Income Tax Appellate Tribunal, Bench “A”, New Delhi (‘hereinafter referred to as the Tribunal), whereby the appeals were rejected on the ground of lack of This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above.

A tabular chart containing the particulars of the order under challenge in each of the writ petitions is reproduced hereunder: “ Item No. Writ Petition No. Name Assessment Year Order of ITAT Serial No. in ITAT President’s Order dated 17.08.2006 Place of Assessment

Mr. Aditya Vohra, learned Counsel for the petitioners, submitted that the Tribunal has dismissed the appeals filed by the petitioners/assessees as well as the corresponding appeals filed by the Revenue, on the ground of lack of territorial jurisdiction.

He further submitted that the Tribunal has clearly fallen into an error of law so also of facts. In this regard, he submitted that in an identical fact-situation involving another company of the group, a Coordinate Bench of this Court, by its judgment dated 22.01.2026 in case of Sahara India Limited v. Income Tax Appellate Tribunal reported in 2026 183 taxmann.com 179 (Delhi), allowed the writ petition and while setting aside the impugned orders, remanded the matter and restored the appeals for hearing before Delhi Bench of the Tribunal. This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above.

Mr. Ruchir Bhatia, learned Senior Standing Counsel for the respondent, is not in a position to dispute the aforesaid position of fact and law.

In the case of Sahara India (supra), the Coordinate Bench of this Court had observed as under:

Faced with this situation, both the learned parties raised their vehement submissions that Income Tax Appellate Tribunal, Delhi Benches could very well decide the instant cases once they have transferred from Lucknow benches." (emphasis supplied)

According to us, the impugned order passed by the Delhi Bench of the Tribunal amounts to sitting over an administrative order of the President of the Tribunal and setting an administrative order at naught. Such order is in the teeth of the administrative powers of the President of the Tribunal. Once a matter stands transferred from one Bench to another for whatever reasons, except for the High Court or the court competent considering legality of said order, no statutory authority including the Tribunal can upturn such order of the President of the Tribunal. A Bench of the Tribunal of whatever This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above.

Reliance placed by the Delhi Bench of the Tribunal on the judgment rendered in the case of ABC Papers Ltd. (supra) is also misplaced inasmuch as a look at the above referred judgment of Hon'ble the Supreme Court clearly shows that the issue before Hon'ble the Supreme Court was as to whether appellate jurisdiction under Section 260A shifts after a case is transferred under Section 127 of the Act of 1961, where following the transfer of the assessee's cases under Section 127 of the Act of 1961, both the Punjab & Haryana High Court and the Delhi High Court had declined jurisdiction over appeals filed under Section 260A against orders of the Tribunal. While dealing with such case, Hon'ble the Supreme Court held that the High Court which has supervisory jurisdiction over the Assessing Officer who had passed the order impugned has the jurisdiction to entertain the writ petition or appeal under Section 260A of the Act of 1961. 20. Needless to mention that in the case before the Apex Court, the question involved was where would an appeal under Section 260A lie (before Punjab & Haryana High Court or before the Delhi High Court) and it was not a case of transfer of appeal by virtue of administrative order at all. We are therefore, of the view that the Delhi Bench of the Tribunal has erred.

Going by the principle laid down in the above referred case, may be the appeal under 260A against the order on merit passed by the Tribunal may lie before the Allahabad High Court, but so far as the appeals before the Tribunal are concerned, they were to be heard by the Tribunal, Principal Bench Delhi. Because the said judgment of Hon'ble the Supreme Court does not apply to the extant facts where the administrative power of the President (if any) were in question.

We have asked a question to ourselves as well, in light of the said judgment of the Apex Court as to what would happen to the writ petition in hands. Having pondered over the issue we hold that since the question before us pertains to the legality or This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above.

Though, we are of the view that approach of the Tribunal, Delhi Bench in dismissing the appeals and directing the assessees and the department to file fresh appeals before Lucknow Bench of the Tribunal is erroneous but still we feel that even if the Delhi Bench was of the view that it lacked the territorial jurisdiction, it ought to have placed the matters before the President for passing appropriate orders for transferring these cases to Lucknow. This kind of practice showcases the Tribunal's overzealousness of disposing more cases.

We are informed that these (13 appeals) are not the only appeals, which Delhi Bench of the Tribunal has dismissed, there are many more. Ironically, by way of impugned order dated 20.11.2024, the Delhi Bench has been able to reduce its pendency by a number of cases but at the same time it has led to an automatic increase at Lucknow Bench and the Department & the assessee have been burdened with the onerous task of instituting fresh appeals before the Lucknow Bench, though otherwise not required.

We, therefore, set aside all the orders impugned in these petitions and restore the matters back to their original number to the dockets of the Delhi Bench of the Tribunal, to be decided on merits.

We are conscious of the fact that more than 200 appeals were transferred from the Lucknow Bench of the Tribunal to Delhi Bench of the Tribunal, by the order(s) of the President passed in 2006. Consequent to the order(s) of like nature passed by the Tribunal, the concerned parties might have filed appeals/cross-objections before the Lucknow Bench. If that be so, as a sequel to restoration of the appeals, hearing of such appeals, which have been filed at Lucknow Bench shall remain deferred. It is held that it is only the Delhi Bench of the Tribunal, This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above.

Following the reasoning given in the aforesaid judgment, the present writ petitions are also allowed. Consequently, the impugned order(s) passed by the Tribunal are set aside and the appeals are restored to the dockets of the Delhi Bench of the Tribunal to be decided in accordance with law.

We make it clear that, consequent to the impugned order of the Tribunal, if the parties have filed any appeals and/or cross objections before the Lucknow Bench of the Tribunal, the hearing of such appeals and/or cross objections before the Lucknow Bench shall be deferred and those appeals and/or cross objections shall be transferred to the Delhi Bench of the Tribunal. The appeals shall thereafter be heard and decided by the Delhi Bench in accordance with law. DINESH MEHTA, J. RAJNEESH KUMAR GUPTA, J. JULY 13, 2026/MR This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above.