THE PR. COMMISSIONER OF INCOME TAX -1 vs. MR. P PALANISAMY

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ITA/112/2026HC KarnatakaKAHC01048907202623 July 2026Bench: S.G.PANDIT,K.MANMADHA RAO5 pages
AI SummaryDismissed

What did the High Court hold?

The High Court of Karnataka held 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 remains applicable even if the assessee's cases have been transferred under Section 127 of the Act or if the ITAT bench is located within a different High Court's jurisdiction. The Court relied on the Supreme Court's decision in Principal Commissioner of Income-Tax vs. ABC Papers Ltd. [(2022) 141 taxmann.com 332 (SC)]. In the present case, since the assessment order was passed by the Assistant Commissioner of Income Tax, Central Circle-3, Coimbatore, the High Court of Karnataka would not have jurisdiction. Therefore, the appeal was dismissed as not maintainable, with liberty granted to the Revenue to file the appeal before the appropriate jurisdictional High Court.

What were the facts?

The Principal Commissioner of Income Tax and the Assistant Commissioner of Income Tax (Appellants/Revenue) filed an appeal under Section 260A of the Income Tax Act, 1961, before the High Court of Karnataka. The appeal challenged an order dated 09.02.2026 passed by the Income Tax Appellate Tribunal (ITAT), Bengaluru, in ITA No.209/CHNY/2025, for the Assessment Year 2010-11. The Revenue sought to set aside the ITAT's order and confirm the orders of the Appellate Commissioner and the Assistant Commissioner. The Registry raised objections regarding the maintainability of the appeal before the High Court of Karnataka. The assessment order was passed by the Assistant Commissioner of Income Tax, Central Circle-3, Coimbatore, and the ITAT order was passed by the 'C' Bench, Chennai. The assessee, Mr. P Palanisamy, is located in Bengaluru.

What were the issues?

1. Whether the High Court of Karnataka has jurisdiction to entertain an appeal under Section 260A of the Income Tax Act, 1961, when the assessment order was passed by an Assessing Officer situated outside its territorial jurisdiction, even if the ITAT order was passed by a bench within its jurisdiction and the assessee is located within its jurisdiction. Assessee's Contention: The judgment does not record any specific contentions made by the assessee as the matter was decided on a preliminary objection raised by the Registry. Revenue's Contention: The Revenue argued that the appeal was filed considering the assessee's location in Bengaluru and that the assessment had taken place at Coimbatore due to centralization after a search. They implicitly contended that the High Court of Karnataka should have jurisdiction.

Which sections of the Income-tax Act were involved?

Section 260A,Section 127

AI-generated summary — verify with the full judgment below

HC-KAR IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 23RD DAY OF JULY, 2026 PRESENT THE HON'BLE MR. JUSTICE S.G.PANDIT AND THE HON'BLE DR. JUSTICE K.MANMADHA RAO INCOME TAX APPEAL NO. 112 OF 2026 BETWEEN:

1.

THE PR. COMMISSIONER OF INCOME TAX -1 5TH FLOOR, BMTC BUILDING 80 FEET ROAD, KORMANGALA BENGALURU-560095.

2.

THE ASST. COMMISSIONER OF INCOME TAX CENTRAL CIRCLE-3, COIMBATORE

PRESENT ADDRESS: THE INCOME TAX OFFICER WARD 1(2)(1), 2ND FLOOR, BMTC BUILDING, 80 FEET ROAD KORAMANGALA BENGALURU-560095. …APPELLANTS (BY SRI. RAVI RAJ Y. V., ADV.)

AND:

MR. P PALANISAMY 390, P P NILAYAM 9TH MAIN, I CROSS HAL II STAGE, INDIRA NAGAR, BENGALURU-560038 PAN NO.ADSPP9150F. …RESPONDENT

THIS ITA IS FILED UNDER SECTION 260 A OF THE INCOME TAX ACT, 1961, PRAYING TO ALLOW THE APPEAL AND SET ASIDE

Digitally signed by NANJUNDACHARI Location: High Court of Karnataka HC-KAR THE ORDERS PASSED BY THE INCOME TAX APPELLATE TRIBUNAL, BENGALURU IN ITA NO.209/CHNY/2025 DATED.09.02.2026 FOR ASSESSMENT YEAR 2010-11 ANNEXURE-A AND CONFIRM THE ORDER OF THE APPELLATE COMMISSIONER CONFIRMING THE ORDER PASSED BY THE ASST. COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-3, BENGALURU.

THIS APPEAL, COMING ON FOR ORDERS, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER:

CORAM: HON'BLE MR. JUSTICE S.G.PANDIT AND HON'BLE DR. JUSTICE K.MANMADHA RAO

ORAL JUDGMENT (PER: HON'BLE MR. JUSTICE S.G.PANDIT)

This appeal is filed under Section 260A of the Income Tax Act, 1961 questioning order dated 09.02.2026 in ITA.No.209/CHNY/2025 passed by the Income Tax Appellate Tribunal, ‘C’ Bench, Chennai (for short, ‘the Tribunal’).

2.

On scrutiny of the appeal, the Registry has raised objections with regard to maintainability of ITA before this Court.

HC-KAR

3.

Heard learned senior standing counsel Sri.Y.V.Raviraj for appellants/Revenue.

4.

Learned senior standing counsel Sri.Y.V.Raviraj submits that the present appeal was filed taking note of the fact that the assessee is at Bengaluru and further he submits that the assessment has taken place at Coimbatore, since the Centralization has taken place after consequent search.

5.

From the appeal papers, it is seen that the assessment order in respect of the respondent/assessee is passed by the Assistant Commissioner of Income Tax, Central Circle-3, Coimbatore and the ITAT Order is passed by the ‘C’ Bench, Chennai. Therefore, the Registry has rightly raised office objections with regard to maintainability of ITA before this Court.

6.

The Hon'ble Apex Court in the case of Principal Commissioner of Income-Tax vs. ABC Papers Ltd., [(2022)

HC-KAR 141 taxmann.com 332 (SC)] while considering the identical situation, at paragraph 33 has held as follows: “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 principles is applicable even if the transfer is under Section 127 for the same assessment year(s).”

The Hon'ble Apex Court in the above decision has made it clear that appeal 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.

7.

In the instant case, the assessment order is passed by the Assistant Commissioner of Income Tax, Central Circle-3, Coimbatore. Hence, this Court would not HC-KAR get jurisdiction. Accordingly, appeal stands dismissed as not maintainable, with liberty to file appeal before appropriate jurisdictional High Court.

Sd/- (S.G.PANDIT) JUDGE

Sd/- (DR.K.MANMADHA RAO) JUDGE

NC CT:bms

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