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

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ITA/118/2026HC KarnatakaKAHC01048908202623 July 2026Bench: S.G.PANDIT,K.MANMADHA RAO5 pages
AI SummaryDismissed

What did the High Court hold?

The High Court of Karnataka held that the jurisdiction for filing an appeal under Section 260A 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. This principle remains applicable even if the assessee's cases are transferred under Section 127 of the Act. The Court cited the Supreme Court's decision in Principal Commissioner of Income-Tax vs. ABC Papers Ltd., which clearly states 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. Since the assessment order in this case was passed by the Assistant Commissioner of Income Tax, Central Circle-3, Coimbatore, the High Court of Karnataka does not have jurisdiction. The appeal was accordingly 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 Income Tax Appeal (ITA) 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 Bench, in ITA No. 213/CHNY/2025, pertaining to Assessment Year 2014-15. The respondent is Mr. P Palanisamy (Assessee). The Registry of the High Court raised objections regarding the maintainability of the appeal before it. 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.

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 Assessing Officer who passed the assessment order is situated outside its territorial jurisdiction, even if the assessee is located within its jurisdiction and the ITAT order was passed by a bench within its jurisdiction. The Revenue contended that the appeal was filed before the Karnataka High Court because the assessee is located in Bengaluru, and the assessment took place in Coimbatore following a search and subsequent centralization. The Revenue relied on the Supreme Court's decision in Principal Commissioner of Income-Tax vs. ABC Papers Ltd. The judgment does not record any specific arguments from the Assessee.

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. 118 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

Digitally signed by NANJUNDACHARI Location: High Court of Karnataka HC-KAR THIS ITA IS FILED UNDER SECTION 260 A OF THE INCOME TAX ACT, 1961, PRAYING TO SET ASIDE THE ORDERS PASSED BY THE INCOME TAX APPELLATE TRIBUNAL, BENGALURU IN ITA NO.213/CHNY/2025 DATED.09.02.2026 FOR ASSESSMENT YEAR 2014-15 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.213/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., HC-KAR [(2022) 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, HC-KAR Central Circle-3, Coimbatore. Hence, this Court would not 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 List No.: 1 Sl No.: 10

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