LG ELECTRONICS INDIA PVT LTD vs. ADDITIONAL COMMISSIONER OF INCOME-TAX

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ITA/540/2019HC DelhiDLHC01024305201924 November 2022Author: HON'BLE MR. JUSTICE MANMOHAN,HON'BLE MS. JUSTICE MANMEET PRITAM SINGH ARORA2 pages
AI SummaryRemanded

What did the High Court hold?

The Delhi High Court held that it has no territorial jurisdiction to hear and decide the present appeal. This decision was based on the Supreme Court's ruling in Pr. Commissioner of Income Tax – I, Chandigarh vs. ABC Papers Limited, 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. The Court clarified that this principle applies even if the assessee's cases have been transferred under Section 127 of the Income Tax Act. Consequently, the appeal was disposed of, granting the appellant liberty to file the appeal in a court with the correct territorial jurisdiction within twelve weeks. The rights and contentions of all parties were left open.

What were the facts?

The appellant, LG Electronics India Pvt Ltd, filed an Income Tax Appeal (ITA No. 540/2019) before the Delhi High Court challenging an order passed by the Income Tax Appellate Tribunal (ITAT) dated 15th February, 2019, in ITA No.953/Del/2014 for Assessment Year 2009-10. The revenue was represented by the Additional Commissioner of Income-Tax. The appellant's counsel acknowledged that the Assessing Officer who passed the original assessment order was based in Noida. The High Court considered the Supreme Court's decision in Pr. Commissioner of Income Tax – I, Chandigarh vs. ABC Papers Limited.

What were the issues?

1. Whether the Delhi High Court has the territorial jurisdiction to hear and decide the present appeal, given that the Assessing Officer who passed the assessment order is situated in Noida, and not within the territorial jurisdiction of the Delhi High Court? (Question of law, turning on the interpretation of territorial jurisdiction for appeals against ITAT orders). Assessee's Contention: Not recorded in the judgment. Revenue's Contention: Not recorded in the judgment.

Which sections of the Income-tax Act were involved?

Section 127

AI-generated summary — verify with the full judgment below

$~17 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 540/2019 LG ELECTRONICS INDIA PVT LTD ..... Appellant Through: Mr. Aditya Vohra & Mr. Samarth Chaudhari, Advocates. versus ADDITIONAL COMMISSIONER OF INCOME- TAX ..... Respondent Through: Mr. Sunil Agarwal, Senior Standing Counsel for Revenue with Mr. Tushar Gupta, Jr. Standing Counsel & Mr. Utkarsh Tiwari, Advocate. CORAM: HON'BLE MR. JUSTICE MANMOHAN HON'BLE MS. JUSTICE MANMEET PRITAM SINGH ARORA O R D E R % 24.11.2022 Present Income Tax Appeal has been filed challenging the order passed by the Income Tax Appellate Tribunal (‘ITAT’) dated 15th February, 2019, in ITA No.953/Del/2014 for Assessment Year 2009-10. Learned counsel for the Appellant admits that the Assessing Officer, who had passed the assessment order is based in Noida. The Supreme Court in Pr. Commissioner of Income Tax – I, Chandigarh vs. ABC Papers Limited, 2022 SCC OnLine SC 1036 has held as under:- “38. 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).” Consequently, this Court has no territorial jurisdiction to hear and decide the present appeal. Accordingly, the present appeal is disposed of with liberty to the appellant to file the present appeal in a Court having territorial jurisdiction within twelve weeks. This Court clarifies that the rights and contentions of all the parties are left open MANMOHAN, J MANMEET PRITAM SINGH ARORA, J NOVEMBER 24, 2022/msh

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