LG ELECTRONICS INDIA PVT LTD vs. ADDITIONAL COMMISSIONER OF INCOME-TAX ( SPECIAL RANGE - 5 )

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ITA/533/2019HC DelhiDLHC01023903201904 November 2022Author: HON'BLE MR. JUSTICE MANMOHAN,HON'BLE MS. JUSTICE MANMEET PRITAM SINGH ARORA3 pages
AI SummaryRemanded

What did the High Court hold?

The Delhi High Court held that it had no territorial jurisdiction to hear and decide the present appeals. 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 were transferred under Section 127 of the Act. Consequently, the present appeals were disposed of with liberty granted to the appellants to file the appeals in a Court having the correct territorial jurisdiction within twelve weeks. The Court also clarified that the rights and contentions of all parties were left open.

What were the facts?

The appeals before the Delhi High Court concerned orders passed by the Income Tax Appellate Tribunal (ITAT) for various Assessment Years (AYs) between 2005-06 and 2009-10. The appellant in most of these appeals was the Principal Commissioner of Income Tax - 5, and the respondent was LG Electronics India Pvt. Ltd. One appeal was filed by LG Electronics India Pvt. Ltd. against the Additional Commissioner of Income-Tax. The core issue that arose for consideration was the territorial jurisdiction of the High Court to hear these appeals, given that the Assessing Officer who passed the original assessment orders was based in Noida.

What were the issues?

1. Whether the Delhi High Court has the territorial jurisdiction to hear the present appeals, given that the Assessing Officer who passed the assessment orders is situated in Noida, and not within the territorial jurisdiction of this Court? (Question of law turning on territorial jurisdiction and the implications of Section 127 of the Income Tax Act, 1961). Assessee's Contention (Revenue's argument in the context of jurisdiction): The Revenue argued that the High Court within whose jurisdiction the Assessing Officer who passed the assessment order is situated, shall continue to exercise the jurisdiction of appeal, even if the case was transferred under Section 127 of the Act. This principle was supported by the Supreme Court's decision in Pr. Commissioner of Income Tax – I, Chandigarh vs. ABC Papers Limited. Revenue's Contention (Assessee's argument in the context of jurisdiction): The judgment does not explicitly record arguments from the assessee (LG Electronics India Pvt. Ltd.) regarding territorial jurisdiction. However, the fact that the appeals were filed before the Delhi High Court implies an assertion of jurisdiction, which was then challenged by the Revenue.

Which sections of the Income-tax Act were involved?

Section 127

AI-generated summary — verify with the full judgment below

$~35 to 39 * IN THE HIGH COURT OF DELHI AT NEW DELHI ITA 26/2019 Mr.Ajit Sharma, Sr.Standing Counsel for Revenue with Mr.A.Renganath, Advocate. LG ELECTRONICS INDIA PVT. LTD ITA 38/2019 LG ELECTRONICS INDIA PVT. LTD ITA 846/2019 L.G. ELECTRONICS INDIA PVT. LTD.

ITA 533/2019 LG ELECTRONICS INDIA PVT LTD ..... Appellant ADDITIONAL COMMISSIONER OF INCOME-TAX ( SPECIAL RANGE - 5 ) Mr. Puneet Rai, Advocate with Ms. Adeeba Mujahid and Mr. Nikhil Jain, Advocates. ITA 726/2019 PR. COMMISSIONER OF INCOME TAX -5 ..... Appellant L.G. ELECTRONICS INDIA PVT. LTD CORAM: HON'BLE MR. JUSTICE MANMOHAN HON'BLE MS. JUSTICE MANMEET PRITAM SINGH ARORA O R D E R % 04.11.2022 Present Income Tax Appeals have been filed challenging the orders passed by the Income Tax Appellate Tribunal (for short ‘ITAT’) dated 18th July, 2018 in ITA No. 3612/Del./2017 for Assessment Year (for short ‘AY’) 2005-06 & ITA No. 3613/Del./2017 for AY 2006-07, order dated 15th February, 2019 in ITA No. 953/Del./2014 for AY 2009-10, and order dated 14th January, 2019 in ITA 6253/Del.2012 for AY 2008-09.

Learned counsel for the Appellant admits that the Assessing Officer, who had passed the assessment orders 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 appeals. Accordingly, the present appeals are disposed of with liberty to the appellants to file the present appeals 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 4, 2022 js

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