PR. COMMISSIONER OF INCOME TAX -5 vs. L.G. ELECTRONICS INDIA PVT. LTD

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ITA/726/2019HC DelhiDLHC01032361201904 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 lacked the 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 acknowledged that the Assessing Officer in this case was based in Noida, which falls outside the territorial jurisdiction of the Delhi High Court. Consequently, the 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 clarified that all rights and contentions of the parties were left open.

What were the facts?

The appeals before the Delhi High Court involved LG Electronics India Pvt. Ltd. as the respondent/appellant and the Principal Commissioner of Income Tax - 5 as the appellant/respondent. The appeals challenged various orders passed by the Income Tax Appellate Tribunal (ITAT) for Assessment Years 2005-06, 2006-07, 2008-09, and 2009-10. The core issue that arose was the territorial jurisdiction of the High Court to hear these appeals. It was admitted 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 appeals against the orders of the ITAT when the Assessing Officer who passed the assessment order is situated outside the territorial jurisdiction of the Delhi High Court. This question turns on the interpretation of the territorial jurisdiction for appeals against ITAT orders. The Assessee (LG Electronics India Pvt. Ltd.) contended that the appeals should be heard by the High Court within whose jurisdiction the Assessing Officer is situated, as per the Supreme Court's decision in Pr. Commissioner of Income Tax – I, Chandigarh vs. ABC Papers Limited. The Revenue (Principal Commissioner of Income Tax - 5) did not appear to contest this point, and the Court proceeded based on the admitted fact and the Supreme Court's ruling.

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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