THE PR. COMMISSIONER OF INCOME TAX -5 vs. LG ELECTRONICS INDIA PVT. LTD

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ITA/38/2019HC DelhiDLHC01000848201804 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 (2022 SCC OnLine SC 1036). The Supreme Court 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 applies even if the assessee's cases were transferred under Section 127 of the Income Tax Act. Consequently, the present appeals were disposed of, granting the appellants liberty to file them in the appropriate court having 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 were filed by the Principal Commissioner of Income Tax - 5 (Revenue) and LG Electronics India Pvt. Ltd. (Assessee) challenging various orders passed by the Income Tax Appellate Tribunal (ITAT). The assessment years involved were 2005-06, 2006-07, 2008-09, and 2009-10. The Revenue's appeals challenged ITAT orders dated July 18, 2018, February 15, 2019, and January 14, 2019. The Assessee's appeal was also filed against an ITAT order. A key factual admission by the Revenue's counsel was that the Assessing Officer who passed the assessment orders was based in Noida.

What were the issues?

1. Whether this High Court has territorial jurisdiction to hear and decide the present appeals, given that the Assessing Officer who passed the assessment orders is situated in Noida, and the appeals are filed before the Delhi High Court? (Question of law, turning on the interpretation of territorial jurisdiction for appeals against ITAT orders). Assessee's Contention: Not explicitly recorded as the appeals were disposed of on the preliminary issue of jurisdiction. Revenue's Contention: The Revenue, through its counsel, admitted that the Assessing Officer was based in Noida. This admission formed the basis for the Court's decision on jurisdiction.

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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