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

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ITA/26/2019HC DelhiDLHC01000708201804 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, following the Supreme Court's decision in Pr. Commissioner of Income Tax – I, Chandigarh vs. ABC Papers Limited, appeals against ITAT decisions lie only before the High Court within whose jurisdiction the Assessing Officer who passed the assessment order is situated. Even if an assessee's case is transferred under Section 127 of the Act, the jurisdiction remains with the High Court where the original Assessing Officer passed the order. Consequently, the Delhi High Court determined it had no territorial jurisdiction to hear and decide the present appeals. The appeals were disposed of with liberty to the appellants to file them in the appropriate court within twelve weeks, with all rights and contentions of the parties left open.

What were the facts?

The appeals before the Delhi High Court challenge orders passed by the Income Tax Appellate Tribunal (ITAT) for various Assessment Years (AYs) between 2005-06 and 2009-10. The appellant is the Principal Commissioner of Income Tax - 5, and the respondent is LG Electronics India Pvt. Ltd. The Assessing Officer who passed the original assessment orders is located in Noida. The core issue revolves around the territorial jurisdiction of the High Court to hear these appeals.

What were the issues?

1. Whether the High Court has territorial jurisdiction to hear the appeals when the Assessing Officer who passed the assessment orders is situated outside the jurisdiction of this Court, as per Section 260A of the Income Tax Act, 1961. The Revenue contends that the jurisdiction lies with the High Court where the Assessing Officer is situated. The Assessee's arguments are not recorded in this portion of the judgment. The Supreme Court's decision in Pr. Commissioner of Income Tax – I, Chandigarh vs. ABC Papers Limited is central to this determination.

Which sections of the Income-tax Act were involved?

Section 260A,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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