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

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ITA/1471/2018HC DelhiDLHC01422772201801 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 appeals. This decision is 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 decisions of the ITAT lie only before the High Court within whose jurisdiction the Assessing Officer who passed the assessment order is situated, irrespective of any transfer of cases under Section 127 of the Income Tax Act. Consequently, the Delhi High Court disposed of the appeals, granting the appellant liberty to file them in a court with the correct territorial jurisdiction within twelve weeks. The court clarified that all parties' rights and contentions are left open.

What were the facts?

The appeals were filed by LG Electronics India Pvt Ltd (the assessee) against orders passed by the Additional Commissioner of Income Tax. The Assessing Officer who passed the original assessment orders was based in Noida. The assessee's appeals were filed before the Delhi High Court. The procedural history involves the filing of these appeals, ITA 1470/2018 and ITA 1471/2018, before the Delhi High Court.

What were the issues?

1. Whether the Delhi High Court has the territorial jurisdiction to hear and decide the appeals, given that the Assessing Officer who passed the assessment orders is based in Noida? (Question of law turning on territorial jurisdiction). The assessee, through its counsel, presented the appeals. The revenue, represented by its counsel, appeared. The core issue before the Delhi High Court was the determination of its territorial jurisdiction to entertain the appeals, based on the location of the Assessing Officer who passed the original assessment orders. The court relied on a recent Supreme Court judgment to decide this jurisdictional question.

Which sections of the Income-tax Act were involved?

Section 127

AI-generated summary — verify with the full judgment below

$~A-44 & 45 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 1470/2018 LG ELECTRONICS INDIA PVT LTD ..... Appellant Mr.Aditya Vohra, Advocate. versus ADDITIONAL COMMISSIONER OF INCOME TAX, ..... Respondent Mr.A.Renganath, Advocate for Mr.Ajit Sharma, Sr.Standing Counsel. + ITA 1471/2018 LG ELECTRONICS INDIA PVT LTD ..... Appellant Mr.Aditya Vohra, Advocate. versus ADDITIONAL COMMISSIONER OF INCOME TAX ..... Respondent Mr.A.Renganath, Advocate for Mr.Ajit Sharma, Sr.Standing Counsel. CORAM: HON'BLE MR. JUSTICE MANMOHAN HON'BLE MS. JUSTICE MANMEET PRITAM SINGH ARORA O R D E R % 01.11.2022 Learned counsel for the appellant admits that the Assessing Officer who had passed the assessment orders is based in Noida. Recently, 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 appellant 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 1, 2022 TS

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