THE PR. COMMISSIONER OF INCOME TAX -1 vs. ESCORTS HEART INSTITUTE AND RESEARCH CENTRE LTD.

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ITA/418/2022HC DelhiDLHC01043684202120 October 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 appeal. This decision is based on the Supreme Court's ruling in Pr. Commissioner of Income Tax – I, Chandigarh vs. ABC Papers Limited, which states that appeals against ITAT decisions 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 have been transferred under Section 127 of the Income Tax Act. Consequently, the Court disposed of the appeal, granting the appellant liberty to file the appeal in a court with the correct territorial jurisdiction within twelve weeks. The rights and contentions of all parties were left open.

What were the facts?

The Principal Commissioner of Income Tax - 1 (Appellant) filed an Income Tax Appeal before the Delhi High Court challenging an order dated November 25, 2019, passed by the Income Tax Appellate Tribunal (ITAT) in ITA No. 2823/Del./2015 for Assessment Year 2005-06. The respondent is Escorts Heart Institute and Research Centre Ltd. The Appellant's counsel admitted that the Assessing Officer who passed the original assessment order was based in Chandigarh. The appeal was filed before the Delhi High Court.

What were the issues?

1. Does the Delhi High Court have territorial jurisdiction to hear and decide the present appeal, given that the Assessing Officer who passed the assessment order is situated in Chandigarh? (Question of law) The Appellant argued that the appeal was filed before the Delhi High Court. The Revenue relied on the Supreme Court's decision in Pr. Commissioner of Income Tax – I, Chandigarh vs. ABC Papers Limited, 2022 SCC OnLine SC 1036, which clarifies the territorial jurisdiction for appeals against ITAT orders.

Which sections of the Income-tax Act were involved?

Section 127

AI-generated summary — verify with the full judgment below

$~55 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 418/2022 & CM APPL.45643/2022 THE PR. COMMISSIONER OF INCOME TAX -1 ..... Appellant Through: Mr. Ruchir Bhatia and Ms. Mansie Jain, Advocates versus ESCORTS HEART INSTITUTE AND RESEARCH CENTRE LTD. ..... Respondent Through: Ms. Simran Mehta, Advocate CORAM: HON'BLE MR. JUSTICE MANMOHAN HON'BLE MS. JUSTICE MANMEET PRITAM SINGH ARORA O R D E R % 20.10.2022 Present Income Tax Appeal has been filed challenging the order dated 25th November, 2019 passed by the Income Tax Appellate Tribunal (‘ITAT’) in ITA No.2823/Del./2015 for the Assessment Year (‘AY’) 2005- 06. Learned counsel for the Appellant admits that the Assessing Officer, who had passed the assessment order is based in Chandigarh. 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 appeal. Accordingly, the present appeal alongwith pending application is disposed of with liberty to the appellant to file the present appeal 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 OCTOBER 20, 2022 AS

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