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

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ITA/281/2022HC DelhiDLHC01337588202124 August 2022Bench: HON'BLE MR. JUSTICE MANMOHAN,HON'BLE MS. JUSTICE MANMEET PRITAM SINGH ARORA2 pages
AI SummaryDismissed

What did the High Court hold?

The Delhi High Court held that it does not have the territorial jurisdiction to entertain the present appeal. This decision is based on the Supreme Court's judgment in Pr. Commissioner of Income Tax – I, Chandigarh vs. ABC Papers Limited. The Supreme Court ruled 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 remains applicable even if the assessee's cases are transferred under Section 127 of the Act, including transfers for the same assessment year(s). Consequently, the appeal filed before the Delhi High Court was dismissed for want of territorial jurisdiction. The appellant was granted liberty to file the appeal in the appropriate court having territorial jurisdiction.

What were the facts?

The Principal Commissioner of Income Tax - 1, Chandigarh (Revenue) filed an Income Tax Appeal before the Delhi High Court challenging an order dated 25th November, 2019 passed by the Income Tax Appellate Tribunal (ITAT) in ITA No. 2822/Del./2015 for Assessment Year 2004-05. The assessment order in this case was originally passed by the Assessing Officer in Chandigarh. Subsequently, the Central Board of Direct Taxes (CBDT) transferred the appeal from Chandigarh to the Commissioner of Income Tax (Appeals), Delhi.

What were the issues?

1. Whether the High Court has territorial jurisdiction to entertain an appeal against an ITAT order when the Assessing Officer who passed the original assessment order is situated outside the High Court's jurisdiction, even if the assessee's cases were transferred under Section 127 of the Income Tax Act, 1961. Assessee's Contention: The judgment does not record any specific contentions made by the assessee. The High Court's decision is based on a Supreme Court precedent. Revenue's Contention: The Revenue, by filing the appeal, implicitly argues that the Delhi High Court has jurisdiction. However, the judgment relies on the Supreme Court's ruling which addresses the jurisdictional aspect.

Which sections of the Income-tax Act were involved?

Section 127

AI-generated summary — verify with the full judgment below

$~39 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 281/2022 THE PR. COMMISSIONER OF INCOME TAX -1 ..... Appellant Through: Mr.Ruchir Bhatia, Sr.Standing Counsel for the Revenue with Ms.Mansie Jain, Advocate. versus ESCORTS HEART INSTITUTE AND RESEARCH CENTRE LTD. ..... Respondent Through: Mr.Simran Mehta, Advocate. CORAM: HON'BLE MR. JUSTICE MANMOHAN HON'BLE MS. JUSTICE MANMEET PRITAM SINGH ARORA O R D E R % 24.08.2022 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. 2822/Del./2015 for the Assessment Year 2004-05. A perusal of the paper book reveals that in the present case, the assessment order had been passed by the Assessing Officer based in Chandigarh. Thereafter, the appeal was transferred by the CBDT to CIT(A), Delhi from Chandigarh. Recently, the Supreme Court in the case of Pr. Commissioner of Income Tax – I, Chandigarh vs. ABC Papers Limited, Civil Appeal No.4252/2022 has held as under:- This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 15/06/2026 at 02:29:45

“33. 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).” In view of the aforesaid judgment, this Court does not have the territorial jurisdiction to entertain the present appeal. Accordingly, the same along with pending application is dismissed with liberty to the appellant to file an appeal in accordance with law in a court having territorial jurisdiction. MANMOHAN, J MANMEET PRITAM SINGH ARORA, J AUGUST 24, 2022/KA This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 15/06/2026 at 02:29:45

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