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Facts
The Revenue appealed an order of the CIT(A) that quashed assessment proceedings. The Assessing Officer (AO) in Kolkata passed the assessment order, but the appeal was filed before the Lucknow Bench of the ITAT, which is outside the AO's jurisdiction.
Held
The Tribunal held that, following Supreme Court precedent, appeals must be filed before the ITAT Bench that has jurisdiction over the AO who passed the assessment order. Therefore, the appeal filed before the Lucknow Bench was not maintainable.
Key Issues
Whether the ITAT Bench has jurisdiction to hear an appeal when the Assessing Officer who passed the assessment order is located outside the territorial jurisdiction of that Bench.
Sections Cited
124(3), 143(3), 127
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, LUCKNOW BENCH “A”, LUCKNOW
Before: SHRI KUL BHARAT & SHRI ANADEE NATH MISSHRA
PER KUL BHARAT, VICE PRESIDENT.: This appeal, by the Revenue, is directed against the order of the Learned Commissioner of Income tax (Appeals)-4, Kanpur dated 04.10.2021, pertaining to the assessment year 2014-15. Revenue has raised the following grounds of appeal: -
1. On the facts and circumstances of the case and in law, Ld. CIT(A) erred in quashing the assessment proceedings and holding the assessment null and void on the technical ground by ignoring the statutory provisions of section 124(3) of the Income Tax Act, 1961.
2. That the above ground is without prejudice to each other and appellant craves leave to add or amend any other more ground of appeal as stated above as and when needs for doing so may arise.”
Page 2 of 4 2. In this case, the assessment order dated 28.12.2016 was passed u/s 143(3) of the Income Tax Act, 1961 (“Act”, for short) by ITO Ward-40(3), Kolkata; whereby the income of the assessee was determined at Rs.4,44,70,049/- as against the returned income of Rs.8,42,070/-. In the aforesaid assessment order an addition of Rs.4,36,27,979/- was made by the Assessing Officer against which the assessee filed appeal. Assessee’s appeal against the aforesaid assessment order was decided by the Ld. CIT(A) – IV, Kanpur. The present appeal has been filed by the assessee in Lucknow Bench of the Income Tax Appellate Tribunal (ITAT). After the appeal was initially heard in Lucknow Bench of ITAT, it was subsequently fixed for hearing for seeking clarification as to whether the Lucknow Bench of the ITAT had jurisdiction over the present appeal. The Ld. Counsel for the assessee pressed for this appeal to be decided on merits by Lucknow Bench of ITAT, insisting that the jurisdiction over the appeal was with Lucknow Bench of ITAT. The Ld. Counsel for the assessee remained steadfast in this contention despite reservation expressed by this Bench. The Ld. Departmental Representative left the matter regarding the jurisdiction of the appeal to the discretion of the Bench.
The identical issue came up before the Lucknow Bench of ITAT rendered in the case of ACIT Central Circle-1 vs M/s. Raghunath International Ltd in for A.Y. 2005-06 which was disposed of vide order dated 27.09.2024. On the issue of jurisdiction of Lucknow Bench of ITAT, the Co- ordinate Bench of this Tribunal Lucknow took the following view:-
Page 3 of 4 “4. We have heard the rival submissions and have also perused the record. We find that the jurisdictional Assessing Officer in the case of the present assessee falls under Delhi. The Hon'ble Supreme Court in the case of Principal Commissioner of Income-tax vs. ABC Papers Ltd. (supra), 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. 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). The relevant portion of the judgement of the Hon'ble Supreme Court is reproduced below: “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).”
5. Although the above judgment was rendered in the context of appeals against the orders of the ITAT, in our considered view, the same shall also apply to the cases where appeals are filed before the ITAT against the orders of the ld. First Appellate Authority. Accordingly, applying judgment of the Hon'ble Supreme Court (supra), we hold that the appeal of the Revenue in the present case is not admissible before this Bench of the Tribunal and, therefore, the same is dismissed as unadmitted with the liberty to the Department to file appeal before the correct Bench of the Tribunal within whose jurisdiction the Assessing Officer has passed the order.”
The facts of the present appeal before us are also in pari materia with the facts of the aforesaid case in the case of ACIT Central Circle-1 vs M/s. Raghunath International Ltd (supra). In the present case, the jurisdictional Assessing Officer who passed the assessment order is in Kolkata, which is outside the territorial jurisdiction of the Hon’ble Allahabad High Court as well as outside the territorial jurisdiction of Lucknow Bench of ITAT. Respectfully following the decision of the Co-ordinate Bench of ITAT Lucknow in the case of ACIT Central Circle-1 vs M/s. Raghunath International Ltd (supra), therefore, we hold that the appeal of the Revenue in the present case is not maintainable in Lucknow Bench of ITAT. In view of the foregoing, the appeal is dismissed in limine, as unadmitted, being not Page 4 of 4 maintainable in the territorial jurisdiction of the Lucknow Bench of ITAT. Revenue will be at liberty to file appeal before the appropriate Bench of ITAT falling under the jurisdiction of Hon’ble Calcutta High Court.
In the result, the appeal of the Revenue is dismissed for statistical purposes. Order pronounced in the open Court on 31/10/2025.