DEPUTY COMMISSIONER OF INCOME TAX, EXEMPTION, BHOPAL, BHOPAL vs. GOPAL LALJI MAHARAJ TRUST , JABALPUR

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ITA 295/IND/2024Status: DisposedITAT Indore07 April 2025AY 2017-184 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the appeal is not maintainable before the ITAT, Indore Bench. The Tribunal reasoned that it is a settled approach that the AO's situs determines the jurisdiction of the ITAT Bench, as per Explanation 4 to Standing Order dated 01/10/1997 and the decision of the Hon'ble Apex Court in PCIT Vs ABC Paper Ltd. [2022] 447 ITR 1 (SC). Since the ITAT, Indore Bench, does not have jurisdiction over Raipur, which was the situs of the AO who passed the original assessment order, the appeal is not maintainable. The Tribunal further clarified that even if the jurisdiction of the AO in Raipur was subsequently merged with the AO in Bhopal, the proper course for the AO in Bhopal would be to file the appeal before the appropriate Bench of the ITAT that holds jurisdiction over Raipur. Therefore, the Tribunal dismissed the appeal as not maintainable, granting liberty to the Revenue to institute it before an appropriate bench. The Tribunal also granted liberty to the Revenue to file a Miscellaneous Application for restoration if it still considers the appeal maintainable before the Indore Bench. The merits of the case were not commented upon.

What were the facts?

The Revenue, represented by the DCIT (Exemption), Bhopal, filed an appeal before the Income Tax Appellate Tribunal (ITAT), Indore Bench, challenging an order dated 07.02.2024 passed by the CIT(A), Delhi. This order arose from an assessment order dated 31.12.2019 passed by the Exemption Circle, Raipur, under Section 143(3) of the Income-tax Act, 1961, for Assessment Year 2017-18. The assessee is Gopal Lalji Maharaj Trust, Jabalpur. During earlier hearings, it emerged that the original assessment order was passed by an Assessing Officer (AO) located in Raipur. The ITAT, Indore Bench, questioned the maintainability of the appeal before it, given that it does not have jurisdiction over Raipur.

What were the issues?

1. Whether the ITAT, Indore Bench, has the jurisdiction to hear the appeal when the original assessment order was passed by an Assessing Officer located in Raipur. (Question of law and fact, concerning jurisdiction and procedural rules). Assessee's Contention: Not recorded. Revenue's Contention: The Revenue argued that although the assessment order was passed by the AO in Raipur on 31.12.2019, the post of ACIT/DCIT (Exemption), Raipur, was subsequently abolished by a Notification dated 05.10.2020, and its jurisdiction merged with ACIT/DCIT (Exemption), Bhopal, effective 13.08.2020. Therefore, the appeal filed before the Indore Bench should be treated as maintainable. The Revenue relied on the merger of jurisdiction to support its argument for maintainability before the Indore Bench.

Which sections of the Income-tax Act were involved?

Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, INDORE BENCH, INDORE

Before: SHRI B.M. BIYANI & SHRI PARESH M. JOSHI

For Respondent: Shri Ashish Porwal, Sr.-DR, Shri Sukesh Kumar Agrawal, AR
Hearing: 07.04.2025Pronounced: 07.04.2025

आदेश/ O R D E R

Per B.M. Biyani, AM:

1.

This appeal has been filed by revenue challenging the order of first-appeal dated 07.02.2024 passed by Ld. Commissioner of Income-tax, National Faceless Appeal Centre, Delhi [“CIT(A)”] which in turn arise of assessment- order dated 31.12.2019 u/s 143(3) of the Income-tax Act, 1961 [“Act”] passed by Exemption Circle, Raipur [“AO”] for Assessment-Year [“AY”] 2017- 18.

2.

It emerged during earlier hearings that the original assessment-order from which this appeal has arisen, had been passed by the Assessing Officer

Page 1 of 4 having situs at Raipur. Since ITAT, Indore Bench does not have jurisdiction over Raipur, this appeal is not maintainable in ITAT, Indore Bench as per Explanation 4 to Standing Order dated 01/10/1997 issued under Rule 4(1) of Income Tax Appellate Tribunal Rules, 1963 read with the decision of Hon’ble Apex Court in PCIT Vs ABC Paper Ltd. [2022] 447 ITR 1 (SC) / [2022] 141 taxmann.com 332 (SC). Hence, the revenue/appellant was questioned on this issue.

3.

Ld. DR for revenue/appellant submitted that although the assessment-order was passed by AO located at Raipur on 31.12.2019 but subsequently vide Notification dated 05.10.2020 issued by the office of JCIT(Exemption), Bhopal the post of ACIT/DCIT (Exemption), Raipur has been abolished and the jurisdiction has been merged in ACIT/DCIT (Exemption), Bhopal w.e.f. 13.08.2020. Therefore, the present appeal filed before this Bench of Indore may be treated as maintainable.

4.

We deliberated the issue in hearing. It is now a settled approach being adopted by all benches of ITAT across the country that the AO’s situs will determine the jurisdiction of ITAT, Bench. This is so because of Explanation 4 to Standing Order dated 01/10/1997 issued under Rule 4(1) of Income Tax

Page 2 of 4 Appellate Tribunal Rules, 1963 read with the decision of Hon’ble Apex Court in PCIT Vs ABC Paper Ltd. [2022] 447 ITR 1 (SC) / [2022] 141 taxmann.com 332 (SC). Since the ITAT, Indore Bench does not have jurisdiction over Raipur which was the situs of AO who passed original assessment-order, this appeal is not maintainable before ITAT, Indore Bench.

We feel that even if the jurisdiction of AO situated at Raipur had been subsequently merged into the AO situated at Bhopal, the proper course for the present AO situated at Bhopal shall be to file appeal before appropriate Bench of ITAT which holds jurisdiction over Raipur.

5.

Therefore, without offering our comments on merits of the case, we deem it fit to dismiss this appeal as 'not-maintainable' with a grant of leave to institute it before an appropriate bench of the Tribunal which in law exercises jurisdiction over the AO who framed the impugned assessment for the year under consideration. Liberty is, however, given to the revenue to come in M/A for restoration of this appeal if the revenue still considers that the present appeal is maintainable before ITAT, Indore Bench.

6.

Resultantly, this appeal is dismissed.

Order pronounced in open court immediately after conclusion of hearing on 07/04/2025 and subsequently reduced in writing.

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