DEPUTY COMMISSIONER OF INCOME TAX, EXEMPTION, BHOPAL, BHOPAL vs. CHHATTISGARH NIJI VISHWAVIDYALAYA VINIYAMAK AAYOG, RAIPUR

ITA 558/IND/2024Status: DisposedITAT Indore03 April 2025AY 2017-184 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the appeal is not maintainable before the ITAT, Indore Bench. The established practice, supported by Explanation 4 to the Standing Order and the Supreme Court's decision in PCIT Vs ABC Paper Ltd., is that the situs of the Assessing Officer determines the jurisdiction of the ITAT Bench. Even if the jurisdiction of the Raipur AO was subsequently merged with the Bhopal AO, the proper course for the Bhopal AO would be to file the appeal before the ITAT Bench that exercises jurisdiction over Raipur. The Tribunal dismissed the appeal as not maintainable, granting the Revenue leave to institute the appeal before the appropriate bench with jurisdiction over the AO who framed the impugned assessment. Liberty was also granted to the Revenue to file a Miscellaneous Application for restoration if they believed the appeal was maintainable before the Indore Bench.

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 30.05.2024 passed by the CIT(A), Delhi. This order arose from an assessment order dated 16.12.2019 passed by the Exemption Circle, Raipur, under Section 143(3) of the Income-tax Act, 1961, for Assessment Year 2017-18. The assessee is Chhatisgarh Niji Vishwavidyalaya Viniyamak Aayog, Raipur. The ITAT Indore Bench raised a jurisdictional issue, noting that Raipur falls outside its territorial jurisdiction. The Revenue, through the CIT-DR, submitted a report claiming that the Raipur AO's post was abolished and jurisdiction merged with Bhopal AO w.e.f. 13.08.2020, and argued that the Supreme Court's decision in ABC Paper Ltd. pertains to High Court jurisdiction, not ITAT Benches.

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 situated in Raipur, which is outside the territorial jurisdiction of the Indore Bench, considering Explanation 4 to Standing Order dated 01/10/1997 and the decision in PCIT Vs ABC Paper Ltd. (2022) 447 ITR 1 (SC). Assessee's contention: The assessee supported the conclusion that the ITAT, Indore Bench lacks jurisdiction. Revenue's contention: The Revenue argued that the situs of the AO at the time of assessment is not determinative of ITAT jurisdiction, especially after the abolition of the Raipur AO's post and merger of jurisdiction with Bhopal. They relied on an AO's report and distinguished the ABC Paper Ltd. judgment as relating to High Court jurisdiction.

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

For Respondent: Shri Ram Kumar Yadav, CIT-DR, Shri R.B. Doshi, AR

Hearing: 03.04.2025Pronounced: 03.04.2025

आदेश/ O R D E R

Per B.M. Biyani, AM:

This appeal has been filed by revenue challenging the order of first-appeal dated 30.05.2024 passed by Ld. Commissioner of Income-tax, National Faceless Appeal Centre, Delhi [“CIT(A)”] which in turn arise of assessment- order dated 16.12.2019 u/s 143(3) of the Income-tax Act, 1961 [“Act”] passed by Exemption Circle, Raipur [“AO”] for Assessment-Year [“AY”] 2017- 18.

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.

Today, Ld. DR for revenue has filed AO’s report dated 17.02.2025 claiming that although the assessment-order was passed by AO located at Raipur on 16.12.2019 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. Copy of Notification is also filed with AO’s report. It is further submitted by AO that ABC Paper (supra), in the Hon’ble Supreme Court has defined the jurisdiction of High Court and not the jurisdiction of ITAT Benches. Ld. DR only relied upon this report of AO and left the matter for the wisdom of Bench.

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 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.

Ld. AR for assessee also supported the above conclusions.

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 them before an appropriate bench of the Tribunal which in law exercises jurisdiction over the AO who framed the impugned assessment for Page 3 of 4 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.

Resultantly, this appeal is dismissed.

Order pronounced in open court immediately after conclusion of hearing on 03/04/2025 and subsequently reduced in writing.

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