ASSTT. COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-1, KANPUR vs. RAGHUNATH INTERNATIONAL LIMITED, NEW DELHI

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ITA 376/LKW/2023Status: DisposedITAT Lucknow27 September 2024AY 2005-06Bench: SHRI. SUDHANSHU SRIVASTAVA (Judicial Member), SHRI G.D. PADMAHSHALI (Accountant Member)4 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the appeal was not admissible before the Lucknow Bench. Following the Supreme Court's decision in Principal Commissioner of Income-tax vs. ABC Papers Ltd., the Tribunal ruled that appeals must be filed before the High Court (and by extension, the ITAT) within whose jurisdiction the Assessing Officer who passed the assessment order is situated.

What were the facts?

The Revenue filed an appeal before the ITAT Lucknow Bench against an order of the CIT(A). The assessee contended that the appeal should have been filed before the ITAT Delhi Bench, as the Assessing Officer who passed the assessment order was located in Delhi.

What were the issues?

The primary issue was the correct jurisdictional bench for filing an appeal before the ITAT, considering the location of the Assessing Officer who passed the original assessment order.

Which sections of the Income-tax Act were involved?

Section 127

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, LUCKNOW BENCH “A”, LUCKNOW

Before: SHRI. SUDHANSHU SRIVASTAVA & SHRI G.D. PADMAHSHALI

For Appellant: Smt. Namita S. Pandey, CIT (DR)
For Respondent: Shri Ashish Jaiswal, Advocate

This appeal has been preferred by the Revenue against the order dated 27.03.2024 passed by the learned Commissioner of Income Tax (Appeals) (hereinafter called ‘the ld. CIT(A)’) for assessment year 2005-06.

2.

At the outset, the ld. authorized representative for the assessee submitted that in the case of the present assessee, the assessment order was passed by the Dy. Commissioner of Income Tax, Circle 15(1), New Delhi, who is the jurisdictional Assessing Officer of the assessee. Since the jurisdictional Assessing Officer of the assessee falls under Delhi, the appeal against the impugned order of the ld. CIT(A) ought to have been filed by the Revenue in ITAT, Delhi and not in ITAT Lucknow. In this regard, he placed reliance on the decision of the Hon'ble Supreme Court in the case of Principal Commissioner of Income- tax vs. ABC Papers Ltd., 141 taxmann.com 32 (SC) and submitted that the appeal of the Revenue is liable to be dismissed as un-admitted.

3.

The ld. D.R. did not oppose the aforesaid submissions of the ld. authorized representative for the assessee.

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 un- admitted 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.

6.

In the result, the appeal of the Revenue stands dismissed.

Order pronounced in the open Court on 27/09/2024.

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