In a recent decision the Supreme Court of India upheld the order of the High Court of Bombay and reiterated that the appeals against Income Tax Appellate Tribunal (ITAT) order will lie only before the High Court (HC order within whose jurisdiction the Assessing Officer is situated).
Feeling aggrieved and dissatisfied with the judgment and order passed by the High Court of Judicature at Bombay in Writ Petition (L) No. 3865/2020, by which the High Court has allowed the said writ petition preferred by the Assessee and has quashed and set aside the order passed by the President of the ITAT transferring four appeals from Bangalore Bench to Mumbai Bench, which was passed in exercise of powers under Rule 4 of the Income Tax Appellate Rules.
The Respondent in the present matter is MSPL Limited. The Revenue and others have preferred the present Special Leave Petition.
The Senior Advocate appearing on behalf of the assessee has drawn out attention to the recent decision of the Supreme Court in Principal Commissioner of Income Tax-I, Chandigarh vs. ABC Papers Limited, wherein it was observed and held by this Court that the seat of ITAT and/or jurisdiction of the concerned High Court would depend upon where the seat of Assessing Officer was and the Assessing Officer, who passed the order.
In the present case it was submitted that, the Assessing Officer passed order in Bangalore. Even the Commissioner of Income Tax (Appeals) (CIT(A)) also passed the order in Bangalore and therefore, as observed and held by the Supreme Court, the appeal against the Assessment order/the order passed by the CITA would only lie before the ITAT, Bangalore.
In ABC Papers Limited, it was held that the 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 Income Tax Act, the High Court within whose jurisdiction the Assessing Officer has passed the order, shall continue to exercise the jurisdiction of appeal.
The Coram comprising Justices MR Shah and CT Ravikumar observed that “In view of the above and for the reasons stated hereinabove, it cannot be said that the High Court has committed any error in setting aside the order passed by the President of the ITAT transferring the appeals from the Bangalore Bench to the Mumbai Bench. “
“We are in complete agreement with the view taken by the High court. Therefore, now the appeals will be heard by the ITAT, Bangalore Bench” the Bench concluded.
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