The Delhi Bench of Income Tax Appellate Tribunal ( ITAT ) dismissed the revenue’s appeal for lack of jurisdiction and granted liberty to the revenue to approach the appropriate bench.
The Revenue-appellant filed an appeal for the Assessment Year (AY) 2006-07, challenging the order of the Commissioner of Income Tax (Appeals)CIT(A), in favor of SICPA India Pvt. Ltd., the respondent-assessee.
The issue began with an assessment by the Deputy Commissioner of Income Tax(DCIT), Kolkata, under Section 143(3) of the Income-tax Act, 1961. Initially, the total income of the assessee was determined at ₹8,55,94,450 on December 29, 2009.
The assessee then appealed to the CIT(A), Kolkata, which partially allowed the appeal on January 12, 2012. The revenue appealed, but the Kolkata Tribunal dismissed it on December 4, 2015.
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Later, the DCIT,Kolkata, issued a notice to reopen the assessment for AY 2006-07. After reassessing, the DCIT increased the total income to ₹15,83,76,330 on March 7, 2014. The assessee then appealed the reassessment to the CIT(A), New Delhi, who gave significant relief to the assessee, especially concerning the deduction under Section 80IC. However, the revenue disagreed and appealed to the Delhi Tribunal.
The tribunal, after reviewing the case, concluded that it did not have jurisdiction to hear the appeal. This decision was based on the Supreme Court ruling in ABC Papers Ltd., which stated that the jurisdiction depends on where the Assessing Officer(AO) is located. Since the DCIT, Kolkata, had passed the assessment and reassessment orders, the tribunal could not handle the appeal.
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The two member bench comprising Saktijit Dey(Vice President) and M.Balaganesh(Accountant Member)dismissed the appeal as not maintainable and allowed the revenue to file a fresh appeal before the appropriate bench.
In conclusion, the revenue’s appeal was dismissed due to jurisdictional issues.
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