M/S. SAHARA INDIA COMMERCIAL CORPORATION LTD.,KOLKATA V. DCIT, NEW DELHI

CO 47/DEL/2015

AI Insights

The case involves multiple appeals and cross objections by both the Department of Income Tax and M/s. Sahara India Commercial Corporation Ltd. concerning various assessment years. The primary legal issue was the territorial jurisdiction of the Delhi benches of the Income Tax Appellate Tribunal to hear these cases, as the assessments were originally conducted in Kolkata. The tribunal referenced a standing order and a Supreme Court decision to conclude that the Delhi benches did not have the jurisdiction to decide on these matters, leading to the dismissal of all appeals and cross objections. Hello World

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 40650 (ITAT-DELHI)
• Appeal Type: Cross Objection
• Pronouncement Date: 29-01-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 1991-1992
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SANJEEV GUPTA; SARVESH SRIVASTAVA
• Assessee Lawyers: SANJEEV KAUSHAL
• Keywords: Territorial jurisdiction; Assessment Order; Income Tax; Cross appeals; Income tax appellate tribunal
• Section: 143(3); 148; 144; 251; 263; 142(2A); 271(1)(c)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH: ‘A’ NEW DELHI BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SHRI AVDHESH KUMAR MISHRA, ACCOUNTANT MEMBER ITA No.2734/Del/2014 & C.O. No.47/Del/2015 Assessment Year: 1991-92 With ITA No.41/Lkw/2002 & C.O. No.24/Lkw/2005 Assessment Year: 1994-95 With ITA No.705/Lkw/2002 & C.O. No.69/Lkw/2005 Assessment Year: 1995-96 With ITA No.595/Alld/1999 & C.O. No.29/Alld/1999 Assessment Year: 1995-96 With ITA No.706/Lkw/2002 & C.O. No.139/Lkw/2004 Assessment Year: 1996-97 With ITA No.132/Lkw/2000 & C.O. No. 5/Lkw/2002 Assessment Year: 1996-97 With ITA No.102/Lkw/2000 & C.O. No.103/Lkw/2004 Assessment Year: 1996-97 With ITA No.1306/Kol/2007 Assessment Year: 1999-2000 With ITA No.1511/Kol/2008 & C.O. No.108/Kol/2008 Assessment Year: 2000-01 DCIT, Central Circle-01, Lucknow/New Delhi Vs. M/s. Sahara India Commercial Corporation (earlier known as M/s. Sahara India Mutual Benefit Company Ltd.), 2A Sahara India Sadan, Shakespeare Sarani, Kolkata PAN: AADCS6118F (Appellant) (Respondent/Cross objector) 2 | P a g e With ITA No.303/Lkw/2001 Assessment Year: 1996-97 With ITA No.1831/Del/2017 Assessment Year: 1999-2000 With ITA No.2564/Del/2008 Assessment Year: 2000-01 M/s. Sahara India Commercial Corporation (earlier known as M/s. Sahara India Mutual Benefit Company Ltd.), 2A Sahara India Sadan, Shakespeare Sarani, Kolkata Vs. DCIT, Central Circle-01, New Delhi PAN: AADCS6118F (Appellant) (Respondent) ORDER PER SATBEER SINGH GODARA, JM The instant batch of twenty cases pertains to the single assessee herein, namely, Sahara India Commercial Corporation Ltd. (earlier known as M/s. Sahara India Mutual Benefit Company Ltd.). All other relevant details thereof read as under: Assessee by Sh. Sanjeev Kumar Gupta, Adv. Sh. Sarvesh Kr. Srivastava, AR Department by Sh. Sanjeev Kaushal, CIT(DR) Date of hearing 15.01.2025 Date of pronouncement 29.01.2025 3 | P a g e Sl. No. Appeal No. Appellant Respondent Order Appealed against Assessment order dated 1-2 2734/Del/2 014 with C.O. No. 47/Del/201 5 for AY: 1991-92 DCIT, Central Circle-6, New Delhi M/s. Sahara India Commercial Corporation Limited CIT(A)-I, New Delhi’s order dated 12.02.2014 passed in case no. 716/09-10 involving proceedings under Section 143(3)/148 r.w.s. 254 of the Act. 01.01.2003 framed by DCIT, Central Circle-I, Lucknow 3-4 41/Lkw/20 02 with C.O. No.24/Lkw/ 2005 for AY: 1994-95 DCIT, Central Circler-I, Lucknow M/s. Sahara India Commercial Corporation Ltd. CIT(A)-III, Lucknow’s order dated 30.10.2001 passed in case no. 85/44/CC- I/LKO/2001-02 involving proceedings under Section 144/251 of the Act. 29.03.2001 framed by DCIT, Central Circle-I, Lucknow 5-6 705/Lkw/2 002 with C.O. No.69/Lkw/ 2005 for AY: 1995-96 DCIT, Central Circle-1, Lucknow M/s. Sahara India Commercial Corporation Ltd. CIT(A)-III, Lucknow’s order dated 10.05.2002 passed in case no. 1/CC- I/Lko/2002 involving proceedings under Sections 144/251/263 of the Act. 26.02.2002 framed by DCIT, Central Circle-I, Lucknow 7-8 595/Alld/1 999 With C.O. No. 29/Alld/19 99 for AY:2005-06 DCIT, Central Circle-1, Lucknow M/s. Sahara India Commercial Corporation Ltd. CIT(A), Lucknow’s order dated 20.04.1998 passed in case no. 19/CC- I/400/1998-99 involving proceedings under Section 144 of the Act. 20.03.1998 framed by ACIT, Central Circle-I, Lucknow 9-10 706/Lkw/2 002 with C.O. No. 139/Lkw/2 004 for AY: 1996-97 DCIT, Central Circle-1, Lucknow M/s/ Sahara India Commercial Corporation Ltd. CIT(A), Lucknow’s order dated 10.05.2002 passed in case no. 2/CC- 1/Lko/2002-03 involving proceedings under Section 144/251 of the Act. 26.02.2002 framed by DCIT, Central Circle-I, Lucknow 11-12 132/Lkw/2 000 with C.O. No. 5/Lkw/200 2 for AY: 1996-97 DCIT, Central Circle-1, Lucknow Sahara India Commercial Corporation Ltd. CIT(A), Lucknow’s order dated 07.06.2000 passed in case no. 52/CC- 1/Lko/1999-2000 involving proceedings under Section 144 of the Act. 02.05.2000 framed by ACIT, Central Circle-I, Lucknow 13-14 102/Lkw/2 000 with C.O. No. 103/Lkw/2 004 for AY: 1996-97 DCIT, Central Circle-1, Lucknow Sahara India Commercial Corporation Ltd. CIT(A), Lucknow’s order dated 02.05.2022 passed in case no. 52/CC- 1/Lko/1999-2000 involving proceedings 23.04.1999 framed by ACIT, Central Circle-I, Lucknow 4 | P a g e under Section 144 of the Act. 15 1306/Kol/2 007 for AY: 1999-2000 DCIT, Circle-8, Kolkata Sahara India Commercial Corporation Ltd. CIT(A)-I, New Delhi’s order dated 06.02.2007 passed in case no. 98/06-07 involving proceedings under Section 143(3) of the Act. 28.03.2002 framed by DCIT, Central Circle-I, Lucknow 16-17 1511/Kol/2 008 with C.O. No. 108/Kol/20 08 for AY: 2000-01 DCIT, Circle-8, Kolkata Sahara India Commercial Corporation Ltd. CIT(A)-I, New Delhi’s order dated 28.05.2008 passed in case no. 225/06-07 involving proceedings under Section 143(3) of the Act. 20.03.2003 framed by DCIT, Central Circle-I, Lucknow 18. 303/Lkw/2 001 for AY: 1996-97 Sahara India Commercial Corporation Ltd. DCIT, Central Circle-1, Lucknow CIT(A)-II, Lucknow’s order dated 13.03.2001 passed in case no. 34/CC- I/Lko/2000-01 involving proceedings under Section 144/251 of the Act. 13.11.2000 framed by DCIT, Central Circle-I, Lucknow 19. 1831/Del/2 007 for AY: 1999-2000 Sahara India Commercial Corporation Ltd. DCIT, Central Circle-VI, New Delhi CIT(A)-I, New Delhi’s order dated 06.02.2007 passed in case no. 98/06-07 involving proceedings under Section 143(3) of the Act. 28.03.2002 framed by DCIT, Central Circle-I, Lucknow 20. 2564/Del/2 008 for AY: 2000-01 Sahara India Commercial Corporation Ltd. ACIT, Central Circle-VI, New Delhi CIT(A)-I, New Delhi’s order dated 28.05.2008 passed in case no. 225/06-07 involving proceedings under Section 143(3) of the Act. 20.03.2003 framed by DCIT, Central Circle-I, Lucknow 2. Heard both the parties at length on the limited issue of territorial jurisdiction of the Delhi benches of the Income Tax Appellate Tribunal. Case files perused. 3. We notice at the outset during the course of hearing that in none of the instant appeals/cross appeals/cross -objections, as the case may be, the “situs” of the learned Assessing Authorities is 5 | P a g e situated within the territorial jurisdiction of the Delhi benches of the Income Tax Appellate Tribunal as the assessments herein had either been framed at Lucknow, as tabulated hereinabove. 4. That being the clinching factual position emerging from the case files, we note that the earlier learned coordinate bench has already dismissed the identical cases of group entity(ies), namely, “M/s. Sahara India Commercial Corporation Ltd.” as follows: “ITA No.1071/Del/2014 Assessment Year: 2005-06 With ITA No. 2455/Del/2014 Assessment Year: 2006-07 M/s. Sahara India Commercial Corporation Ltd., Sahara India Sadan, 2A Shakespeare Sarani, Kolkata-700071 Vs. Dy. Commissioner of Income Tax, Central Circle-6, New Delhi PAN :AADCS6118F (Appellant) (Respondent) With ITA No.1151/Del/2014 Assessment Year: 2005-06 With ITA No. 1161/Del/2016 Assessment Year: 2005-06 With ITA No. 255/Del/2017 Assessment Year: 2006-07 With ITA No.3329/Del/2014 Assessment Year: 2006-07 Dy. Commissioner of Income Tax, Central Circle-6, New Delhi Vs. M/s. Sahara India Commercial Corporation Ltd., Sahara India Sadan, 2A Shakespeare Sarani, Kolkata-700071 PAN :AADCS6118F 6 | P a g e (Appellant) (Respondent) ORDER PER BENCH The instant batch of six cases pertains to single assessee herein, namely, Sahara India Commercial Corporation Ltd. All other relevant details read as under: Sl. No. Appeal No. Appellant Respondent Order Appealed against 1. 1071/Del/2014 for AY: 2005-06 Sahara India Commercial Corporation Ltd. DCIT, Central Circle-6, New Delhi CIT(A)-I, New Delhi’s order dated 23.12.2013 passed in case no. 715/09-10 involving proceedings under Section 143(3)/142(2A) of the Act. 2. 2455/Del/2014 for AY: 2006-07 Sahara India Commercial Corporation Ltd. DCIT, Central Circle-6, New Delhi CIT(A)-I, New Delhi’s order dated 05.03.2014 passed in case no. 712/09-10 involving proceedings under Section 143(3) of the Act. 3. 1151/Del/2014 for AY: 2005-06 DCIT, Central Circle-6, New Delhi Sahara India Commercial Corporation Ltd. CIT(A)-I, New Delhi’s order dated 23.12.2023 passed in case no. 715/09-10 involving proceedings under Section 143(3)/142(2A) of the Act. 4. 1161/Del/2016 for AY:2005-06 ACIT, Central Circle-1, New Delhi Sahara India Commercial Corporation Ltd. CIT(A)-23, New Delhi’s order dated 7.12.2015 passed in case no. 58/15-16 involving proceedings under Section 271(1)(c) of the Act. 5. 225/Del/2017 for AY: 2006-07 ACIT, Central Circle-1, New Delhi Sahara India Commercial Corporation Ltd. CIT(A)-23, New Delhi’s order dated 04.11.2016 passed in case no. 50/16-17 involving proceedings under Section 271(1)(c) of the Act. 6. 3329/Del/2014 for AY: 2006-07 DCIT, Central Circle-6, New Delhi Sahara India Commercial Corporation Ltd. CIT(A)-1, New Delhi’s order dated 05.03.2014 passed in case no. 712/09-10 involving proceedings under Section 143(3) of the Act. 2. Heard both the parties at length. Case files perused. 3. We first of all advert to the assessee’s and Revenue’s quantum cross appeals i.e. ITA Nos. 1071 & 1151/Del/2014 for former assessment year 2005- 06 and ITA No. 2455 & 3329/Del/2014 for latter assessee year 2006-07. It Assessee by Sh. Ajay Vohra, Sr. Advocate Sh. Saksham Singhal, Advocate Sh. Shivam Gupta, CA Department by Mr. Javed Akhtar, CIT(DR) Date of hearing 21.11.2024 Date of pronouncement 26.11.2024 7 | P a g e emerges with the able assistance coming from both the parties that it was learned DCIT, Circle-8, Kolkata who had framed these twin amount assessments dated 18.07.2008 and 26.12.2008 assessment year-wise; respectively. 4. It is also noticed that there arises the first and fundamental issue of this tribunal’s Delhi benches’ jurisdiction itself since the learned Dy. Commissioner of Income Tax, Circle-8, Kolkata had framed the impugned assessments in assesee’s case on 18.07.2008 followed by the CIT(A)-1 having passed his lower appellate order at New Delhi. 5. Faced with this situation, both the learned parties raised their vehement submissions that Income Tax Appellate Tribunal, Delhi Benches could very well decide the instant cases once they have transferred from Kolkata benches. 6. We find no merit in both the parties’ foregoing unanimous stand in light of the clinching fact that the assessment herein had been framed at Kolkata (supra). We further wish to refer to this Tribunal STANDING ORDER UNDER INCOME TAX APPELLATE TRIBUNAL RULES, 1963 settling the instant issue of territorial jurisdiction of various Benches as per “location of the office of the Assessing Officer” in para 4 thereof. We also deem it appropriate to refer to hon’ble apex court’s recent landmark decision in PCIT Vs. ABC Papers Ltd. (2022) 447 ITR 1 (SC), settling the issue that it is only the “situs” of the Assessing Officer framing assessment which forms the decisive factor for the purpose of determining territorial jurisdiction of hon’ble high court. 7. Needless to mention, we wish to clarify here that this Tribunal’s forgoing STANDING ORDER applicable with effect from 1st November, 1997 has verbatim adopted the “situs” of the Assessing Officer framing assessment and, therefore, we conclude that their lordships’ detailed analysis would apply mutatis mutandis herein as well. 8. We accordingly decline both the Revenue’s instant appeal as well as assessee’s cross objection(s) thereby concluding that ITAT, Delhi Benches do not have territorial jurisdiction to decide the same, subject to a rider that the department as well as the assessee shall indeed be at liberty to institute their respective appeals, as the case may be, before the appropriate Benches at Kolkata and delay caused therein involving the entire intervening period shall stand condoned. These twin cross appeals are dismissed for want of territorial jurisdiction of Delhi Benches of Income Tax Appellate Tribunal. 9. We now left with the assessee’s remaining twin cross appeals i.e. ITA No. 1161/Del/2016 for assessment year 2005-06 and ITA No.225/Del/2017 for assessment year 2006-07 which also deserves to follow the aforesaid decision (supari) in the light of foregoing quantum developments in very terms. 10. To sum up, these assessee’s two appeals and Revenue’s four quantum cross appeals are dismissed in above terms. Copy of this common order be placed in the respective files.” 5. We adopt this tribunal’s above extracted detailed discussion mutatis mutandis and dismiss all these Revenue’s and assessee’s 8 | P a g e appeals/cross appeals/cross objections (supra) for want of territorial jurisdiction of Delhi benches of the Income Tax Appellate Tribunal in above terms. 6. Needless to say, both the parties shall be indeed at liberty to file their fresh respective cases, if so advised, before the appropriate bench(es) of this tribunal and the delay in filing the appeals involving the entire time period as on date, shall be deemed to have been condoned. Ordered accordingly. 7. To sum up, Revenue’s and assessee’s twenty appeals/cross appeals/cross objections (supra) are dismissed in above terms. A copy of this common order be placed in the respective case files. Order pronounced in the open court on 29th January, 2025 Sd/- Sd/- (AVDHESH KUMAR MISHRA) (SATBEER SINGH GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 29th January, 2025. RK/- Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi "