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

ITA 1151/DEL/2014

AI Insights

The case involves multiple appeals by Sahara India Commercial Corporation Ltd. and the Deputy Commissioner of Income Tax, Central Circle-6, New Delhi, concerning assessments for the years 2005-06 and 2006-07. The primary legal issue was the territorial jurisdiction of the Delhi Benches of the Income Tax Appellate Tribunal to hear the appeals, given that the original assessments were conducted in Kolkata. Both parties agreed that the Delhi Benches could decide the cases post-transfer from Kolkata, but the Tribunal found no merit in this stance, citing the 'situs' of the Assessing Officer as the key factor in determining jurisdiction. Consequently, all appeals were dismissed, and parties were advised to approach the Kolkata benches.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 40649 (ITAT-DELHI)
• Duration Of Justice: 10 year(s) 8 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-11-2024
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 21-11-2024
• Assessment Year: 2005-2006
• Appeal Filed On: 28-02-2014
• Other Referred Cases: PCIT Vs. ABC Papers Ltd. (2022) 447 ITR 1 (SC)
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JAVED AKHTAR
• Assessee Lawyers: AJAY VOHRA
• Section: 143(3)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH: ‘A’ NEW DELHI BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SHRI M. BALAGANESH, ACCOUNTANT MEMBER 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 (Appellant) (Respondent) ITA Nos.1071 & 2455/Del/2014; 1151/Del/2014; 1161/Del/2016; 225/Del/2017 & 3329/Del/2014 2 | P a g e 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. 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 ITA Nos.1071 & 2455/Del/2014; 1151/Del/2014; 1161/Del/2016; 225/Del/2017 & 3329/Del/2014 3 | P a g e 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 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. ITA Nos.1071 & 2455/Del/2014; 1151/Del/2014; 1161/Del/2016; 225/Del/2017 & 3329/Del/2014 4 | P a g e 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 ITA Nos.1071 & 2455/Del/2014; 1151/Del/2014; 1161/Del/2016; 225/Del/2017 & 3329/Del/2014 5 | P a g e 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. ITA Nos.1071 & 2455/Del/2014; 1151/Del/2014; 1161/Del/2016; 225/Del/2017 & 3329/Del/2014 6 | P a g e Order pronounced in the open court on 26th November, 2024 Sd/- Sd/- (M. BALAGANESH) (SATBEER SINGH GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 26th November, 2024. RK/- Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi "