DY. COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE -2, KANPUR V. SHRI JAGDISH PRASAD GUPTA, KOLKATA

ITA 8/LKW/2022

AI Insights

The case involves an appeal by the Revenue against the order of the Learned Commissioner of Income Tax (Appeals)-4, Kanpur, which quashed the assessment proceedings for the assessment year 2014-15. The original assessment had significantly increased the income of the assessee, Shri Jagdish Prasad Gupta, from the returned income to over Rs. 4.44 crore. The primary legal contention in the appeal was the jurisdiction of the Lucknow Bench of the ITAT to hear the case, given that the jurisdictional Assessing Officer was located in Kolkata. The Lucknow Bench, referencing a Supreme Court decision, found that it did not have jurisdiction and dismissed the appeal, advising the Revenue to approach the correct Bench in Kolkata.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 785314 (ITAT-LUCKNOW)
• Duration Of Justice: 3 year(s) 9 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-10-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2014-2015
• Appeal Filed On: 05-01-2022
• Other Referred Cases: ACIT Central Circle-1 vs M/s. Raghunath International Ltd
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R.K. AGARWAL
• Assessee Lawyers: ASHISH JAISWAL
• Section: 143(3)

Judgement Text

"आयकर अपीलीय अधिकरण ‘ए’ न्यायपीठ, लखनऊ। IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH “A”, LUCKNOW श्री क ुल भारत, उपाध्यक्ष एवं श्री अनादी नाथ मिश्रा, लेखा सदस्य क े समछ BEFORE SHRI KUL BHARAT, VICE PRESIDENT AND SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER आयकर अपील सं/ ITA No.8/LKW/2022 ननिाारण वर्ा/ Assessment Year: 2014-15 DCIT, Central Circle-2 Laxmi Niwas, 10/503, Allenganj, Kanpur-208001. v. Shri Jagdish Prasad Gupta 16, Tara Chand Dutta Street, Kolkata-700073. PAN:ACZPG0723F अपीलार्थी/(Appellant) प्रत्यर्थी/(Respondent) अपीलार्थी कक और से/Appellant by: Shri R. K. Agarwal, CIT(DR) प्रत्यर्थी कक और से /Respondent by: Shri Ashish Jaiswal, CA सुनवाई कक तारीख / Date of hearing: 12 08 2025 घोर्णा कक तारीख/ Date of pronouncement: 31 10 2025 आदेश / O R D E R PER KUL BHARAT, VICE PRESIDENT.: This appeal, by the Revenue, is directed against the order of the Learned Commissioner of Income tax (Appeals)-4, Kanpur dated 04.10.2021, pertaining to the assessment year 2014-15. Revenue has raised the following grounds of appeal: - “1. On the facts and circumstances of the case and in law, Ld. CIT(A) erred in quashing the assessment proceedings and holding the assessment null and void on the technical ground by ignoring the statutory provisions of section 124(3) of the Income Tax Act, 1961. 2. That the above ground is without prejudice to each other and appellant craves leave to add or amend any other more ground of appeal as stated above as and when needs for doing so may arise.” Printed from counselvise.com ITA No.8/LKW/2022 Page 2 of 4 2. In this case, the assessment order dated 28.12.2016 was passed u/s 143(3) of the Income Tax Act, 1961 (“Act”, for short) by ITO Ward-40(3), Kolkata; whereby the income of the assessee was determined at Rs.4,44,70,049/- as against the returned income of Rs.8,42,070/-. In the aforesaid assessment order an addition of Rs.4,36,27,979/- was made by the Assessing Officer against which the assessee filed appeal. Assessee’s appeal against the aforesaid assessment order was decided by the Ld. CIT(A) – IV, Kanpur. The present appeal has been filed by the assessee in Lucknow Bench of the Income Tax Appellate Tribunal (ITAT). After the appeal was initially heard in Lucknow Bench of ITAT, it was subsequently fixed for hearing for seeking clarification as to whether the Lucknow Bench of the ITAT had jurisdiction over the present appeal. The Ld. Counsel for the assessee pressed for this appeal to be decided on merits by Lucknow Bench of ITAT, insisting that the jurisdiction over the appeal was with Lucknow Bench of ITAT. The Ld. Counsel for the assessee remained steadfast in this contention despite reservation expressed by this Bench. The Ld. Departmental Representative left the matter regarding the jurisdiction of the appeal to the discretion of the Bench. 3. The identical issue came up before the Lucknow Bench of ITAT rendered in the case of ACIT Central Circle-1 vs M/s. Raghunath International Ltd in ITA. No.376/LKW/2023 for A.Y. 2005-06 which was disposed of vide order dated 27.09.2024. On the issue of jurisdiction of Lucknow Bench of ITAT, the Co- ordinate Bench of this Tribunal Lucknow took the following view:- Printed from counselvise.com ITA No.8/LKW/2022 Page 3 of 4 “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 unadmitted 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.” 4. The facts of the present appeal before us are also in pari materia with the facts of the aforesaid case in the case of ACIT Central Circle-1 vs M/s. Raghunath International Ltd (supra). In the present case, the jurisdictional Assessing Officer who passed the assessment order is in Kolkata, which is outside the territorial jurisdiction of the Hon’ble Allahabad High Court as well as outside the territorial jurisdiction of Lucknow Bench of ITAT. Respectfully following the decision of the Co-ordinate Bench of ITAT Lucknow in the case of ACIT Central Circle-1 vs M/s. Raghunath International Ltd (supra), therefore, we hold that the appeal of the Revenue in the present case is not maintainable in Lucknow Bench of ITAT. In view of the foregoing, the appeal is dismissed in limine, as unadmitted, being not Printed from counselvise.com ITA No.8/LKW/2022 Page 4 of 4 maintainable in the territorial jurisdiction of the Lucknow Bench of ITAT. Revenue will be at liberty to file appeal before the appropriate Bench of ITAT falling under the jurisdiction of Hon’ble Calcutta High Court. 5. In the result, the appeal of the Revenue is dismissed for statistical purposes. Order pronounced in the open Court on 31/10/2025. Sd/- [अनादी नाथ मिश्रा] Sd/- [क ुल भारत] [ANADEE NATH MISSHRA] [KUL BHARAT] लेखा सदस्य/ACCOUNTANT MEMBER उपाध्यक्ष/VICE PRESIDENT ददनांक/DATED: 31/10/2025 Vijay Pal Singh, (Sr. PS) Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. DR 5. Guard File By order // True Copy// Printed from counselvise.com "