Deputy Commissioner of Income-Tax, Central Circle-1(3), Bengaluru V. Sri. Vinod Kashyap, New Delhi

ITA 441/BANG/2023

AI Insights

The case involves an appeal by the Revenue against an order from the CIT(A) dated 03.03.2023. The primary legal issue was the jurisdiction of the Bangalore Bench of the Income Tax Appellate Tribunal (ITAT) to entertain the appeal, given that the AO who issued the assessment order was located in Delhi. The Tribunal referenced decisions from the Supreme Court in ABC Papers Ltd. and MSPL Ltd., which clarified that the jurisdiction of the ITAT and High Courts is determined by the location of the AO who passed the assessment order, irrespective of any transfer of jurisdiction under section 127 of the Income Tax Act, 1961.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 124557 (ITAT-BANGALORE)
• Duration Of Justice: 2 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-08-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 02-08-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 01-06-2023
• Other Referred Cases: ABC Papers Ltd. vs. Unknown, MSPL Ltd. vs. Unknown
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH : BANGALORE BEFORE SHRI GEORGE GEORGE K, VICE PRESIDENT AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER ITA No.441/Bang/2023 Assessment Year : 2017-18 DCIT, Bengaluru. Vs. Shri Vinod Kashyap, Room 308, CR Building, Queens Road, Bengaluru – 560 001. PAN : AGDPK 0398 Q APPELLANTRESPONDENT Revenue by:Shri.Veera Raghavan, JCIT(DR), ITAT, Bengaluru. Assessee by :Shri. Saurav Rohatgi, CA Date of hearing:03.08.2023 Date of Pronouncement:03.08.2023 O R D E R Per George George K, Vice President: This appeal at the instance of the Revenue is directed against CIT(A)’s order dated 03.03.2023. 2. At the outset, we notice that the Bangalore Bench of the Tribunal does have jurisdiction to entertain this appeal since the Situs of the AO who passed the order is in Delhi. The Hon’ble Apex Cout’s judgment in the case of ABC Papers Ltd., (reported in 447 ITR 1) and MSPL Ltd., (reported in 454 ITR 280) had categorically held that jurisdiction of the Tribunal and / or jurisdiction of the Hon’ble High Court would depend upon the Situs of the AO who passed the Assessment Order and same is unaffected by the transfer of jurisdiction under ITA No.441/Bang/2023 Page 2 of 3 section 127 of the Income Tax Act, 1961. The gist of the judgment of the Hon’ble Apex Court and the relevant paras are as under: Decision Relevant Para Summary Hon'ble Supreme Court in ABC Papers Ltd., (reported in 447 ITR 1) Para 31 and 33 Order u/s 127 since it is relatable only to the jurisdiction of the Income-tax Authorities and has no bearing on the ITAT and High Court. As a matter of principle, transfer of a case from one judicial forum to another judicial forum, without the intervention of a Court of law is against the independence of judiciary. Accordingly, appeals against every decision of the ITAT shall lie only before the High Court within whose jurisdiction the AO 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/ ITAT 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). Hon'ble Supreme Court in MSPL Ltd. (reported in 454 ITR 280) Para 3 and 6 Relying upon decision of Hon'ble SC in ABC Papers Ltd. (supra), the Hon'ble SC held that jurisdiction of ITAT and/or jurisdiction of the concerned High Court would depend upon the situs of AO who passed the assessment order. 3. In light of the above judgment of the Hon’ble Apex Court, since the Assessment Order has been passed by the AO at Delhi, the Revenue ought to have filed appeal before the Delhi Benches of the Tribunal. Therefore, appeal filed by the Revenue before the Bangalore Benches of the Tribunal is dismissed and liberty is granted to the Revenue to file fresh appeal before the appropriate forum. It is ordered accordingly. ITA No.441/Bang/2023 Page 3 of 3 4. In the result, appeal filed by the Revenue is dismissed. Pronounced in the open court on the date mentioned on the caption page. Sd/- Sd/- (LAXMI PRASAD SAHU) (GEORGE GEORGE K) Accountant MemberVice President Bangalore. Dated: 03.08.2023. /NS/* Copy to: 1.Appellants2.Respondent 3.CIT4.CIT(A) 5.DR, ITAT, Bangalore.6.Guard file By order Assistant Registrar, ITAT, Bangalore.