THE PR. COMMISSIONER OF INCOME TAX V. DILEEP KUMAR

IAPLD/13/2021

AI Insights

The case involves an appeal by the Principal Commissioner of Income Tax against an order of the Income Tax Appellate Tribunal, Ahmedabad, concerning the assessee Dileep Kumar Lalwani for the assessment year 2012-13. The appeal was filed under Section 260-A of the Income Tax Act, 1961. The primary legal issue was the appropriate jurisdiction for the appeal following the transfer of the assessee's case from one assessing officer to another under Section 127(2) of the Act. The revenue argued that the case was correctly filed in the current jurisdiction based on the transfer order. However, the court found that the case was not pending as of the transfer order date, leading to the conclusion that the original jurisdiction (Gujarat High Court) retained authority over the appeal.

• Counselvise Citation: [2021] 140 COUNSELVISE.COM (IT) 764158 (HC-GUJARAT)
• Appeal Type: Others
• Pronouncement Date: 23-10-2021
• Assessment Year: misc
• Other Referred Cases: Principal Commissioner of Income-Tax Central Kanpur Vs. Dinesh Chandra Jain, The Pr. Commissioner of Income-Tax-1 & Anr. Vs. Atul Kumar Sogani
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Assessee Lawyers: GAURAV MAHAJAN
• Keywords: Case transfer; Income tax appellate tribunal; Jurisdiction; Pending cases
• Section: 127(2); 120; 260-A

Judgement Text

"Court No. - 3 Case :- INCOME TAX APPEAL DEFECTIVE No. - 13 of 2021 Appellant :- The Pr. Commissioner Of Income Tax Respondent :- Dileep Kumar Counsel for Appellant :- Gaurav Mahajan Hon'ble Naheed Ara Moonis,J. Hon'ble Saumitra Dayal Singh,J. 1. Heard Sri Gaurav Mahajan, learned counsel for the revenue. 2. Present appeal has been filed under Section 260-A of the Income Tax Act, 1961 (hereinafter referred to as the 'Act') against the order of the Income Tax Appellate Tribunal, Ahmedabad dated 12.11.2020 in ITAT Nos. 78/Ahd/2019 and 198/Ahd/2019. 3. Undisputedly, that order was passed in the case of the assessee Dilip Kumar Lalwani for A.Y. 2012-13. The present appeal has been filed before this Court on 18.06.2021. 4. To maintain the appeal before this Court, learned counsel for the revenue has relied on an order dated 29.12.2020 passed by the PCIT (Central), Ahmedabad under Section 127(2) of the Act, whereby it has been provided : \"8. Accordingly, in exercise of the powers conferred by sub-section (1) & (2) of the section 127 of the Income Tax Act, 1961 and all other powers enabling me in this behalf, I, Pr. Commissioner of Income Tax (Central), Ahmedabad transfer the below referred case, particulars of which is mentioned in column 2 of the schedule herein below from the assessing officer mentioned in column 5 to the Assessing Officer mentioned in column 6 thereof for coordinated investigation. The transfer of PAN follows: S.No. Name PAN Status Present AO To be centralized with 1 2 3 4 5 6 1 DILIP KUMAR LALWANI AAEPL5472F Indl. DCIT, Central Circle-1(1), Ahmedabad DCIT, Central Circle-1, Noida 5. Thus, it has been submitted, once the case of the assessee Dilip Kumar Lalwani had been transferred from DCIT, Central Circle-1(1), Ahmedabad to DCIT, Central Circle-1, Noida, it is the Noida authority alone which has jurisdiction over the said assessee. Therefore, the present appeal has been rightly filed before this Court. Reliance has been placed on two decisions of this Court passed in Income Tax Appeal No. 276 of 2015 (Principal Commissioner of Income-Tax Central Kanpur Vs. Dinesh Chandra Jain) and Income Tax Appeal Defective No. 1 of 2021 (The Pr. Commissioner of Income-Tax-1 & Anr. Vs. Atul Kumar Sogani). 6. Having heard learned counsel for the revenue, we are unable to accept the submissions advanced. Explanation to Section 127 of the Act reads as under: \"Explanation.-- In Section 120 and this section, the word “case”, in relation to any person whose name is specified in any order or direction issued thereunder, means all proceedings under this Act in respect of any year which may be pending on the date of such order or direction or which may have been completed on or before such date, and includes also all proceedings under this Act which may be commenced after the date of such order or direction in respect of any year.\" 7. Thus, for the purpose of jurisdiction of the income tax authorities, under Section 120 of the Act and in view of the transfer order dated 29.12.2020, only such cases had been transferred to the authority - DCIT, Central Circle-1, Noida under that order, as may have been 'pending' before the assessing authority, on that date being 29.12.2020. 8. Here, it may be noted, the assessment order (in the case of the assessee Dilip Kumar Lalwani) was passed on 28.12.2017. The first appeal therefrom was decided on 31.01.2019 and further appeal therefrom was decided by the Tribunal on 12.11.2020. Thus, on the date 29.12.2020, the assessment case of the respondent assessee for A.Y. 2012-13 was not pending. Even if we were to apply the principle of appeal being continuation of the assessment, the fact that the revenue has chosen to file the instant appeal in June, 2021, it cannot be relied to contend that therefore proceeding was pending on 29.12.2020. 9. Clearly, what were transferred under the order dated 29.12.2020 were cases that were pending on that date only. The decisions cited by learned counsel for the revenue are distinguishable as in those appeals the 'case' was pending on the date of the transfer order. 10. For the foregoing reasons, we find that the jurisdiction to hear the appeal would continue vest with the Gujarat High Court. The appeal has been wrongly instituted before this court. 11. Accordingly, the present appeal is dismissed as wrongly instituted before this Court. Order Date :- 23.10.2021 Abhilash SAUMITRA DAYAL SINGH Digitally signed by SAUMITRA DAYAL SINGH Date: 2021.10.25 11:35:27 +05'30' NAHEED ARA MOONIS Digitally signed by NAHEED ARA MOONIS Date: 2021.10.25 11:36:05 +05'30' "