Landmark judgement of Hon’ble Supreme Court on 18.08.2022
CIVIL APPEAL NO. 4252 OF 2022 ARISING OUT OF SLP (C) NO. 23352 OF 2019
PR. COMMISSIONER OF INCOME TAX – I, CHANDIGARH-APPELLANT
VERSUS
M/S. ABC PAPERS LIMITED-RESPONDENT
Facts of the matter-These appeals give rise to an important question concerning appellate jurisdiction of the High Courts under Section 260A of the Income Tax Act, 19611 against judgments of Income Tax Appellate Tribunals2. As Benches of the ITAT are constituted to exercise jurisdiction over more than one state, each state having a separate High Court, question arose as to which of the High Court is the appropriate Court for filing appeals under Section 260A.
Findings-The court held the following:
1. we hold that the decision of the High Court of Delhi in Sahara and Aar Bee do not lay down the correct law and therefore, we overrule these judgments.
2. 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).
3. we are reiterating for clarity and certainty that the jurisdiction of a High Court is not dependent on the location of the ITAT, as sometimes a Bench of the ITAT exercises jurisdiction over plurality of states.
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Written By- CA Jatin Minocha
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