2022 (10) TMI 231 - HC - Income Tax

Lack of territorial jurisdiction - this Court territorial jurisdiction to entertain and decide this appeal - HELD THAT - The initial registered office of the Assessee was Noida (U.P) and the assessment order as well as remand report and order in appeal have been passed by the AO and CIT(A) based in Noida. After amalgamation, the Petitioner s registered office is now situated in Bangalore. Even the appeal has been preferred by the Principal CIT, Bangalore. Accordingly, present appeal is dismissed on the ground of lack of territorial jurisdiction. However, the Appellant is given liberty to file the appeal in a Court having territorial jurisdiction. Appellant is also given liberty to file an application seeking condonation of delay along with the appeal, if any, to be filed. Needless to state that the same shall be considered on its own merits.

Summary

Issues Involved: Lack of Territorial Jurisdiction, Condonation of Delay

Lack of Territorial Jurisdiction:
The High Court considered an Income Tax Appeal challenging an order passed by the Income Tax Appellate Tribunal for Assessment Year 2010-11. The Court observed that it lacked territorial jurisdiction to entertain and decide the appeal due to the Assessee's initial registered office being in Noida, where the assessment order and subsequent proceedings took place. Following an amalgamation, the Assessee's registered office shifted to Bangalore, and even the appeal was filed by the Principal CIT in Bangalore. Consequently, the Court dismissed the appeal on grounds of lack of territorial jurisdiction. However, the Appellant was granted the liberty to file the appeal in a Court with proper jurisdiction and to seek condonation of any delay in filing the appeal, which would be considered on its merits.

Condonation of Delay:
In a separate application, the Court condoned the delay in filing the present appeal after considering the averments made in the application. The Court disposed of the application, allowing the appeal to proceed despite the delay in filing.

Overall, the High Court's judgment primarily focused on the lack of territorial jurisdiction to entertain the Income Tax Appeal due to the change in the Assessee's registered office location and directed the Appellant to file the appeal in a suitable jurisdiction. Additionally, the Court addressed the issue of condonation of delay in a separate application, where the delay was ultimately condoned, enabling the appeal to move forward.