2022 (10) TMI 232 - HC - Income Tax

Delhi High 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 Assessing Officer and CIT(A) based in Noida. After amalgamation the Appellant 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. The 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, Income Tax Appeal

Lack of Territorial Jurisdiction:
The High Court dealt with an Income Tax Appeal challenging an order passed by the Income Tax Appellate Tribunal for Assessment Year 2009-10. The Court noted that it had no territorial jurisdiction to entertain and decide the appeal. The Assessee's initial registered office was in Noida, where the assessment order and other relevant documents were issued. However, post-amalgamation, the Assessee's registered office shifted to Bangalore. The appeal was also filed by the Principal CIT in Bangalore. Consequently, the Court dismissed the appeal due to lack of territorial jurisdiction. The Appellant was granted liberty to file the appeal in a Court with the appropriate territorial jurisdiction. Additionally, the Appellant could seek condonation of delay, if necessary, along with the appeal, with the assurance that such application would be considered on its merits.

Income Tax Appeal:
The Income Tax Appeal was filed challenging the ITAT's order dated 28th February, 2020. The Court's analysis of the paper book revealed the jurisdictional issue due to the change in the Assessee's registered office location from Noida to Bangalore post-amalgamation. The Court's decision to dismiss the appeal was primarily based on the lack of territorial jurisdiction of the High Court to adjudicate on the matter. The Appellant was directed to file the appeal in a Court having the requisite territorial jurisdiction, with the option to seek condonation of any delay in filing. This detailed analysis underscores the importance of territorial jurisdiction in legal proceedings and the procedural steps available to parties to rectify jurisdictional issues for a fair adjudication of their appeals.