1991 (12) TMI 107 - AT - Income Tax

Appeal Against Assessment, Bench Of Tribunal, Powers Of President Of Tribunal, Territorial Jurisdiction

Summary

Issues:
Jurisdiction of Appellate Tribunal in hearing an appeal from CIT (Appeals), Bhopal.
Correct territorial jurisdiction of the Benches at Delhi and Indore.
Validity of the memorandum of appeal filed before the Tribunal.
Procedure for amending and filing the memorandum of appeal before the competent Bench.

Analysis:
1. The case involved an appeal by the Revenue against the cancellation of interest charges under sections 215 and 216 by CIT (Appeals), Bhopal for the assessment year 1983-84. The primary issue was the jurisdiction of the Appellate Tribunal in hearing this appeal.

2. The jurisdictional dispute arose as the appellant was ITO, Special Ward, Gwalior, and the appeal was heard by the Delhi Bench. The counsel for the assessee argued that the Indore Bench had jurisdiction over appeals from Bhopal District, as per the President's standing order. The Tribunal had to determine its jurisdiction to hear the appeal.

3. The Tribunal clarified that it has the power to regulate its own procedure, including the jurisdiction of its Benches, as per sections 252(1) and 255(5) of the Income-tax Act. The President's authority to define the territorial jurisdiction of Benches was crucial in determining the correct Bench to hear the appeal.

4. The President's standing order No. 1 of 1980 specified the territorial jurisdiction of various Benches, and it was established that the Indore Bench had jurisdiction over appeals from Bhopal District. The Delhi Bench did not have the authority to hear and determine this specific appeal.

5. It was emphasized that the powers of the Tribunal and its President in defining territorial jurisdiction should not be confused with the administrative powers of the Commissioner. The Tribunal's jurisdiction is specified by the President, ensuring clarity in the allocation of cases to the appropriate Bench.

6. The Tribunal found that the appeal was incorrectly filed before the Delhi Bench due to a mistaken belief or misunderstanding. The memorandum of appeal needed to be amended to reflect the correct Bench jurisdiction, as per Rule 12 of the Income-tax (Appellate Tribunal) Rules, 1963.

7. The Tribunal rejected the suggestion to transfer the appeal to the Indore Bench, highlighting that only a validly instituted appeal can be transferred between Benches. The correct procedure was to return the defective memorandum of appeal for amendment and filing before the competent Bench.

8. In conclusion, the Delhi Bench held that it lacked jurisdiction to hear the appeal and ordered the defective memorandum of appeal to be returned to the appellant for necessary amendments and filing before the appropriate Bench with the correct territorial jurisdiction. The Registry was directed to endorse the date of presentation and return of the memorandum of appeal for record-keeping purposes.