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TMI Blog2023 (10) TMI 702X X X X Extracts X X X X X X X X Extracts X X X X ..... ll have the jurisdiction to entertain the appeal. We are of the opinion that this tax case appeal cannot be maintainable within the High Court of judicature at Madras, as the entire assessment proceedings including the final assessment order un/s 143(3) r/w section 92CA(3) r/w section 144C(5) of the Act, were done / completed by the authorities at Hyderabad and the amalgamation of the appellant company got approval from the Central Government only on 25.07.2017. At this juncture, the learned counsel for the appellant sought liberty to the appellant to go before the jurisdictional High Court of Telangana to work out their remedy. Granting such liberty to the appellant, this tax case appeal stands disposed of. - Hon'ble Mr. Just ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... length at an entity level under Transaction Net Margin Method ? 4. Whether under the facts and circumstances of the case and in law, the Tribunal was justified in holding that interest should be charged at LIBOR rate plus adhoc 3% on account of delayed realisation of receivables from Associated Enterprises ? 3. It appears from the records that the appellant viz,, M/s. Excellence Data Research Private Limited, having office at Hyderabad, is engaged in the business of providing back-office IT support services and it was amalgamated into M/s. Cognizant Technology Solutions India Private Limited, Chennai, with effect from 01.04.2016, vide order of the Central Government represented by the Regional Director, Ministry of Corporate Affai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... disposed of the same, thereby allowing certain objections, while rejecting many of the other objections. Consequently, the Assessing Officer, passed the final assessment order on 23.12.2016 recomputing the transfer pricing adjustment towards interest chargeable by the appellant on delayed realisation of receivables from AEs at Rs.1,01,05,554/- by adopting short term fixed deposit rates as against the prime lending rate of 14.75% adopted earlier, pursuant to the directions of the DRP. Challenging the same, the appellant preferred an appeal before the ITAT at Hyderabad. Considering the change in jurisdiction, pursuant to the amalgamation of the appellant company, the appeal was transferred to the ITAT at Chennai, which, by order dated 06.12.2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is connection, it may be useful to refer to the decision of the Hon'ble Supreme Court in Principal Commissioner of Income Tax -I, Chandigarh v. ABC Papers Limited [2022 SCC Online SC 1036] , wherein, it was held as follows: 34. The binding nature of decisions of an appellate court established under a statute on subordinate courts and tribunals within the territorial jurisdiction of the State, is a larger principle involving consistency, certainty and judicial discipline, and it has a direct bearing on the rule of law. This need for order and consistency in decision making must inform our interpretation of judicial remedies. An important reason adopted in the case of Seth Banarasi Dass Gupta, further highlighted by Justice Laho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... High Court. If we accept the submission, it will have the effect of the executive having the power to determine the jurisdiction of a High Court. This can never be the intention of the Parliament. The jurisdiction of a High Court stands on its own footing by virtue of Section 260A read with Section 269 of the Act. While interpreting a judicial remedy, a Constitutional Court should not adopt an approach where the identity of the appellate forum would be contingent upon or vacillates subject to the exercise of some other power. Such an interpretation will clearly be against the interest of justice. Under Section 127, the authorities have the power to transfer a case either upon the request of an assessee or for their own reasons. Though the d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t be based on the location of the ITAT. These judgments are CIT v. Parke Davis (India) Ltd. ((1999) 238 ITR 820 (AP), CIT v. A.B.C India Lted ((2003) 126 Taxman 18 (Cal)), CIT v. J.L. Marrison (India) Ltd ((2005) 272 ITR 321 (Cal)), CIT v. Akzo Nobel India Ltd ((2014) 47 Taxmann.com 372 (Cal)), Pr.CIT v. Sungard solutions (I) Pvt. Ltd ((2019) 415 ITR 294 (Bom) and CIT v. Shree Ganapati Rolling Mills (P) Ltd ((2013) 356 ITR 586 (Gau)). We have examined these cases in detail and found that the Assessing Officers in each of these cases were in fact not located within the territorial jurisdiction of these High Courts. For this reason, the aforesaid decisions are correct to the extent of these High Courts not exercising jurisdiction. However, wh ..... X X X X Extracts X X X X X X X X Extracts X X X X
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