Sahara India Ltd. Vs ITAT Delhi Bench & Ors. (Delhi High Court)
In Sahara India Ltd. v. ITAT Delhi Bench & Ors., the Delhi High Court held that the Income Tax Appellate Tribunal (ITAT) Delhi Bench acted unlawfully in dismissing long-pending appeals and cross-objections of the Sahara Group on the ground of lack of territorial jurisdiction. These matters had originally been filed before the Lucknow Bench but were administratively transferred to Delhi by orders of the ITAT President under the Tribunal Rules. Despite acknowledging this transfer and despite neither party objecting to jurisdiction, the Delhi Bench relied on the Supreme Court ruling in PCIT v. ABC Papers Ltd. to hold that jurisdiction depended on the situs of the Assessing Officer, and dismissed the cases instead of transferring them back. The High Court ruled this approach “wholly unsustainable,” clarifying that a judicial bench of the ITAT cannot override or nullify an administrative transfer order passed by the President. It further held that the ABC Papers judgment concerned High Court appellate jurisdiction under Section 260A and had no application to internal administrative transfers within the ITAT. The impugned dismissal orders were set aside, and all appeals and cross-objections were restored to the Delhi Bench for decision on merits.
