Double Tree by Hilton Hotel Vs ACIT (TDS) (ITAT Delhi)
The Income Tax Appellate Tribunal (ITAT), Delhi, dismissed an appeal filed for Assessment Year 2016-17 relating to proceedings under Section 271C of the Income-tax Act, 1961, after holding that the Delhi Benches lacked territorial jurisdiction. The Tribunal proceeded ex parte as none appeared on behalf of the assessee. It also condoned a delay of eight days in filing the appeal in the interest of justice.
During hearing, the Tribunal noted that the assessee’s regular assessment jurisdiction was located at Agra. Referring to the ITAT Standing Order issued under the Income Tax Appellate Tribunal Rules, 1963, the Tribunal observed that territorial jurisdiction of Benches is determined by the “location of the office of the Assessing Officer.” It also relied upon the Supreme Court decision in PCIT vs. ABC Papers Ltd. (2022) 447 ITR 1 (SC), which held that the “situs” of the Assessing Officer framing the assessment is the decisive factor for determining territorial jurisdiction.
The Tribunal held that the Standing Order effective from 1 November 1997 had adopted the same principle regarding the situs of the Assessing Officer. Since the Assessing Officer having jurisdiction over the assessee was situated at Agra, the Delhi Benches of ITAT lacked territorial jurisdiction to entertain the appeal.
