Sahara India Vs Income Tax Appellate Tribunal Delhi & Ors. (Delhi High Court)
The writ petitions challenged the common order dated 30.05.2025 and the order dated 20.11.2024 passed by the Income Tax Appellate Tribunal, Bench “A”, New Delhi, whereby the Tribunal rejected the appeals filed by both the assessees and the Revenue on the ground of lack of territorial jurisdiction. The appeals related to Assessment Years 1995-96, 1996-97, 1997-98 and 1998-99, and the place of assessment was Lucknow.
The petitioners submitted that the Tribunal had committed errors of law and fact in dismissing the appeals on the ground of territorial jurisdiction. It was argued that, in an identical factual situation concerning another group company, a Coordinate Bench of the Delhi High Court had, by judgment dated 22.01.2026 in Sahara India Limited v. Income Tax Appellate Tribunal, allowed the writ petition, set aside similar orders of the Tribunal, and restored the appeals for hearing before the Delhi Bench of the Tribunal.
Counsel for the respondent did not dispute the factual or legal position arising from the earlier judgment.
The High Court relied upon the reasoning contained in the earlier decision. It noted that the Coordinate Bench had observed that the Delhi Bench of the Tribunal had rejected the appeals despite being aware that they had been transferred from the Lucknow Bench pursuant to an administrative order of the President of the Tribunal. The earlier judgment held that a Bench of the Tribunal could not nullify or sit in appeal over the administrative transfer order passed by the President of the Tribunal. It further observed that the Tribunal had erred in relying upon the decision in ABC Papers Ltd., as that decision dealt with the High Court having jurisdiction over appeals under Section 260A of the Income-tax Act, 1961 following transfer under Section 127, and did not concern the validity or effect of an administrative transfer of appeals between Benches of the Tribunal.
