PCIT Vs P Palanisamy (Karnataka High Court)
The Karnataka High Court considered an appeal filed under Section 260A of the Income Tax Act, 1961 challenging the Income Tax Appellate Tribunal, ‘C’ Bench, Chennai order dated 09.02.2026 in ITA.No.209/CHNY/2025. On scrutiny, the Registry raised objections regarding the maintainability of the appeal before the Court. The Revenue submitted that the assessee was at Bengaluru, while the assessment had taken place at Coimbatore following centralization consequent to a search. The Court examined the appeal papers and noted that the assessment order had been passed by the Assistant Commissioner of Income Tax, Central Circle-3, Coimbatore, whereas the ITAT order had been passed by the ‘C’ Bench, Chennai.
The Court referred to the Supreme Court decision in Principal Commissioner of Income-Tax vs. ABC Papers Ltd., [(2022) 141 taxmann.com 332 (SC)], which held that appeals against ITAT decisions lie only before the High Court within whose jurisdiction the Assessing Officer who passed the assessment order is situated. The Supreme Court had further held that even where an assessee’s case is transferred under Section 127 of the Income Tax Act, the High Court having jurisdiction over the Assessing Officer who passed the assessment order continues to exercise appellate jurisdiction, including where the transfer concerns the same assessment year(s).
