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).
Applying this principle, the Karnataka High Court held that since the assessment order in the present case was passed by the Assessing Officer at Coimbatore, the Court did not have jurisdiction to entertain the appeal. Accordingly, the appeal was dismissed as not maintainable, with liberty granted to the appellant to file the appeal before the appropriate jurisdictional High Court.
Cases Discussed
- Principal Commissioner of Income-Tax vs. ABC Papers Ltd. (Supreme Court), [(2022) 141 taxmann.com 332 (SC)]
FULL TEXT OF THE JUDGMENT/ORDER OF KARNATAKA HIGH COURT
This appeal is filed under Section 260A of the Income Tax Act, 1961 questioning order dated 09.02.2026 in ITA.No.209/CHNY/2025 passed by the Income Tax Appellate Tribunal, ‘C’ Bench, Chennai (for short, ‘the Tribunal’).
2. On scrutiny of the appeal, the Registry has raised objections with regard to maintainability of ITA before this Court.
3. Heard learned senior standing counsel Sri.Y.V. Raviraj for appellants/Revenue.
4. Learned senior standing counsel Sri. Y.V. Raviraj submits that the present appeal was filed taking note of the fact that the assessee is at Bengaluru and further he submits that the assessment has taken place at Coimbatore, since the Centralization has taken place after consequent search.
5. From the appeal papers, it is seen that the assessment order in respect of the respondent/assessee is passed by the Assistant Commissioner of Income Tax, Central Circle-3, Coimbatore and the ITAT Order is passed by the ‘C’ Bench, Chennai. Therefore, the Registry has rightly raised office objections with regard to maintainability of ITA before this Court.
6. The Hon’ble Apex Court in the case of Principal Commissioner of Income-Tax vs. ABC Papers Ltd., [(2022) 141 taxmann.com 332 (SC)] while considering the identical situation, at paragraph 33 has held as follows:
“33. In conclusion, we hold that appeals against every decision of the ITAT shall lie only before the High Court within whose jurisdiction the Assessing Officer who passed the assessment order is situated. Even if the case or cases of an assessee are transferred in exercise of power under Section 127 of the Act, the High Court within whose jurisdiction the Assessing Officer has passed the order, shall continue to exercise the jurisdiction of appeal. This principles is applicable even if the transfer is under Section 127 for the same assessment year(s).”
7. The Hon’ble Apex Court in the above decision has made it clear that appeal against every decision of the ITAT shall lie only before the High Court within whose jurisdiction the Assessing Officer who passed the assessment order is situated.
8. In the instant case, the assessment order is passed by the Assistant Commissioner of Income Tax, Central Circle-3, Coimbatore. Hence, this Court would not get jurisdiction. Accordingly, appeal stands dismissed as not maintainable, with liberty to file appeal before appropriate jurisdictional High Court.
