ITO Vs Prominent Datamatics Marketing Pvt. Ltd. (ITAT Varanasi)
Appeal Not Maintainable Due to Lack of Territorial Jurisdiction — Jurisdiction Follows AO Who Passed Assessment Order
In ITO Ward-2(1), Varanasi v. Prominent Datamatics Marketing Pvt. Ltd. (ITA No. 135/VNS/2020 with CO No. 04/VNS/2021, AY 2017-18), the Income Tax Appellate Tribunal, Varanasi (Circuit Bench), dealt with a fundamental jurisdictional dispute arising from an assessment order passed by ITO Ward-5(2), Kolkata, while the first appeal was decided by CIT(A), Varanasi.
Due to a difference of opinion between the Judicial Member and the Accountant Member, the matter was referred to a Third Member. Relying heavily on the Supreme Court judgment in PCIT v. ABC Papers Ltd. (141 taxmann.com 332), the Third Member held that:
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Territorial appellate jurisdiction is determined solely by the location of the Assessing Officer who passed the assessment order, and
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Neither change of registered office nor PAN address nor subsequent transfer of jurisdiction alters appellate jurisdiction for challenges to that assessment order.
Since the assessment order was passed in Kolkata, the entire appellate chain (CIT(A), ITAT, High Court) must also lie within Kolkata jurisdiction. Consequently:
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ITAT Varanasi lacked jurisdiction to entertain the Revenue’s appeal as well as the assessee’s cross-objections.
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ITAT Varanasi could not even examine the validity of the CIT(A), Varanasi order, as it itself lacked territorial jurisdiction.
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All issues on merits (Section 69A additions, other payables, Rule 46A violations, etc.) were held to be purely academic and redundant.
Final Outcome:
