PCIT Vs P.P. Enterprises (Karnataka High Court)
Karnataka HC: ITAT Appeal Lies Before High Court Having Jurisdiction Over AO Who Passed Assessment Order – Assessee’s Location Irrelevant
The Karnataka High Court dismissed the Revenue’s appeal u/s 260A as not maintainable for want of territorial jurisdiction. The Revenue had challenged an order of the Chennai ITAT, contending that the appeal was filed before the Karnataka High Court since the assessee was situated at Bengaluru.
The Court noted that the assessment order had been passed by ACIT, Central Circle, Coimbatore, while the appellate order was passed by the ITAT, Chennai Bench. Therefore, the fact that the assessee was located at Bengaluru did not confer jurisdiction upon the Karnataka High Court.
Relying upon the Supreme Court decision in PCIT v. ABC Papers Ltd , the High Court reiterated that an appeal against an ITAT order lies only before the High Court within whose territorial jurisdiction the Assessing Officer who passed the assessment order is situated. This principle continues to apply even where the assessee’s case has been transferred under Section 127.
Since the assessment in the present case was passed by the ACIT, Central Circle-3, Coimbatore, the Karnataka High Court held that it had no jurisdiction to entertain the Section 260A appeal. The appeal was accordingly dismissed as not maintainable, while granting liberty to the Revenue to approach the appropriate jurisdictional High Court.
Key takeaway: For determining the jurisdictional High Court under Section 260A, the decisive factor is the location of the AO who passed the assessment order-not the assessee’s residence, registered office, or subsequent transfer of the case.
Cases Discussed
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.2530/CHNY/2024 passed by the Income Tax Appellate Tribunal, ‘C’ Bench, Chennai (for short, ‘the Tribunal’).
