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
- Principal Commissioner of Income-Tax vs. ABC Papers Ltd (SC), (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.2530/CHNY/2024 passed by the Income Tax Appellate Tribunal, ‘C’ Bench, Chennai (for short, ‘the Tribunal’).
2. On scrutiny of the appeal, the Registry of this Court 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 objection 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., 1(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).”
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.
7. 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.
8. Registry is directed to return certified copy of the ITAT order in ITA.No.2530/CHNY/2024 dated 09.02.2026, on furnishing Xerox copy of the same.
