ITAT Delhi Dismisses Jaiprakash Associates Appeal for Lack of Territorial Jurisdiction

The “F” Bench of the Income Tax Appellate Tribunal, Delhi, dismissed the appeal filed by Jaiprakash Associates Ltd. for Assessment Year 2014–15. The appeal challenged a revisionary order passed by the Principal Commissioner of Income Tax under Section 263 of the Income-tax Act.

Appeal Filed Before Wrong Bench

During the hearing, none appeared on behalf of the assessee. With assistance from the Revenue, the Tribunal noted that the regular assessment order dated 20 December 2016 had been passed by the ACIT, Range-III, Lucknow. Under the Standing Order issued under the Income-tax (Appellate Tribunal) Rules, 1963, territorial jurisdiction of ITAT benches is determined by the “situs” of the Assessing Officer who passed the order. Since the Assessing Officer was based in Lucknow, the Delhi Bench did not have jurisdiction over the matter. The Tribunal also referred to the Supreme Court ruling in PCIT v. ABC Paper Ltd. (2022) 447 ITR 1, which affirmed that appellate jurisdiction depends on the location of the Assessing Officer.

Liberty Granted to File Before Proper Bench

In view of the lack of territorial jurisdiction, the Tribunal dismissed the appeal. However, it granted liberty to the assessee to file the appeal before the appropriate ITAT Bench having jurisdiction. Importantly, the Tribunal clarified that any delay caused due to filing before the wrong Bench would stand condoned. Accordingly, the appeal was dismissed for want of jurisdiction.