ITAT Mumbai Dismisses Revenue Appeals for Lack of Territorial Jurisdiction in Maharaja Builders Case

The “D” Bench of the Income Tax Appellate Tribunal, Mumbai, dismissed Revenue appeals in the case of Maharaja Builders Private Limited for Assessment Years 2016–17 and 2017–18 on the ground of lack of territorial jurisdiction.

Appeals Filed Before Wrong Bench

The Revenue had challenged relief granted by the CIT(A), Pune-12 in penalty proceedings under sections 271(1)(c) for AY 2016–17 and 270A for AY 2017–18. The penalty orders were passed by the Deputy Commissioner of Income Tax, Central Circle–1, Nashik. During hearing, the assessee raised a preliminary objection that Nashik falls within the territorial jurisdiction of the Pune Bench of the Tribunal. The Department fairly conceded this factual position. The Tribunal noted that under Section 253 of the Income-tax Act read with Rule 4(1) of the ITAT Rules, jurisdiction is determined by the location of the Assessing Officer who passed the order. Since the orders originated from Nashik, the Pune Bench alone had jurisdiction.

Liberty Granted to File Before Appropriate Bench

Relying on Supreme Court rulings clarifying that appellate jurisdiction depends on the Assessing Officer’s location and not administrative transfers, the Tribunal held that the Mumbai Bench lacked jurisdiction. Accordingly, the Revenue’s appeals were dismissed as not maintainable, with liberty to file before the appropriate Bench. The Cross Objections filed by the assessee were dismissed as withdrawn.