TMI Blog2019 (3) TMI 676X X X X Extracts X X X X X X X X Extracts X X X X ..... uation, both the Courts have held that it would be the Court which exercises jurisdiction over the seat of the Tribunal which passed the order which would have jurisdiction. Our view is in consonance with the views of the Hon'ble Punjab Haryana High Court in Motorola [2007 (10) TMI 384 - PUNJAB HARYANA HIGH COURT] and JL. MORRISON (INDIA) LTD. [2004 (6) TMI 17 - CALCUTTA HIGH COURT] Therefore, in the present facts, we uphold the preliminary objections of the respondent. We hold that this Court does not have jurisdiction to entertain appeals under Section 260A of the Act in respect of order dated 30th July, 2015 passed by the Bangalore bench of the Tribunal. Thus, this appeal is not maintainable before this Court. - Income Tax Appeal No. 1142 of 2016 - - - Dated:- 26-2-2019 - AKIL KURESHI M.S. SANKLECHA, JJ. Mr. Tejveer Singh for the Appellant Mr. R. Murlidhar i/by P.C. Tripathi for the Respondent ORAL JUDGMENT (Per M.S. Sanklecha, J.) 1. This appeal under Section 260 A of the Income Tax Act, 1961 ( the Act for short), challenges the order dated 30.7.2015 passed by the Income Tax Appellate Tribunal, Banglore Bench, Banglore ( the Tribuna ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h before and after the transfer, also stands transfered to the Assessing Officer at Pune by virtue of the explanation thereto. Therefore, in terms thereof, all proceeding under the Act stand transferred to the transferee Assessing Officer at Pune, even in respect of cases where assessments are already completed; and (c). In any case, the issue now stands settled in favour of the Revenue by the decisions of the Delhi High Court in CIT Vs. Sahara India Financial Corp. Ltd. 294 ITR 363 (Delhi) and CIT Vs. AAR Bee Industries 357 ITR 542 (Delhi). In both the above cases, on identical fact situation, the Court held that consequent to transfer of the assessment proceedings under Section 127 of the Act, the orders of the Tribunal under Section 260A of the Act are to be challenged at the place where the transferee Assessing Officer exercises jurisdiction. In the case of Sahara India Financial Corp Ltd (supra) a transfer under Section 127 of the Act, the Assessment Proceedings were transferred from Lucknow to Delhi. The Court held that in such case, appeal from Lucknow bench of the Tribunal would be before the Delhi High Court. Similarly, in case of transfer of assessment proceeding u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e context of the Assessment Proceedings having been transferred under Section 127 of the Act from Bangalore to Pune. 8 Chapter XIII of the Act deals with the Income Tax Authorities. Sections 116, 120, 124 and 127 of the Act are part of Chapter XIII of the Act. Section 116 of the Act lists out the Income Tax Authorities under the Act and is as under:- Income-tax Authorities. 116. There shall be the following classes of income-tax authorities for the purposes of this Act, namely :- (a) the Central Board of Direct Taxes constituted under the Central Boards of Revenue Act, 1963 (54 of 1963), (aa) Principal Directors General of Income-tax or Principal Chief Commissioners of Income-tax, (b) Directors-General of Income-tax or Chief Commissioners of Income-tax, (ba)Principal Directors of Income-tax or Principal Commissioners of Income-tax, (c) Directors of Income-tax or Commissioners of Income-tax or Commissioners of Income-tax (Appeals), (cc)Additional Directors of Income-tax or Additional Commissioners of Income-tax or Additional Commissioners of Income-tax (Appeals), (cca)Joint Directors of Income-tax or Joint Commissioners of Income-tax, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oner to issue orders in writing that the powers and functions conferred on, or as the case may be, assigned to, the Assessing Officer by or under this Act in respect of any specified area or persons or classes of persons or incomes or classes of income or cases or classes of cases, shall be exercised or performed by [an Additional Commissioner or] [an Additional Director or] a [Joint] Commissioner [or a [Joint] Director], and, where any order is made under this clause, references in any other provision of this Act, or in any rule made thereunder to the Assessing Officer shall be deemed to be references to such [Additional Commissioner or] [Additional Director or] [Joint] Commissioner [or [Joint] Director] by whom the powers and functions are to be exercised or performed under such order, and any provision of this Act requiring approval or sanction of the [Joint] Commissioner shall not apply. (5) The directions and orders referred to in sub-sections (1) and (2) may, wherever considered necessary or appropriate for the proper management of the work, require two or more Assessing Officers (whether or not of the same class) to exercise and perform, concurrently, the powers and fun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... [Principal Directors General or] Directors General or [Principal Chief Commissioners or] Chief Commissioners or [Principal Commissioners or] Commissioners, by the [Principal Directors General or] Directors General or [Principal Chief Commissioners or] Chief Commissioners or [Principal Commissioners or] Commissioners concerned or, if they are not in agreement, by the Board or by such [Principal Director General or] Director General or [Principal Chief Commissioner or] Chief Commissioner or [Principal Commissioner or] Commissioner as the Board may, by notification in the Official Gazette, specify. (3) No person shall be entitled to call in question the jurisdiction of an Assessing Officer- (a) where he has made a return [under sub-Section (1) of Section 115WD or] under sub-Section (1) of Section 139, after the expiry of one month from the date on which he was served with a notice under sub-Section (1) of Section 142 or [sub-Section (2) of Section 115WE or] sub-Section (2) of Section 143 or after the completion of the assessment, whichever is earlier; (b) where he has made no such return, after the expiry of the time allowed by the notice under [sub-Section (2) of Sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ef Commissioner or] Chief Commissioner or [Principal Commissioner] or Commissioner,- (a) where the [Principal Directors General or] Directors General or [Principal Chief Commissioners or] Chief Commissioners or [Principal Commissioners or] Commissioners to whom such Assessing Officers are subordinate are in agreement, then the [Principal Director General or] Director General or [Principal Chief Commissioner or] Chief Commissioner or [Principal Commissioner or] Commissioner from whose jurisdiction the case is to be transferred may, after giving the assessee a reasonable opportunity of being heard in the matter, wherever it is possible to do so, and after recording his reasons for doing so, pass the order; (b) where the [Principal Directors General or] Directors General or [Principal Chief Commissioners] or Chief Commissioners or [Principal Commissioners or] Commissioners aforesaid are not in agreement, the order transferring the case may, similarly, be passed by the Board or any such [Principal Director General or] Director General or [Principal Chief Commissioner or] Chief Commissioner or [Principal Commissioner or] Commissioner as the Board may, by notification in the Of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... may admit an appeal after the expiry of the period of one hundred and twenty days referred to in clause (a) of sub-section (2), if it is satisfied that there was sufficient cause for not filing the same within that period. (3) Where the High Court is satisfied that a substantial question of law is involved in any case, it shall formulate that question. (4) The appeal shall be heard only on the question so formulated, and the respondents shall, at the hearing of the appeal, be allowed to argue that the case does not involve such question : Provided that nothing in this sub-section shall be deemed to take away or abridge the power of the court to hear, for reasons to be recorded, the appeal on any other substantial question of law not formulated by it, if it is satisfied that the case involves such question. (5) The High Court shall decide the question of law so formulated and deliver such judgment thereon containing the grounds on which such decision is founded and may award such cost as it deems fit. (6) The High Court may determine any issue which- (a) has not been determined by the Appellate Tribunal; or (b) has been wrongly determined by the Appella ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ses of income and cases or classes of cases. Section 124 of the Act deals with jurisdiction of the Assessing Officers, inter alia, with regard to the assessment of the parties. Section 127 of the Act deals with transfer of jurisdiction of assessment from one assessing officer to another. This power to transfer jurisdiction of assessment proceedings (cases) is with regard to transferring the assessment proceedings from one Assessing Officer to another subject to the satisfaction of the conditions mentioned therein. 11. The bare reading of the above provisions will establish that Chapter XIII of the Act would be applicable only to the Income Tax Authorities under the Act as listed out in Section 116 thereof. Thus, it follows that the provisions of Section 120, 124 and 127 of the Act will also apply only to the Authorities listed in Section 119 of the Act. The Tribunal and the High Court are not listed in Section 116 of the Act as Income Tax Authorities under the Act. Therefore, Sections 124 and 127 of the Act being relied upon by the Revenue can have no bearing while dealing with the issue of which High Court will have jurisdiction over the orders of the Tribunal. 12. The juris ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee but by the location of the office of the Assessing Officer. If the seat of the Assessing Officer were in terms of Section 127 of the Act, to govern/ control the jurisdiction of the Authorities other than those listed in Section 116 of the Act, then a specific provision in terms of Note 4 in the standing order issued by the President of the Tribunal was not called for / required. Thus in terms, the above standing order where an assessment proceedings have been transferred from one place to another under Section 127 of the Act, then the bench of the Tribunal before which appeals would lie, may shift with the seat of the Assessing Officer before the filing/ hearing of the appeal. Moreover, it is important to note that, the Bombay High Court Rules while providing for appeals from the Tribunal does not specifically exclude its jurisdiction in case of orders passed by the Tribunal at Mumbai or provide for the court entertaining appeals dependent upon the seat of the Assessing Officer at the time of filing the appeal. In fact, the inter se, distribution of Appeals between the different benches of this court is on the basis from where an appeal originated. Therefore, the Appellate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the various provisions of law would require that the appeal from the order of the Tribunal is to be filed to the Court which exercises jurisdiction over the seat of the Tribunal. 15. In this case, the Karnataka High Court exercises jurisdiction over the Banglore bench of the Tribunal which has passed the impugned order dated 30th July, 2015. However, it may be pointed that Explanation to Section 127 of the Act states that once a direction has been issued therein in respect of the case i.e. Section 127 of the Act, then all Assessment proceedings under the Act in respect of any year which may be pending on the date of such order or which have been completed on or before such date would stand transferred to the transferee assessing officer. The words all proceedings under this Act would not cover appeals under the Act before the High Court as it would run counter to Section 260A and 269 of the Act which provides specifically for the High Court which would have jurisdiction over the orders of the Tribunal. Thus, the words all proceedings under this Act have to be harmoniously read with the other provisions of the Act and have to be restricted only to the proceedings under the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o-ordinate bench in the case of Sahara India Financial Services (supra) to hold that Section 127 of the Act will govern/ decide the Court which will exercise jurisdiction in respect of appeals from the order of the Tribunal. We respectfully disagree with the above view of the Delhi High Court. In our view, Section 127 of the Act can only govern / control the jurisdiction of the Income Tax Authorities as defined in Section 116 of the Act. Therefore, the appeals from the order of the Tribunal to the High Court would be governed by section 260-A and 269 of the Act. 17. We note that Punjab Haryana High Court in Motorola India Ltd (supra) has examined the identical issue and on examination of Section 127 of the Act, it held as under:- 14. A conjoint reading of the aforementioned provisions makes it evident that the Director General or Chief CIT or CIT is empowered to transfer any case from one or more AOs subordinate to him to any other AO. It also deals with the procedure when the case is transferred from one AO subordinate to a Director General or Chief CIT or CIT to an AO who is not subordinate to the same Director General, Chief CIT or CIT. The aforementioned situati ..... X X X X Extracts X X X X X X X X Extracts X X X X
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