Pr. Commissioner of Income Tax – I, Chandigarh vs M/s. Abc Papers Limited

Court

Supreme Court of India

Date

18 August 2022

Case No.

Civil Appeal No. 4252 of 2022

Result

Disposed

Bench

Uday Umesh Lalit, S. Ravindra Bhat, Pamidighantam Sri Narasimha

Citation

[2022] 17 S.C.R. 1058 : 2022 INSC 844

Headnote

IncomeTax Act, 1961– ss.260A, 127– Appellate jurisdiction of the High Courts u/s.260A against judgments of Income Tax Appellate Tribunals – Jurisdiction of the High Court consequent upon administrative order of transfer of a ‘case’ u/s.127from one Assessing Authority to another Assessing Officer located in a different State – Held: 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 u/s.127, the High Court within whose jurisdiction the Assessing Officer has passed the order, shall continue to exercise the jurisdiction of appeal – This principle is applicable even if the transfer is u/s.127 for the same assessment year(s) – Jurisdiction of a High Court is not dependent on the location of the ITAT, as sometimes a Bench of the ITAT exercises jurisdiction over plurality of states.

Precedent – Held: Binding nature of decisions of an appellate court established under a statute on subordinate courts and tribunals within the territorial jurisdiction of the State, is a larger principle involving consistency, certainty and judicial discipline, and it has a direct bearing on the rule of law – This ‘need for order’ and consistency in decision making must inform our interpretation of judicial remedies.

CIT v. Sahara India Financial Corporation Ltd. (2007)

294 ITR 363 (Del); CIT v. Aar Bee Industries Ltd. (2013)

357 ITR 542 (Del) – overruled.

Seth Banarsi Dass Gupta v. Commissioner of Income Tax (1978) 113 ITR 817 (Del); Commissioner of Income ABC PAPERS LTD.

Tax v. Motorola India Ltd. (2010) 326 ITR 156 (P&H); Commissioner of Income Tax (Central), Gurgaon v. M/s Parabolic Drugs Limited ITA No. 49 of 2012 (P&H); Ajay Gandhi v. B Singh (2004) 2 SCC 120: 2004 (1) SCR 164; The President, Income Tax Appellate Tribunal v. A Kalyanasundaram (2005) 279 ITR 305 (Mad); Suresh Desai & Associates v. Commissioner of Income Tax; (1998) 230 ITR 912 (Del); Birla Cotton Spinning and Weaving Mills Ltd. v. Commissioner of Income Tax (1980) 123 ITR 354 (Del); Commissioner of Income Tax v. Digvijay Chemicals Ltd. (2007) 294 ITR 359 (Del); CIT v. Parke Davis (India) Ltd (1999)

239 ITR 820 (AP) – referred to.

The Judgment of the Court was delivered by PAMIDIGHANTAM SRI NARASIMHA, J. 1. These appeals give rise to an important question concerning appellate jurisdiction of the High Courts under Section 260A of the Income Tax Act, 19611 against judgments of Income Tax Appellate Tribunals2.As Benches of the ITAT are constituted to exercise jurisdiction hereinafter referred to as ‘the Act’. hereinafter referred to as ‘ITAT’ / ‘Tribunals’. over more than one state, each state having a separate High Court,question arose as to which of the High Court is the appropriate Court for filing appeals under Se

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