2009 (2) TMI 892 - HC - Income Tax

Appellate Tribunal Must Address Jurisdiction Issue Even if Order Rejected

M/s. Skol Breweries Ltd. Versus The Assistant Commissioner of Income Tax

M/s. Skol Breweries Ltd. Versus The Assistant Commissioner of Income Tax - TMI Issues involved: Jurisdiction of the Appellate Tribunal to consider the issue of jurisdiction u/s 147 of the Income Tax Rules.Summary:Issue 1: Jurisdiction of the Appellate TribunalThe assessee approached the High Court with questions regarding jurisdiction as per the appeal memo. The Court emphasized that even if the order on Cross Objections was rejected, the Tribunal was bound to address the issue of jurisdiction as per Rule 27 of the Appellate Tribunal Rules, 1961. The assessee contended that the re-opening of assessment u/s 147 was without jurisdiction, which was rejected by the C.I.T. (Appeals) but held in favor of the assessee on merits. The Tribunal refused to consider the jurisdiction issue after rejecting the cross objections, but reversed the C.I.T. (Appeals) order on merits.Issue 2: Right to Raise Jurisdiction IssueThe High Court held that the issue of jurisdiction can be raised before any forum even without filing Cross Objections. Lack of jurisdiction can be challenged in the same proceedings or collateral proceedings if the order is deemed null at law. The Court emphasized that a lack of jurisdiction cannot be cured by consent of parties or non-raising of the issue initially. The Appellant was entitled to support the order on grounds decided against him, including jurisdiction, as per the Rules.Conclusion:The High Court set aside the entire order and remanded the matter back to the Tribunal for fresh consideration according to law. The Tribunal was directed to decide the jurisdiction issue based on existing materials without introducing new evidence unless proper procedures were followed.