2019 (8) TMI 464 - HC - Income Tax

High Court clarifies jurisdiction for Tax Appeals; Tribunal's location key.

PR. COMMISSIONER OF INCOME TAX-4, AHMEDABAD Versus U.B. COTTON PVT LTD.

The Gujarat High Court held that the Tax Appeal challenging the Income Tax Appellate Tribunal's order was not maintainable before it, as jurisdiction lies ... Maintainability of appeal - Bogus expenditure u/s 69C - HELD THAT:- In view of M/S. SUNGARD SOLUTIONS (I) PVT LTD [2019 (3) TMI 676 - BOMBAY HIGH COURT] we are of the view that this appeal is not maintainable before this Court. The Revenue should challenge the order passed by the Income Tax Appellate Tribunal, Mumbai Bench before the High Court of Bombay. Issues:1. Jurisdiction of the High Court to hear appeals from orders passed by the Tribunal.2. Maintainability of the Tax Appeal before the Gujarat High Court.Jurisdiction of the High Court to hear appeals from orders passed by the Tribunal:The case involved a Tax Appeal under Section 260A of the Income Tax Act, 1961 challenging the order passed by the Income Tax Appellate Tribunal, Mumbai Bench. The Revenue raised substantial questions of law related to various additions and deletions in the assessment year 2007-08. The questions included issues like bogus expenditure, disallowance of payments, and lack of evidence for certain expenses. However, a preliminary objection was raised regarding the maintainability of the appeal before the Gujarat High Court. Citing a recent decision of the Bombay High Court, it was argued that the jurisdiction of the Court hearing appeals from the Tribunal is governed by Chapter XX of the Act, specifically Section 260A and 269. The High Court referred to in Section 260A is the High Court as defined in Section 269, which is the High Court of the State where the Tribunal is situated. Therefore, the appeal should be filed in the High Court having jurisdiction over the place where the Tribunal is located.Maintainability of the Tax Appeal before the Gujarat High Court:The High Court of Gujarat, considering the precedent set by the Bombay High Court, ruled that the appeal was not maintainable before the Gujarat High Court. The order passed by the Income Tax Appellate Tribunal, Mumbai Bench should be challenged before the High Court of Bombay. As a result, the Tax Appeal was disposed of without delving into the merits of the questions of law proposed by the Revenue. The decision allowed the Revenue the liberty to approach the High Court of Bombay for further proceedings. The judgment emphasized the importance of jurisdiction and the correct forum for challenging orders passed by the Tribunal, ensuring adherence to the provisions of the Income Tax Act for appeals.This detailed analysis highlights the issues of jurisdiction and maintainability of the Tax Appeal before the Gujarat High Court, providing a comprehensive understanding of the legal complexities involved in the judgment.