Appeals Dismissed for Jurisdictional Reasons at ITAT Kolkata

The appeals were dismissed for statistical purposes as not maintainable before ITAT Kolkata due to jurisdictional issues. The parties were given two months to approach ITAT Indore Bench. The President of ITAT does not have the power to transfer appeals between different headquarters. The order was pronounced in Kolkata on 13th July, 2023.

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Issues Involved:
1. Jurisdiction of the Tribunal
2. Transfer of Appeals
3. Validity of Appeals before ITAT Kolkata

Summary:

Jurisdiction of the Tribunal:
The core issue pertains to the jurisdiction of the Tribunal to hear the appeals. The assessment order was passed by the Assistant Commissioner of Income Tax, Circle-5(1), Indore, indicating that jurisdiction over the assessee lies in Indore. The appellate jurisdiction of the Tribunal, as well as the Hon'ble High Court, rests at Indore, as per the judgment of the Hon'ble Supreme Court in the case of Principal Commissioner of Income-tax vs. ABC Papers Ltd. and the Hon'ble Bombay High Court in the case of MSPL Limited vs. PCIT. The President of ITAT does not have the power to transfer appeals between different headquarters.

Transfer of Appeals:
The Tribunal examined the power of the President of ITAT under section 255 of the Income Tax Act and rule 4 of the Tribunal Rules. The Hon'ble Bombay High Court clarified that the President can only transfer appeals within the same headquarters and not to a different state or zone. The power to regulate its own procedure and the procedure of the Benches does not extend to transferring appeals across states. The Tribunal also noted that the convenience of the parties is not a valid ground for transferring cases out of a state.

Validity of Appeals before ITAT Kolkata:
The appeals were initially filed before the ITAT Kolkata Bench. However, as the jurisdiction lies in Indore, these appeals are deemed not maintainable before the ITAT Kolkata. The Tribunal observed that prior to the decision of the Hon'ble Bombay High Court, the President used to transfer appeals across Benches on request, but this practice has been recently clarified and restricted. Therefore, the parties are given two months to approach the ITAT Indore Bench, and the period consumed in litigating at Kolkata benches will be excluded from the period of limitation.

Conclusion:
In conclusion, the appeals were dismissed for statistical purposes as not maintainable before the ITAT Kolkata. The assessee and the revenue are at liberty to approach the competent authority at Indore. The order was pronounced in the Court on 13th July, 2023, at Kolkata.

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