Revenue appeal dismissed for wrong jurisdiction as assessment made in Haryana not Kolkata bench territory

The ITAT Kolkata dismissed the revenue's appeal due to improper jurisdiction. The assessment order was passed by AO at Jagadhri, Haryana, which falls outside Kolkata bench jurisdiction. Citing SC precedent in PCIT v. ABC Papers Ltd., the appropriate HC for appeals is where the AO assessed the case. The ITAT noted that under section 255(5) and (6), the President cannot transfer pending appeals between benches in different states. The appeal was dismissed with liberty to revenue to file fresh appeal before appropriate ITAT bench with jurisdiction over the assessee, along with condonation of delay petition.

---

---

Issues Involved:
1. Acceptance of explanation by CIT(A) regarding seized documents.
2. Relevance of seized documents to the assessee.
3. Opportunity for AO to examine the explanation on seized documents.
4. Validity of assessment due to non-service of notice u/s 153A and 143(2).
5. Jurisdiction of the appeal.

Summary:

1. Acceptance of Explanation by CIT(A) Regarding Seized Documents:
The Revenue contended that the CIT(A) erred in accepting the explanation furnished by the assessee regarding seized documents without giving reason, ignoring the fact that the same explanation was not accepted during the search and no such explanation was filed before the AO during assessment proceedings.

2. Relevance of Seized Documents to the Assessee:
The Revenue argued that the CIT(A) erred in believing the explanations of the assessee that the seized papers were not related to him, ignoring the fact that these documents were found and seized from the possession of the assessee during the search, violating Section 292C of the Income-tax Act.

3. Opportunity for AO to Examine the Explanation on Seized Documents:
The Revenue claimed that the CIT(A) erred in accepting the explanation of the assessee on seized documents that were not furnished before the AO without giving the AO an opportunity to examine the same under Section 292C and furnish his comments.

4. Validity of Assessment Due to Non-Service of Notice u/s 153A and 143(2):
The assessee raised additional issues under Rule 27 of the ITAT Rules, arguing that the assessment was invalid due to the non-service of notice u/s 153A and 143(2) and that the service of notice by affixture was invalid in law, making the entire assessment order liable to be quashed.

5. Jurisdiction of the Appeal:
The Tribunal noted that the assessment order was passed by the AO located at Jagadhri in the office of Dy. Commissioner of Income-tax, Circle Yamuna Nagar (Haryana). Referring to the Supreme Court decision in PCIT Vs. ABC Papers Ltd. (2022) and the Bombay High Court decision in MSPL Ltd. Vs. PCIT & Ors, the Tribunal concluded that the appeal was filed under improper jurisdiction as the assessment order was passed by the AO in Haryana, which does not fall within the jurisdiction of ITAT, Kolkata benches.

Conclusion:
The Tribunal dismissed the appeal due to improper jurisdiction, granting the Revenue liberty to file a fresh appeal before the appropriate bench of the Tribunal having jurisdiction over the assessee, along with a petition for condonation of delay. The period exhausted due to the current appeal's filing and disposal may be considered for condonation of delay in the fresh appeal.

Order Pronounced:
The order was pronounced in the open court on 06th September, 2023.

---