Appeal Admitted on Territorial Jurisdiction Issues in Tax Matters; Validity of Assessment Order Questioned.

The HC admitted the appeal, focusing on the ITAT's decision to quash the Assessment Order due to territorial jurisdiction issues. The Court questioned the validity of the Assessment Order, given the PAN's location with a specific ITO in Kolkata. The Court also examined the procedural validity of raising jurisdictional challenges post the time limit in Section 124(3) of the IT Act, 1961. The appellant was directed to submit informal paper books, and notice was served on the respondent. The appeal was scheduled for listing after twelve weeks, emphasizing territorial jurisdiction's significance and procedural compliance in tax matters.

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Issues involved:
1. Territorial jurisdiction of the Assessing Officer in quashing the Assessment Order.
2. Entertaining plea of territorial jurisdiction after the lapse of time limit specified in the Income Tax Act.

Analysis:
1. The High Court admitted the appeal based on substantial questions of law. The first issue revolves around the ITAT's decision to quash the Assessment Order due to lack of territorial jurisdiction. The Court questioned whether the ITAT erred in allowing the assessee's appeal without considering that the PAN was with a specific ITO in Kolkata during the relevant period. The key concern was whether the Assessment Order was valid despite the territorial jurisdiction issue raised by the ITAT.

2. The second issue raised in the appeal pertains to the plea of territorial jurisdiction brought before the Tribunal. The Court deliberated on whether such a plea could be entertained after the expiration of the time limit specified in Section 124(3) of the Income Tax Act, 1961, and in light of Section 292BB. The focus was on the procedural aspect of entertaining jurisdictional challenges post the specified time limit, emphasizing the legal framework's applicability in such scenarios.

The Court directed the appellant to submit informal paper books containing all relevant documents within a specified timeframe. Notice of the appeal was ordered to be served on the respondent, who was not represented by counsel. Formalities were dispensed with, and the appeal was scheduled for listing after twelve weeks. Additionally, a stay application was closed, and an affidavit of service was recorded in the Court. The judgment highlighted the importance of territorial jurisdiction and procedural compliance in income tax matters, setting the stage for a detailed examination of these critical legal aspects in the forthcoming proceedings.

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