2025 (2) TMI 1680 - AT - Income Tax

Territorial jurisdiction of tax appeals depends on the Assessing Officer's location; appeal before the wrong bench was not maintainable.

The Tribunal's ordinary territorial jurisdiction depends on the situs of the Assessing Officer who framed the assessment. Where the assessment was ... Territorial jurisdiction of appellate forum - Situs of the Assessing Officer - Maintainability of appeal before wrong Bench - Jurisdiction to entertain the Revenue's appeal - territorial location of the Assessing Officer - HELD THAT: - The Tribunal held that, under the applicable standing orders governing ordinary jurisdiction, appellate jurisdiction is determined by the situs of the Assessing Officer. It noted that the later amendment conferring jurisdiction on the Panaji Bench extended, so far as Uttara Kannada District was concerned, only to Karwar Taluka. Since the assessment under challenge had been framed by the Income Tax Officer at Sirsi in Uttara Kannada District, the case fell outside the territorial jurisdiction of the Panaji Bench. Applying the settled position of law, including the principle stated by the Supreme Court in PCIT Vs ABC Paper Ltd. [2022 (8) TMI 863 - SUPREME COURT] Tribunal concluded that the appeal was not maintainable before it and that the proper forum was the Bangalore Bench. [Paras 5, 6, 7] The appeal was dismissed as not maintainable before the Panaji Bench, with liberty to institute it before the appropriate Bench having jurisdiction over the AO. Final Conclusion: The Tribunal held that it lacked territorial jurisdiction because the AO who passed the assessment order was situated at Sirsi, outside the jurisdiction assigned to the Panaji Bench. The Revenue's appeal was therefore dismissed as not maintainable, with liberty to file it before the competent Bench. Issues: Whether the appeal was maintainable before the Panaji Bench in view of the territorial jurisdiction linked to the location of the Jurisdictional Assessing Officer.Analysis: The ordinary jurisdiction of the Tribunal is determined by the situs of the Assessing Officer. The standing order governing territorial allocation confined the Panaji Bench to specified areas, and the assessment in question was framed by an officer situated at Sirsi in Uttara Kannada District, which fell outside that territorial range. The legal position was reinforced by the principle that the appellate forum is to be identified by the location of the Assessing Officer and not by any administrative transfer arrangement.Conclusion: The appeal was not maintainable before the Panaji Bench and could not be entertained.Final Conclusion: The Revenue's appeal failed on jurisdiction and was dismissed with liberty to approach the proper bench having territorial competence.Ratio Decidendi: The jurisdiction of the Income Tax Appellate Tribunal is governed by the territorial situs of the Assessing Officer who framed the assessment, and an appeal filed before a bench lacking such territorial nexus is not maintainable.