Territorial jurisdiction in TDS proceedings defeats an order passed by the wrong authority when the relevant jurisdiction lies elsewhere.

An order under sections 201(1) and 201(1A) was held unsustainable where the assessee's registered office had shifted to Gurgaon, the TDS returns were filed under the new TAN, and the record showed that the relevant TDS jurisdiction lay with Gurgaon. Because the Delhi TDS authority passed the order despite lacking territorial jurisdiction, the jurisdictional challenge succeeded and the order was declared invalid and void ab initio. The merits were not examined.

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Issues: Whether the order passed under section 201(1) and section 201(1A) was liable to be quashed for want of territorial jurisdiction.

Analysis: The assessee's registered office had shifted to Gurgaon, the TDS filings were made under the new TAN, and the material on record showed that the relevant TDS jurisdiction lay with Gurgaon. The order, however, had been passed by the Delhi TDS authority. As the jurisdictional position was not controverted, the order could not be sustained when passed by an authority lacking territorial jurisdiction.

Conclusion: The jurisdictional challenge succeeded and the impugned order was held invalid and void ab initio; the grounds on merits were not adjudicated.

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