AI Drafter 
TaxTMI 
TaxTMI 
2023 (10) TMI 702
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....ated 06.12.2022 passed by the Income Tax Appellate Tribunal 'D' Bench, Chennai, in I.T.A.No. 461/Hyd/2017, relating to the assessment year 2012-13, by raising the following substantial questions of law: "1. Whether in the facts and circumstances of the case, the Tribunal was correct in holding that adjustment to the Arm's Length Price is required to be made in respect of receivables of the appellant from its associated enterprises in respect of services provided by it? 2. Whether in the facts and circumstances of the case, the Tribunal was correct in holding that the delay in realisation of outstanding receivables from AE is an international transaction covered under capital financing in view of the amendment t....
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....0/- and also furnished the transfer pricing report in Form 3CEB under section 92E of the Income Tax Act, 1961 (in short, "the Act"). During the course of assessment proceedings, a reference was made to the Transfer Pricing Officer under section 92CA of the Act for determination of the arm's length, with respect to the international transactions entered into by the appellant for the assessment year in question. Pursuant to the same, the TPO after making adjustments in respect of the international transactions of the appellant with its AE, determined the arms length price in respect of receivables at Rs.4,33,85,272/- considering the interest rate at 14.75% by order dated 29.01.2016 under section 92CA of the Act. Thereafter, the jurisdicti....
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....., DCIT, Hyderabad, on 28.11.2012. Since the appellant made certain international transactions, reference was made to TPO at Hyderabad and based on the order of the TPO, the draft assessment order came to be passed by the assessing officer. Subsequently, the appellant filed objections before the Dispute Resolution Panel at Hyderabad, which passed directions, resulting in passing of the final assessment order dated 23.12.2016 by the jurisdictional assessing officer. Thus, it is evident that all the assessment proceedings from initiation to completion in respect of the appellant company for the assessment year in question, were done by the authorities at Hyderabad. Even the appellant challenged the final assessment order dated 23.12.2016 by f....
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....ent of the law. It is also important to note that the decisions of the High Court in whose jurisdiction the transferee Assessing Officer is situated do not bind the Authorities or the ITAT which had passed orders before the transfer of the case has taken place. This creates an anomalous situation, as the erroneous principle adopted by the authority or the ITAT, even if corrected by the High Court outside its jurisdiction, would not be binding on them. 35. The legal structure under the Income Tax Act commencing with Assessing Officer, the Commissioner of Appeals, ITAT and finally the High Court under Section 260A must be seen as a lineal progression of judicial remedies. Culmination of all these proceedings in question of law jurisd....
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....l forum, without the intervention of a Court of law is against the independence of judiciary. This is true, particularly, when such a transfer can occur in exercise of pure executive power. This is a yet another reason for rejecting the interpretation adopted in the case of Sahara. 37. For the reasons stated above, we hold that the decision of the High Court of Delhi in Sahara and Aar Bee do not lay down the correct law and therefore, we overrule these judgments. 38. In conclusion, we hold that appeals against every decision of the ITAT shall lie only before the High Court within whose jurisdiction the Assessing Officer who passed the assessment order is situated. Even if the case or cases of an assessee are transferred in....
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.... appeal before the appropriate High Court where the Assessing Officers exercised jurisdiction. However, we are reiterating for clarity and certainty that the jurisdiction of a High Court is not dependent on the location of the ITAT, as sometimes a Bench of the ITAT exercises jurisdiction over plurality of states." Thus, it is clear from the above that as per section 127 of the Act read with section 260A of the Act and also from the order of the Hon'ble Apex Court cited supra, more particularly, para no.38, the High Court, under whose jurisdiction the assessing officer has passed the order, will have the jurisdiction to entertain the appeal. 7. In the light of the above legal position and also taking note of the factual matrix, we ....