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Commissioner Of Income Tax ... vs The Louis Berger Group Inc on 8 September, 2022

Author: Manmohan

Bench: Manmohan, Manmeet Pritam Singh Arora

                              $~1
                              *     IN THE HIGH COURT OF DELHI AT NEW DELHI
                              +     ITA 310/2022
                                    COMMISSIONER OF INCOME TAX (INTERNATIONAL
                                    TAXATION)-2                                 ..... Appellant
                                                Through: Mr.Sanjay Kumar, Sr.Standing
                                                         Counsel for the Revenue with
                                                         Ms.Easha Kadian, Advocate.
                                                versus

                                    THE LOUIS BERGER GROUP INC.                            ..... Respondent
                                                        Through:     None

                              CORAM:
                              HON'BLE MR. JUSTICE MANMOHAN
                              HON'BLE MS. JUSTICE MANMEET PRITAM SINGH ARORA
                                                        ORDER

% 08.09.2022 Present income tax appeal has been filed challenging the order dated 29th November, 2021 passed by the Income Tax Appellate Tribunal ('ITAT') in ITA No. 527/Hyd./2016 for the Assessment Year 2007-08.

Learned counsel for the Appellant states that the ITAT has erred in quashing the proceedings on the ground that reasons to believe are not in terms of first proviso to Section 147 of the Income Tax Act, 1961 ('the Act'). He states that the ITAT has erred in holding that reasons to believe should mention that there was failure on part of the assessee to furnish true and full material facts, without considering that there is no such requirement of law to bring the same in reasons to believe, as the provisions of Section 147 of the Act requires that the Assessing Officer should record his reasons to believe that income had escaped assessment.

A perusal of the paper book reveals that the Assessing Officer, who has passed the assessment orders, is based in Hyderabad.

Recently, the Supreme Court in Pr. Commissioner of Income Tax - I, Chandigarh vs. ABC Papers Limited, 2022 SCC OnLine SC 1036 has held as under:-

"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 exercise of power under Section 127 of the Act, the High Court within whose jurisdiction the Assessing Officer has passed the order, shall continue to exercise the jurisdiction of appeal. This principle is applicable even if the transfer is under Section 127 for the same assessment year(s)."

In view of the aforesaid judgment, this Court does not have the territorial jurisdiction to entertain the present appeal. Accordingly, the appeal is dismissed with liberty to the appellant to file an appeal in accordance with law in a court having territorial jurisdiction within twelve weeks. The rights and contentions of all the parties are left open.

MANMOHAN, J MANMEET PRITAM SINGH ARORA, J SEPTEMBER 8, 2022 KA Signature Not Verified Digitally Signed By:JASWANT SINGH RAWAT Signing Date:09.09.2022 20:09:44