Pamidighantam Sri Narasimha JUDGMENT
Pamidighantam Sri Narasimha, J.
1. These appeals give rise to an important question concerning appellate jurisdiction of the High Courts Under Section 260A of the Income Tax Act, 19611 against judgments of Income Tax Appellate Tribunals2. As Benches of the ITAT are constituted to exercise jurisdiction over more than one state, each state having a separate High Court, question arose as to which of the High Court is the appropriate Court for filing appeals Under Section 260A. The question arose because Section 260A is open-textual and does not specify the High Court before which an appeal would lie in cases where Tribunals operated for plurality of States. This question came to be conclusively answered by the High Court of Delhi in the case of Seth Banarsi Dass Gupta v. Commissioner of Income Tax MANU/DE/0278/1978 : (1978) 113 ITR 817 (Del), wherein it was held that the appropriate High Court would be the one where the Assessing Authority is situated. This judgment continuous to hold the field.
2. In these appeals, a further question that arise for consideration is the jurisdiction of the High Court consequent upon administrative order of transfer of a 'case' Under Section 127 of the Act from one Assessing Authority to another Assessing Officer located in a different State. The Punjab & Haryana High Court took the view that such a transfer would not change the principle laid down in Seth Banarasi Dass Gupta. However, the Delhi High Court in CIT v. Sahara India Financial Corporation Ltd. MANU/DE/7976/2007 : (2007) 294 ITR 363 (Del) and CIT v. Aar Bee Industries Ltd. MANU/DE/1817/2013 : (2013) 357 ITR 542 (Del) has taken a different view. The Delhi High Court held that an administrative order of transfer of cases will also have the consequence of transferring even the jurisdiction of the High Court. As there is a difference of opinion between the High Court of Punjab & Haryana on the one hand and the High Court of Delhi on the other, we are called upon to determine and declare the appropriate High Court for filing an appeal in such cases.
3. Having considered the matter in detail, and while reversing the judgments of the Delhi High Court in Sahara and Aar Bee, we have also held that the appellate jurisdiction of the High Court stands on its own foundation and cannot be subject to the exercise of executive power to transfer a 'case' from one Assessing Officer to an........