Appeal to High Court: Section 260Aa: Territorial jurisdiction: Order of Tribunal passed within the jurisdiction: Appeal lies to that High Court:

Revenue preferred appeals against the orders of the Gauhati Bench of the Tribunal before the Gauhati High Court. The issue in those cases was covered in favour of the assessee by the judgment of the Gauhati High Court in CIT vs. Meghalaya Steels Ltd.; (2013) 356 ITR 235 (Gauhati). The learned Solicitor General appearing on behalf of the Revenue contended that the orders, which were impugned before the learned Tribunal, were orders passed by the Assessing Officer in the State of Meghalaya and, hence, this court does not have the territorial jurisdiction to decide the appeals.

The Gauhati High Court dismissed the appeals filed by the Revenue following its decision in the case of Meghalaya Steel Ltd. and held as under:“

i) U/s. 20 of the Code of Civil Procedure, 1908, suits are to be instituted, where the defendents reside or where a cause of action, wholly or in part, arises. An appeal is nothing but an extension of a suit. Hence, a place where the cause of action, wholly or in part arises, is the legal venue for institution of an appeal under the Income-tax Act, 1961.

ii) The orders challenged in this set of appeals had been passed within the local limits of the territorial jurisdiction of the court and, hence, the court had the jurisdiction to try the appeals.”