Withdrawal of Tax Appeal Allowed with Liberty to Approach Jurisdictional High Court Against Tribunal Order.

The Appellant (Revenue Department) filed a series of Tax Appeals (TAXC Nos. 145, 148, 141, 150, 149, 143, 144, and 147 of 2025) before the High Court of Chhattisgarh at Bilaspur.

These appeals sought to challenge an order dated 26.12.2024 passed by the Income Tax Appellate Tribunal (ITAT), Nagpur.

During the proceedings, the counsel for the Appellant requested to withdraw the appeals to file them before the appropriate High Court having territorial jurisdiction over the ITAT Nagpur.

1. Whether the Appellant may be permitted to withdraw the present appeals with liberty to approach the jurisdictional High Court to challenge the order of the ITAT Nagpur.

The Court applied the principle of territorial jurisdiction specifically regarding appeals against orders of the Income Tax Appellate Tribunal under the Income Tax Act, 1961.

The rule dictates that an appeal against an ITAT order lies before the High Court within whose jurisdiction the assessing officer is located or where the tribunal bench passing the order is situated.

Furthermore, the Court exercised its discretionary power to grant "liberty to withdraw with leave to refile" in the correct forum.

The Court noted that the Appellant sought to withdraw the appeals because they were challenging an order passed by the ITAT Nagpur.

Since the subject matter fell under the geographical/legal purview of a different jurisdictional High Court (likely the Bombay High Court, given the Nagpur seat), the Appellant requested permission to move the correct forum.

The Court, finding the request reasonable and following the procedural necessity of ensuring the matter is heard by the court with competent territorial jurisdiction, granted the permission to withdraw.

The appeals were dismissed as withdrawn with the specific liberty to approach the jurisdictional High Court regarding the ITAT Nagpur order dated 26.12.2024.