Withdrawal of tax appeals granted with liberty to challenge tribunal orders before the jurisdictional High Court.

The Appellant, the Deputy Commissioner of Income Tax (Central), Nagpur, filed a series of tax appeals (TAXC No. 145/2025 and others) 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 sought to withdraw the current appeals to file them before the appropriate jurisdictional High Court.

Whether the Appellant should be permitted to withdraw the appeals filed before the High Court of Chhattisgarh with liberty to approach the jurisdictional High Court against the ITAT Nagpur's order.

The Court applied the principle of territorial jurisdiction and the procedural right of a party to withdraw litigation with "liberty" to refile in the correct forum.

Under the Income Tax Act, 1961, an appeal against an order of the ITAT lies to the High Court that exercises jurisdiction over the seat of the Tribunal or the assessing officer involved.

The Court noted that the Appellant specifically requested permission to withdraw the batch of appeals.

The stated reason for this withdrawal was the intention to approach the "jurisdictional High Court" to question the specific order passed by the ITAT Nagpur.

By granting this request, the Court recognized that the High Court of Chhattisgarh was likely not the appropriate forum to adjudicate an order arising from the Nagpur Bench of the ITAT, thereby allowing the Appellant to rectify the jurisdictional filing error without prejudice to their right to seek relief elsewhere.

Consequently, the appeals were dismissed as withdrawn, and the Court specifically granted the Appellant liberty to approach the jurisdictional High Court to challenge the order dated 26.12.2024.