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

The Department (Appellant) preferred multiple tax appeals (TAXC) against common orders passed by the Income Tax Appellate Tribunal (ITAT), Nagpur, dated 26.12.2024.

During the hearing before the High Court of Chhattisgarh, the Appellant realized that the impugned orders originated from the ITAT Nagpur Bench.

Consequently, the Appellant sought to withdraw the appeals to file them before the appropriate High Court having territorial jurisdiction.

Whether the High Court of Chhattisgarh can grant liberty to the Appellant to withdraw the present tax appeals and approach the jurisdictional High Court questioning the order of the ITAT Nagpur Bench.

The Court applied the principle of territorial jurisdiction as governed by the Income Tax Act, 1961, and the Code of Civil Procedure, 1908.

Under Section 260A of the Income Tax Act, an appeal lies to the High Court from every order passed in appeal by the Appellate Tribunal; however, such an appeal must be filed before the High Court within whose jurisdiction the specific bench of the Tribunal is situated or where the Assessing Officer is located.

The Court noted the Appellant's request to withdraw the eight connected appeals.

The request was based on the fact that the impugned order being challenged was passed by the ITAT, Nagpur Bench, which falls outside the territorial jurisdiction of the Chhattisgarh High Court.

The Court found merit in the request for withdrawal with liberty to approach the "jurisdictional High Court," thereby acknowledging that the proper forum for these appeals lies elsewhere.

The Court specifically granted liberty to the Appellant to approach the jurisdictional High Court to challenge the ITAT Nagpur order dated 26.12.2024.