Taxpayers who sought centralisation and participated in proceedings can’t later challenge jurisdiction transfer under Section 127.
Telangana HC: Participation in Proceedings Bars S. 127 Jurisdiction Challenge
The Telangana High Court has ruled that taxpayers who voluntarily requested centralisation of their case at Hyderabad and actively participated in assessment proceedings cannot later challenge the jurisdictional transfer under Section 127 of the Income Tax Act. The Court applied the doctrine of approbate and reprobate.
The petitioners had approached the Centralised Processing Centre (CPC) for assessment and engaged with notices, submissions, and hearings. Only after adverse findings emerged did they challenge the competence of the assessing authority, claiming lack of jurisdiction. The Court rejected this conduct as inconsistent and barred by equitable principles.
A party cannot accept the benefits of a statutory procedure and later deny its validity; such conduct vitiates the foundation of good faith in litigation.
This judgment reinforces the finality of jurisdictional choices made during assessments. Practitioners should advise clients that opting for centralised assessment constitutes acquiescence to jurisdiction, precluding future challenges even if the outcome becomes unfavorable.
Citations
- Section 127, Income Tax Act, 1961
