Territorial jurisdiction error couldn't be ignored merely because it wasn't raised at time of hearing of appeal

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The assessee applied for registration under section 12AA. The CIT rejected the assessee’s application. Assessee challenged the rejection order before ITAT at Chandigarh. The ITAT directed the CIT to grant registration. In pursuance of the ITAT’s order registration was granted to the assessee.
The revenue moved a miscellaneous application stating that the order passed by the Chandigarh ITAT was without jurisdiction as the case fell within the jurisdiction of Amritsar Bench. The revenue’s application was dismissed.
On further appeal, the HC held that from the perusal of section 254(2), it was evident that there was an error apparent from record. The ITAT was empowered to amend the order passed under section 254. The undisputed fact that Chandigarh ITAT didn’t possess the jurisdiction to hear and decide the appeal is itself an error apparent from record. The same couldn’t be ignored merely on the ground that the issue of jurisdiction was not raised at the time of hearing of the appeal. Thus, the HC sent the matter to the Amritsar ITAT for deciding the appeal afresh.

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