In order to create a local ISO repository i.e one that is not residing on a network share but truly local you need the following.
Right lets get started. First check if the following directory exists.
/var/opt/xen/iso_import
If the above directory does not exists create it. Simply use mkdir like shown below.
mkdir -p /var/opt/xen/iso_import
Now transfer your ISO file to /var/opt/xen/iso_import by the means of scp.
Next we need to make the repository visible to XenCenter interface.
xe sr-create name-label="Local ISO" type=iso device-config:location=/var/opt/xen/iso_import/ device-config:legacy_mode=true content-type=iso
Note: You may experience that new ISO's uploaded my not show in XenCenter even after you tried to refresh the storage repository. If so just run the above command again.