Ita/100058/2016 Of The Pr. Commissioner Of Income Tax v. M/S Pragathi Gramina Bank

IN THB HIGH COURT OF KARNATAKA|DHARWAD BRENCH DATEKED THIS THE DAY OF FEBRUARY, 2018. PRESENT THR HON’BLE MRS. JUSTICE S. SUJATHA AND THR HON’BLE MR. JUSTICK JOHN MICHABL CUNHA| 1.T.A. NO.100058/2016 BRTWERE 1.THE PR. COMMISSIONER OF INCOME TAX,|SHDAM ROAD, KALABURAGI.SHDAM ROAD, KALABURAGI. 2.THE DEPUTY COMMISSIONER OF INCOME TAX,CIRCLE-I, BELLARY.CIRCLE-I, BELLARY. ... APPELLANTS (BY SRI.Y.V.RAVIRAJ, ADV.) ANI M/S. PRAGATHI GRAMINA BANK, HEAD OFFICE, SANGANAKAL ROAD,GANDHINAGAR, BALLARI 5831305. — RESPONDENT (BY SRI.S.PARTHSARTHI & ORILH.R.KAMBIYAVAR, ADVS.) THIS JTA [IS FILED UNDER SECTION 200A OF THEINCOME TAX ACT, 1961 PRAYING TO FORMULATE THE!SUBSTANTIAL QUESTION OF LAW STATED ABOVE AND ALLOW|THERE APPEAL AND SEI ASIDE THER ORDERS PASSED BY TINCOME TAX APPELLATE TRIBUNAL, BANGALORE BENCH - B,BANGALORE, IN ITA NO.1418/BANG/2013, DATED 09.12.2015.AND CONFIRM THR ORDBR PASSBKHD BY THR DEBPUCOMMISSIONER OF INCOME TAX OFFICER, CIRCLE 1, BALLARI. | THISITA|COMINGON|FORORDERS|THIS|DAY, ».SUJATHA J., DELIVERED THE FOLLOWING: 7 OD 3 JUDGMENT This appeal is filed by the assessees challengingthe order of the Income Tax Appellate Tribunal,Bengaluru Bench, ‘B’ in I.T.A. No.1418/Bang/2013_relating to the assessment year 2010-11 raising thefollowing substantial questions of law. “(t)Whether on the facts and in|circumstances of the case, the Tribunal 1s|right in law in dismissing the department's|appeal by confirming the order of_ theCommissioner of Income Tax (Appeals) who|held that the investments made by the bank|in security as stock in trade?| (11)Whether on the facts and in the|circumstances of the case, the Tribunal is|right in law in confirming the order of|Commissioner of Income Tax (Appeal) with|regard to reliance on Circular No.599 even|though the Circular No.599 relied upon by the|Commissioner of Income Tax (Appeals) has.been withdrawn by the Central Board of|Direct Taxes vide Circular No.655?7 (111)Whether on the facts and in the|circumstances of the case, the Tribunal 1s|right in law in confirming the order of|Commissioner of Income Tax (Appeal) intreating the securities held by the assessee|under the category of “held to maturity” as|held in the nature of stock in trade withoutappreciating the fact that these securities|Shall be held till maturity and are notavailable for sale readily as in the case of|securities held under as “Stock in trade”?| 2 |Learned counsel appearing for the partiesagreed that the issues involved herein, are covered bythe decision of this Court in I.T.A. No.100030/2014.dated 14.12.2015, whereby this Court has placedreliance on I.T.A. No.100014/2014 and connectedmatters and substantial questions of law are answeredagainst the revenue and in favour of the assessee. In view of the aforesaid, this appeal standsdismissed answering the substantial questions of lawagainst the revenue and in favour of the assessee. 5/43��� �0.�� -�,�-� �44�=9.3>�23;6/;<�1224/:19/=;0�1>3�:=;0/<;36�9=� �6 #������� �6 #������