Ita/125/2021 Of The Pr. Commissioner Of Income Tax v. M/S Apotex Pharmachem India Pvt Ltd

Digitallysigned byBHARATHI SLocation:HIGH COURTOFKARNATAKA NC: 2024:KHC:41150-DB ITA No. 125 of 2021 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 30 DAY OF SEPTEMBER, 2024 PRESENT THE HON'BLE MR JUSTICE S.G.PANDIT AND THE HON'BLE MR JUSTICE C.M. POONACHA INCOME TAX APPEAL NO. 125 OF 2021 BETWEEN: 1. THE PR. COMMISSIONER OF INCOME TAX 5TH FLOOR, BMTC BUILDING 80 FEET ROAD, KORAMANGALA BENGALRUU 560 095 2. THE DEPUTY COMMISSIONER OF INCOME-TAX CIRCLE -11(1),PRESENT ADDRESS DCIT, CIRCLE 1(1)(1) 2ND FLOOR, BMTC BUILDING 80 FEET ROAD, KORAMANGALA BENGALURU 560 095 …APPELLANTS (BY SRI. M DILIP .,ADVOCATE A/W SRI. RAVIRAJ Y V, ADVOCATE) AND: M/S APOTEX PHARMACHEM INDIA PVT LTD. PLOT NO.1A, 4TH PHASE BOMMASANDRA INDUSTRIAL AREA BENGALURU 560 099 PAN AACCB 1658E …RESPONDENT (BY SRI. TATA KRISHNA.,ADVOCATE) THIS ITA / INCOME TAX APPEAL IS FILED UNDER SEC.260-A OF INCOME TAX ACT 1961, PRAYING TO FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATE ABOVE, ALLOW THE APPEAL AND SET ASIDE THE ORDERS PASSED BY THE INCOME-TAX APPELLATE TRIBUNAL, BENGALURU IN IT(TP)A NO. 2200/BANG/2016 DATED 17/01/2020 FOR ASSESSMENT YEAR 2011-2012 ANNEXURE D AND CONFIRM THE ORDER OF THE APPELLATE COMMISSIONER CONFIRMING THE ORDER PASSED BY THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE -1(1)(1), BENGALURU AND ETC. THIS APPEAL, COMING ON FOR FINAL HEARING, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE S.G.PANDIT and HON'BLE MR JUSTICE C.M. POONACHA ORAL JUDGMENT (PER: HON'BLE MR JUSTICE S.G.PANDIT) Heard the learned counsel Sri.Dilip M. along with Sri Raviraj Y.V., for appellants/Revenue and learned counsel Sri Tata Krishna, learned counsel for the respondent/assessee. 2. The Revenue is in appeal under Section 260-A of the Income Tax Act, 1961 (for short, ‘the Act’) questioning the correctness and legality of order dated 17.01.2020 passed by the Income Tax Appellate Tribunal, ‘A’ Bench, Bengaluru (for short, ‘Appellate Authority’) in IT(TP) A No.249/Bang/2014 for the assessment year 2009-10, raising the following substantial questions of law: “1. Whether on the facts and in the circumstances of the case, the Tribunal is right in law in directing the assessing authority to call for details regarding bifurcation of the claim attributable to manufacturing segment in Miscellaneous Proceeding when same was not subject matter of the original proceeding? 2. Whether on the facts and in the circumstances of the case, the order passed by Tribunal is perverse in nature as Tribunal has entertained miscellaneous petition when conditions set out in Section 254(2) of the Act are not satisfied and when there was no mistake apparent from record? 3. Learned counsel for the assessee submits that the tax effect in this appeal is less than Rs.2 Crores and therefore, the appeal should not be entertained at the instance of the revenue in view of the Circular No.09/2024 dated 17.09.2024 issued by the Central Board of Direct Taxes. It is also submitted that the aforesaid Circular binds the revenue. 4. On the other hand, learned counsel for the revenue submits that he be granted liberty to revive the appeal in case the matter falls within the exceptions under the aforesaid Circular dated 17.09.2024 and Circular No.5/2024 dated 15.03.2024. 5. In view of the aforesaid submissions, the appeal is disposed of with liberty as prayed for by the learned counsel for the revenue. However, the question of law is kept open to be adjudicated in an appropriate proceeding. Sd/- (S.G.PANDIT) JUDGE Sd/- (C.M. POONACHA) JUDGE BS List No.: 1 Sl No.: 44