Ita/20/2023 Of The Pr. Commissioner Of Income Tax v. M/S Gokula Education

Digitallysigned byBHARATHI SLocation:HIGH COURTOFKARNATAKA IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 5 DAY OF AUGUST, 2024 PRESENT THE HON'BLE MR JUSTICE S.G.PANDIT AND THE HON'BLE MR JUSTICE C.M. POONACHA INCOME TAX APPEAL NO. 20 OF 2023 C/W INCOME TAX APPEAL NO. 21 OF 2023 INCOME TAX APPEAL NO. 22 OF 2023 IN ITA No.20/2023 BETWEEN: 1. THE PR. COMMISSIONER OF INCOME TAX CENTRAL, 3RD FLOOR, C.R.BUILDING, QUEENS ROAD, BENGALURU-560 001. 2. THE DEPUTY COMMISSIONER OF INCOME TAX CENTRAL CIRCLE-1(2) 3RD FLOOR, C.R.BUILDING, QUEENS ROAD, BENGALURU-560 001. APPELLANTS (BY SRI. M DILIP.,ADVOCATE) AND: M/S GOKULA EDUCATION FOUNDATION (MEDICAL) MSR NAGAR,MSRIT POST, MATHICARE, BENGALURU-560 064 PAN AAATG 1779Q …RESPONDENT (BY SRI. A SHANKAR., SENIOR ADVOCATE FOR SRI. CHANDRASEKHAR V., AND NC: 2024:KHC:30975-DBITA No. 20 of 2023C/W ITA No. 21 of 2023ITA No. 22 of 2023 SRI. S ANNAMALAI, ADVOCATES) THIS ITA / INCOME TAX APPEAL IS FILED UNDER SEC.260-A OF INCOME TAX ACT 1961, PRAYING TO FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED THEREIN, ALLOW THE APPEAL AND SET ASIDE THE ORDERS PASSED BY THE INCOME TAX APPELLATE TRIBUNAL, BENGALURU IN ITA NO.499/BANG/2021 DATED 18.07.2022 FOR ASSESSMENT YEAR 2011-2012 ANNEXURE-C CONFIRMING THE ORDER OF THE APPELLATE COMMISSIONER AND CONFIRM THE ORDER PASSED BY THE DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE- 1(2), BENGALURU AND ETC. IN ITA No.21/2023 BETWEEN: 1. THE PR. COMMISSIONER OF INCOME TAX CENTRAL, 3RD FLOOR, C.R.BUILDING, QUEENS ROAD, BENGALURU-560 001. CENTRAL, 3RD FLOOR, C.R.BUILDING, QUEENS ROAD, BENGALURU-560 001. 2. THE DEPUTY COMMISSIONER OF INCOME TAX CENTRAL CIRCLE 1(2) 3RD FLOOR, C.R.BUILDING, QUEENS ROAD, BENGALURU-560 001. CENTRAL CIRCLE 1(2) 3RD FLOOR, C.R.BUILDING, QUEENS ROAD, BENGALURU-560 001. (BY SRI. M DILIP., ADVOCATE) …APPELLANTS AND: M/S GOKULA EDUCATION FOUNDATION (MEDICAL) MSR NAGAR, MSRIT POSTS, MATHICARE, BENGALURU-560 064 PAN AAATG 1779Q (BY SRI. A SHANKAR, SENIOR ADVOCATE FOR SRI. CHANDRASEKHAR V.,AND SRI. CHANDRASEKHAR V.,AND SRI. ANNAMALAI, ADVOCATES) …RESPONDENT THIS ITA / INCOME TAX APPEAL IS FILED UNDER SEC.260-A OF INCOME TAX ACT 1961, PRAYING TO FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED THEREIN, ALLOW THE NC: 2024:KHC:30975-DBITA No. 20 of 2023C/W ITA No. 21 of 2023ITA No. 22 of 2023 APPEAL AND SET ASIDE THE ORDERS PASSED BY THE INCOME TAX APPELLATE TRIBUNAL, BENGALURU IN ITA NO.500/BANG/2021 DATED 18.07.2022 FOR ASSESSMENT YEAR 2012-2013 ANNEXURE-C CONFIRMING THE ORDER OF THE APPELLATE COMMISSIONER AND CONFIRM THE ORDER PASSED BY THE DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE- 1(2), BENGALURU AND ETC. IN ITA No.22/2023 BETWEEN: 1. THE PR. COMMISSIONER OF INCOME TAX CENTRAL 3RD FLOOR, C R BUILDING QUEENS ROAD BENGALURU – 560001 CENTRAL 3RD FLOOR, C R BUILDING QUEENS ROAD BENGALURU – 560001 2. THE DEPUTY COMMISSIONER OF INCOME TAX CENTRAL CIRCLE-1(2) 3RD FLOOR, C R BUILDING QUEENS ROAD, BENGALURU - 560001 CENTRAL CIRCLE-1(2) 3RD FLOOR, C R BUILDING QUEENS ROAD, BENGALURU - 560001 (BY SRI. M DILIP.,ADVOCATE) …APPELLANTS AND: M/S GOKULA EDUCATION FOUNDATION (MEDICAL) MSR NAGAR MSRIT POSTS, MATHICARE BENGALURU - 560064 PAN. AAATG 1779Q (BY SRI. A SHANKAR, SENIOR ADVOCATE FOR SRI. CHANDRASEKHAR V.,AND SRI. ANNAMALAI, ADVOCATES) …RESPONDENT THIS ITA / INCOME TAX APPEAL IS FILED UNDER SEC.260-A OF INCOME TAX ACT 1961, PRAYING TO FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED THEREIN, ALLOW THE APPEAL AND SET ASIDE THE ORDERS PASSED BY THE INCOME TAX APPELLATE TRIBUNAL, BENGALURU IN ITA NO.501/BANG/2021 DATED 18.07.2022 FOR ASSESSMENT YEAR 2013-2014 ANNEXURE-C CONFIRMING THE ORDER OF THE APPELLATE COMMISSIONER AND NC: 2024:KHC:30975-DBITA No. 20 of 2023C/W ITA No. 21 of 2023ITA No. 22 of 2023 (BY SRI. M DILIP.,ADVOCATE) …APPELLANTS AND: M/S GOKULA EDUCATION FOUNDATION (MEDICAL) MSR NAGAR MSRIT POSTS, MATHICARE BENGALURU - 560064 PAN. AAATG 1779Q (BY SRI. A SHANKAR, SENIOR ADVOCATE FOR SRI. CHANDRASEKHAR V.,AND SRI. ANNAMALAI, ADVOCATES) …RESPONDENT THIS ITA / INCOME TAX APPEAL IS FILED UNDER SEC.260-A OF INCOME TAX ACT 1961, PRAYING TO FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED THEREIN, ALLOW THE APPEAL AND SET ASIDE THE ORDERS PASSED BY THE INCOME TAX APPELLATE TRIBUNAL, BENGALURU IN ITA NO.501/BANG/2021 DATED 18.07.2022 FOR ASSESSMENT YEAR 2013-2014 ANNEXURE-C CONFIRMING THE ORDER OF THE APPELLATE COMMISSIONER AND NC: 2024:KHC:30975-DBITA No. 20 of 2023C/W ITA No. 21 of 2023ITA No. 22 of 2023 CONFIRM THE ORDER PASSED BY THE DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE- 1(2), BENGALURU AND ETC. THESE APPEALS, COMING ON FOR 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) These appeals by the Revenue, under Section 260-A of the Income Tax Act, 1961, are against the orders dated 18.07.2022 passed by the Income Tax Appellate Tribunal, Bengaluru in ITA No.499/Bang/2021 for the Assessment Year 2011-12 (Annexure-C), in ITA No.500/Bang/2021 for the Assessment Year 2012-13 (Annexure-C) and in ITA No.501/Bang/2021 for the Assessment Year 2013-14 (Annexure-C) respectively, confirming the orders passed by the Deputy Commissioner of Income Tax, Central Circle-1(2), Bengaluru, in respect of the Assessment Years 2011-12, 2012-13 and 2013-14 respectively relating to the respondent – assessee. 2. In the above appeals, this Court admitted the appeals on 17.4.2023, 27.03.2023 and 15.02.2023, respectively to examine the following common substantial questions of law: “1. Whether under the facts and in the circumstances of the case and in law the Tribunal is right in deleting the assessed income under section 153A of the Income Tax Act, 1961, wherein section 153A empowers the AO to "assess" or "reassess the income"? 2. Whether under the facts and in the circumstances of the case and in law, the Tribunal is right in deleting the assessed income u/s 153A as the Hon'ble High Court of Karnataka in the case of Canara Housing Development Co. Ltd. vs. DCIT held that "when once the proceedings are initiated under Section 153A of the Act, the legal effect is even in case where the assessment order is passed it stands reopened"? 3. Whether under the facts and in the circumstances of the case and in law, the Hon'ble Tribunal is right in right in not considering the fact that the AO has to re-determine the total income of the assessee by considering all the additions made previously while completing the order under section 153A of the Act?” 3. Heard Sri M.Dilip, learned counsel for the revenue and Sri A.Shankar, learned Senior Counsel for the assessee. 4. During the course of hearing, it is brought to our notice that the questions involved in the above appeals are covered by the decision of the Hon’ble Supreme Court in the case of Principal Commissioner of Income-tax, Central-3 v. Abhisar Buildwell (P) Ltd., reported in (2023) 149 taxmann.com 399. NC: 2024:KHC:30975-DB ITA No. 20 of 2023C/W ITA No. 21 of 2023ITA No. 22 of 2023 5. Learned Counsel Sri Dilip is not in a position to dispute the same. 6. In terms of the decision of the Hon’ble Supreme Court (supra), the appeals are dismissed. The questions raised are answered in favour of the assessee and against the revenue. Sd/- (S.G.PANDIT) JUDGE Sd/- (C.M. POONACHA) JUDGE