Ita/225/2024 Of The Pr. Commissioner Of Income Tax Central v. M/S Manipal Education And Medical Group India Pvt Ltd

Digitallysigned by BLAVANYALocation:HIGHCOURT OFKARNATAKA IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 26 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. 225 OF 2024 BETWEEN: 1. THE PR. COMMISSIONER OF INCOME TAX CENTRAL, 3 FLOOR, C.R BUILDING, QUEENS ROAD, BENGALURU-560 001. 2. THE DEPUTY COMMISSIONER OF INCOME TAX CENTRAL CIRCLE-1(2) 3 FLOOR, C.R.BUILDING, QUEEN'S ROAD, BENGALURU-560 001. …APPELLANTS (BY SRI. DILIP.M., ADVOCATE ALONG WITH SRI.Y.V.RAVIRAJ, ADVOCATE) AND: M/S. MANIPAL EDUCATION AND MEDICAL GROUP INDIA PVT LTD., 24/1, 15 FLOOR, - 2 - JW MARRIOT, BENGALURU - 560 001. PAN: AADCM 8103A REP.BY MANAGING DIRECTOR …RESPONDENT THIS APPEAL IS FILED UNDER SECTION 260-A OF INCOME TAX ACT, 1961, PRAYING TO ALLOW THE APPEAL AND SET-ASIDE THE ORDERS PASSED BY THE INCOME-TAX APPELLATE TRIBUNAL, BENGALURU, IN M.P. NO.1/BANG/2024 (IN ITA NO.105/BANG/2023) DATED 08.02.2024 FOR ASSESSMENT YEAR 2015-2016 (ANNEXURE-A) AND ETC. THIS APPEAL IS 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 ORDER (PER: HON'BLE MR JUSTICE S.G.PANDIT) Heard the learned counsel Sri.Dilip.M., along with Sri. Raviraj.Y.V., learned counsel for appellants/Revenue. 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 08.02.2024 passed by the Income Tax Appellate Tribunal, ‘C’ Bench, Bengaluru (for short ‘Appellate Authority’) in M.P.No.1/Bang/2024 (in ITA.No.105/Bang/2023) for the assessment year 2015-16, raising the following substantial questions of law: 1. "Whether on the facts and in the circumstances of the case and in law, the order of the tribunal was perverse in so far as the tribunal had not enquired into the correctness of the facts claimed by the assessee and had ignored the submissions made by the assesse itself during the assessment proceedings that the additional loan form IDFC was used for purchase of the capital asset"? 2. "Whether on the facts and in the circumstances of the case and in law, the tribunal was right in confirming that the assesse has interest free funds based on the facts of the earlier assessment year 2013-14 & 2014-15 and applying the same to the current A.Y. i.e. 2015-16"? 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 - 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 SMJ List No.: 3 Sl No.: 8