Ita/238/2023 Of The Pr Commissioner Of Income Tax v. M/S Concorde Housing Corporation 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. 238 OF 2023 BETWEEN: 1. THE PR. COMMISSIONER OF INCOME-TAX CENTRAL, 3 FLOOR, C.R. BUILDING, QUEEN'S ROAD, BENGALURU – 560 001. 2. THE ASST. COMMISSIONER OF INCOME-TAX, CENTRAL CIRCLE-1(4), DCIT, CENTRAL CIRCLE-1(1), 3 FLOOR, C.R. BUILDING, QUEEN'S ROAD, BENGALURU-560 001. …APPELLANTS (BY SRI. DILIP M., A/W SRI. RAVIRAJ.Y.V., ADVOCATES) AND: M/S CONCORDE HOUSING CORPORATION PVT. LTD., NO.46/A, CONCORDE GROUP 1 MAIN, III PHASE, J.P.NAGAR, BENGALURU – 560 078. PAN. . - 2 - NC: 2024:KHC:40543-DBITA No. 238 of 2023 …RESPONDENT (BY SRI. RAVI SHANKAR S.V., ADVOCATE) THIS APPEAL IS FILED UNDER SECTION 260-A OF THE INCOME TAX ACT, 1961, PRAYING TO ALLOW THE APPEAL AND SET ASIDE THE ORDERS PASSED BY THE INCOME TAX APPELLATE TRIBUNAL, BENGALURU IN ITA NO.699/BANG/2022 DATED 06.12.2022 FOR ASSESSMENT YEAR 2016-17 (ANNEXURE-D) AND CONFIRM THE ORDER OF THE APPELLATE COMMISSIONER CONFIRMING THE ORDER PASSED BY THE DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-1(4), BENGALURU, 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 the appellants/Revenue and Sri. Ravishankar.S.V., 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 06.12.2022 passed by the Income Tax Appellate Tribunal, ‘A’ Bench, Bengaluru (for short, ‘Appellate Authority’) in ITA.No.699/Bang/2022 for the assessment year 2016-17. 3. This Court, admitted the appeal on 21.12.2023 to consider the following substantial questions of law: 1. "Whether on the facts and in the circumstances of the case, the Tribunal's order can be said as perverse as Tribunal has allowed the appeal preferred by assesse by holding that issue is debatable when in sharp contract the Tribunal itself upheld the finding of CIT(A) in para 11 of its order. The Tribunal holds that Assessing Officer should have rectified the assessment order but at the same time, the Tribunal holds that issue is debatable and rectification cannot be made by passing order under section 154 of the Act"? 2. "Whether on the facts and in the circumstances of the case, the Tribunal is right in law in allowing in setting aside order passed under section 154 of the of the Act when the conditions set out in section1 54 are fully satisfied in facts of present case and additions made in said order are in accordance with provisions of the Act"? 4. 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. 5. On the other hand, learned counsel for the revenue submits that he be granted liberty to revive the - 5 - 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. 6. 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