Ita/258/2021 Of The Pr. Commissioner Of Income Tax v. Shri M N Rajendra Kumar

Digitally signedby BHARATHI SLocation: HIGHCOURT OFKARNATAKA NC: 2024:KHC:39395-DB IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 23 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. 258 OF 2021 BETWEEN: 1. THE PR. COMMISSIONER OF INCOME TAX CENTRAL CIRCLE CENTRAL CIRCLE C.R. BUILDING QUEENS ROAD BENGALURU - 560 001 2. THE DEPUTY COMMISSIONER OF INCOME TAX CENTRAL CIRCLE -1 C R BUILDING ATTAVARA MANGALORE - 575 001 …APPELLANTS (BY SRI. RAVI RAJ Y V.,ADVOCATE A/W SRI. DILIP M, ADVOCATE) AND: SHRI M N RAJENDRA KUMAR 1-276, PO 721 PULKERI UDUPI DISTRICT KARKALA PAN …RESPONDENT (BY SRI.K.R. VASUDEVAN.,ADVOCATE) THIS ITA/ INCOME TAX APPEAL IS FILED UNDER SEC.260-A OF INCOME TAX ACT 1961, PRAYING FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED ABOVE, ALLOW THE APPEAL AND SET ASIDE THE ORDERS PASSED BY THE TO - 2 - INCOME TAX APPELLATE TRIBUNAL, BENGALURU IN ITA NO.2259/BANG/2019 DATED 24/08/2020 FOR ASSESSMENT YEAR 2012-2013 ANNEXURE-C AND CONFIRM THE ORDER OF THE APPELLATE COMMISSIONER CONFIRMING THE ORDER PASSED BY THE DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-1, MANGALURU 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 Raviraj Y.V, along with learned counsel Sri Dilip M, for appellants/Revenue and learned counsel Sri K.R.Vasudevan, 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 24.8.2020 passed by the Income Tax Appellate Tribunal, ‘C’ Bench, Bengaluru (for short, ‘Appellate Authority’) in ITA.No.2259/Bang/2019 for the assessment year 2012-13, raising the following substantial questions of law: “1. " Whether, on the facts and in the circumstances of the case and law, the Tribunal is right in deleting the additions made by assessing authority in respect of cash investment in K.D. Developers (liberty Garden Project) ignoring the evidences brought on record/seized materials during course of search and survey action in the assessee group which is supported the additions and as such order passed by Tribunal is perverse in nature? 2. Whether, on the facts and in the circumstances of the case, in not considering the voluntary admission's made in statements recorded under Section 132(4) of the Act on two different dates as well as once recorded under Section 131 of the Act which were retraced later after 18 months without giving due credence to the digital evidences and material found during course of search"? 3. Whether on the facts and in the circumstances of the case, the Tribunal is right in law in not directing assessing authority to make addition in the hands of the firm as per provisions of Explanation 2 to Section 153 read with Section 150 of the Act as less than six years had passed from the end of the A.Y.2012-13 as on the date of passing of assessment order in the case of Mr.M.N.Rajendra Kumar, which had been passed on 30/12/2018 and the assessment for A.Y.2012-13 could have been re-opened as on this date"?” 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. 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 questions of law are kept open to be adjudicated in an appropriate proceeding. Sd/- (S.G.PANDIT) JUDGE Sd/- (C.M. POONACHA) JUDGE