Ita/262/2022 Of The Pr. Commissioner Of Income Tax v. M/S Doddanna Traders

Digitally signedby BHARATHISLocation: HIGHCOURT OFKARNATAKA NC: 2024:KHC:35614-DBITA No. 262 of 2022 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 2 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.262 OF 2022 BETWEEN: 1. THE PR. COMMISSIONER OF INCOME TAX CENTRAL CIRCLE, BENGALURU-560 001. BENGALURU-560 001. C.R.BUILDING, QUEENS ROAD, 2. THE DEPUTY COMMISSIONER OF INCOME TAX OF INCOME TAX CENTRAL CIRCLE, NO.55/1, SHILPASHREE, VIDHYARANYA COMPLEX, VISHVESHWARANAGAR, VIDHYARANYA COMPLEX, VISHVESHWARANAGAR, MYSURU-570 008. …APPELLANTS (BY SRI. DILIP M, ADVOCATE) AND: M/S. DODDANNA TRADERS NO.16, B BLOCK, APMC YARD, SHIMOGGA-577 204 PAN AAJFD 1646A …RESPONDENT (BY SRI. G S NAGHARISH, ADVOCATE) THE INCOME TAX APPEAL IS FILED UNDER SEC.260-A OF INCOME TAX ACT 1961, ARISING OUT OF ORDER DATED 01/12/2021 PASSED IN ITA NO. 139/BANG/2021, FOR THE ASSESSMENT YEAR 2015-2016 PRAYING TO I. FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED THEREIN II. ALLOW THE APPEAL AND SET ASIDE THE ORDERS PASSED BY THE INCOME TAX APPELLATE TRIBUNAL, BENGALURU IN ITA NO. 139/BANG/2021 DATED 01/12/2021 FOR ASSESSMENT YEAR 2015-2016 ANNEXURE-C AND CONFIRM THE ORDER OF THE APPELLATE COMMISSIONER CONFIRMING THE ORDER PASSED BY THE DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE, MYSURU III. TO PASS SUCH OTHER SUITABLE ORDERS AS THIS HON'BLE COURT DEEMS FIT TO GRANT IN THE FACTS AND CIRCUMSTANCES OF THE CASE IN THE INTEREST OF JUSTICE AND EQUITY AND ETC. THIS APPEAL, COMING ON FOR ORDERS, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE S.G.PANDIT and and HON'BLE MR JUSTICE C.M. POONACHA ORAL JUDGMENT (PER: HON'BLE MR JUSTICE S.G.PANDIT) This appeal is filed under Section 260-A of the Income Tax Act, 1961 (for short 'the Act') questioning the correctness or otherwise of order passed by the Income Tax Appellate Tribunal, Bengaluru in ITA No.139/Bang/2021 dated 01.12.2021 for the Assessment Year 2015-16 (Annexure-C). 2. The appeal was admitted on 06.09.2022. The questions of law raised by the appellants at Sl.Nos.1, 2 and 3 are extracted as follows: 1. "Whether on the facts and in the circumstances of the case, the Tribunal order can be said as perverse in nature in holding that the conditions prescribed for passing order under section 263 of the Act are not satisfied when the CIT has given elaborate findings to demonstrate that the order passed by assessing authority was prejudicial as well as erroneous order"? 2. "Whether on the facts and in the circumstances of the case, the Tribunal is right in law in allowing appeal preferred by assessee by setting aside order passed under section 263 of the Act ignoring that assessing authority had not derived gross profits from unaccounted sales and purchases recorded in seized documents and assessing authority further failed to make proper enquiry before making additions"? 3. "Whether on the facts and in the circumstances of the case, the Tribunal's order setting aside order passed under section 263 of the Act holding that the assessing authority was correct in determining the unaccented income on the basis of GP rate in disclosed transactions as per regular books of accounts ignoring findings of Commissioner of Income Tax"?. 3. This appeal was filed on 23.05.2022 and Monetary value involved is Rs.29,70,542/-. Subsequent to filing of the appeal, Circular bearing No.5/2024 [F.No.279/Misc.142/2007-ITJ(PT.)] dated 15.3.2024 is issued under Section 265(A) of the Income Tax Act, 1961 prescribing monetary limit and the exceptions to prefer an appeal before the High Court. 4. In view of the above Circular, the above appeal would not be maintainable since monetary value involved in this appeal is less than rupees one crore. Therefore, the above appeal would not survive for consideration and the same is dismissed. 3. This appeal was filed on 23.05.2022 and Monetary value involved is Rs.29,70,542/-. Subsequent to filing of the appeal, Circular bearing No.5/2024 [F.No.279/Misc.142/2007-ITJ(PT.)] dated 15.3.2024 is issued under Section 265(A) of the Income Tax Act, 1961 prescribing monetary limit and the exceptions to prefer an appeal before the High Court. 4. In view of the above Circular, the above appeal would not be maintainable since monetary value involved in this appeal is less than rupees one crore. Therefore, the above appeal would not survive for consideration and the same is dismissed. 5. In view of the above, the substantial questions of law raised in the appeal are kept open to be considered in an appropriate case. Sd/- (S.G.PANDIT) JUDGE Sd/- (C.M. POONACHA) JUDGE SMJ