Ita/353/2023 Of The Prl. Commissioner Of Income Tax Central v. M/S Condor Developers Pvt Ltd

Digitallysigned byBHARATHI SLocation:HIGH COURTOFKARNATAKA 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. 353 OF 2023 BETWEEN: 1. THE PRL. COMMISSIONER OF INCOME-TAX CENTRAL, 3 FLOOR, C R BUILDING, QUEENS ROAD, BANGALORE-560 001. 2. THE DEPUTY COMMISSIONER OF INCOME-TAX CENTRAL CIRCLE-1(1), 3 FLOOR, C.R.BUILDING, QUEENS ROAD, BENGALURU-560 001. 3 FLOOR, C.R.BUILDING, QUEENS ROAD, BENGALURU-560 001. …APPELLANTS (BY SRI. DILIP.M., ADVOCATE FOR SRI. RAVIRAJ.Y.V., ADVOCATE) AND: M/S. CONDOR DEVELOPERS PVT.LTD., NO.40, OLD KANAKPURA MAIN ROAD, BASVANGUDI, BENGALURU – 560 004. PAN. AABCH 6554Q. …RESPONDENT (BY SRI.BALRAM R.RAO, ADVOCATE) - 2 - NC: 2024:KHC:40546-DBITA No. 353 of 2023 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 ITA NO.1020/BANG/2022 DATED 03.02.2023 FOR ASSESSMENT YEAR 2018-2019 (ANNEXURE-C) 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 and Sri. Balram.R.Rao, 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 03.02.2023 passed by the Income Tax Appellate Tribunal, - 3 - NC: 2024:KHC:40546-DBITA No. 353 of 2023 ‘A’ Bench, Bengaluru (for short, ‘Appellate Authority’) in ITA.No.1020/Bang/2022 for the assessment year 2018-19. 3. This Court, admitted the appeal on 05.12.2023 to consider the following substantial questions of law: 1. "Whether on the facts and circumstances of the case, the Tribunal is right in law in setting aside the matter back to file of CIT(A) with a direction to enquire with the partners, M/s.Sobha Developers Ltd and M/s.Elyon Developers (P)) Ltd when such enquiries are irrelevant as the assesse had itself admitted that it had forfeited the amount in his statement and ignoring the findings of the assessing authority"? 2. "Whether on the facts and circumstances of the case, the Tribunal is right in law in remanding the matter to assessing authority in relation to issue pertaining to forfeiture of advance as per provisions of Section 56(2)(ix) of the Act ignoring that assessing authority had made addition on basis of materials on record and facts of the case"? 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 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