Ita/391/2023 Of The Commissioner Of Income Tax Tds v. Biocon Ltd

Digitallysigned by BLAVANYALocation:HIGHCOURT OFKARNATAKA IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 1 DAY OF OCTOBER, 2024 PRESENT THE HON'BLE MR JUSTICE S.G.PANDIT AND THE HON'BLE MR JUSTICE C.M. POONACHA INCOME TAX APPEAL NO. 391 OF 2023 BETWEEN: 1. THE COMMISSIONER OF INCOME-TAX TDS, 4 FLOOR, HMT BHAVAN, BELLARY ROAD, GANGANAGAR, BENGALURU-560 032. OF INCOME-TAX TDS, 4 FLOOR, HMT BHAVAN, BELLARY ROAD, GANGANAGAR, BENGALURU-560 032. 2. THE DEPUTY COMMISSIONER OF INCOME-TAX LTU, PRESENT ADDRESS, DCIT, TDS, CRICLE-1(1), 4 FLOOR, HMT BHAVAN, ROOM NO.407, BELLARY ROAD, GANGANAGAR, BENGALURU-560 032 DCIT, TDS, CRICLE-1(1), 4 FLOOR, HMT BHAVAN, ROOM NO.407, BELLARY ROAD, GANGANAGAR, BENGALURU-560 032 …APPELLANTS (BY SRI. DILIP M., ADVOCATE ALONG WITH SRI. RAVIRAJ Y.V., ADVOCATE) SRI. RAVIRAJ Y.V., ADVOCATE) - 2 - AND: BIOCON LTD 20 KM, HOSUR ROAD, ELECTRONIC CITY, HEBBAGODI, BENGALURU-560 100 PAN NO. …RESPONDENT (BY SMT. TANMAYEE RAJKUMAR, ADVOCATE) THIS INCOME TAX 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.1248/BANG/2014 DATED 21.03.2023 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, TDS, CIRCLE-1(1), 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 JUDGMENT (PER: HON'BLE MR JUSTICE S.G.PANDIT) Heard the learned counsel Sri.Dilip.M, along with Sri. Raviraj.Y.V., for appellants/Revenue and learned counsel Smt.Tanmayee Rajkumar for 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 21.03.2022 passed by the Income Tax Appellate Tribunal, "A" Bench, Bengaluru (for short, ‘Appellate Authority’) in ITA.No.1248/Bang/2014 for the assessment year 2012-13. 3. This Court, admitted the appeal on 12.06.2023 to consider the following substantial questions of law: 1. " Whether the Tribunal was right in law in holding that if the assesse is able to prove that payees are 'not identifiable' then assessing authority is not entitled to demand tax under section 201 (1) and interest under section 201(1A) of the ignoring that no such exception is provided under section 201 nor under section 194/195 of the Act? - 4 - 2. "Whether on the facts and in the circumstance of the case, the Tribunal's order can be said as Perverse in nature in holding that in case where actual payment made in subsequent year is less than the year-end provision made, that liability to deduct TDS shall arise only on the amount of actual payment in subsequent year which goes against the principle of TDS which is also required to be made on provisions made"? 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. - 5 - 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 SMJ List No.: 2 Sl No.: 12