Ita/410/2007 Of The Commissioner Of Income Tax v. M/S Abcon Engineering & Systems Pvt Ltd

IN THE HIGH COURT OF KARNATAKA AT BANGALORE. DATED THIS THE 227[nd]DAY OF JANUARY 27014| PRESENT THE HON‘'BLE MR. JUSTICE DILIP B BHOSALE AND| THE HON‘'BLE MR. JUSTICE B MANOHAR ITA.NO.410/2007C/W ITA.NO.408/2007 & ITA.NO.409/2007 | BETWEEN 1.THE COMMISSIONER OF INCOME TAX. CENTRAL CIRCLE, C.R.BUILDING QUEENS ROADBANGALORE 2.THE ASSISTANT COMMISSIONER OF INCOME TAXCOMPANY CIRCLE - 4(1), C.R. BUILDINGQUEENS ROADBANGALORE .., APPELLANTS (BY SRI K V ARAVIND, ADV.,). AND M/S ABCON ENGINEERING & SYSTEMS PVT LTD905, BRIGADE TOWERS, 135 BRIGADE ROADBANGALORE ~ .. RESPONDENT (BY MS TANMAYEE RAJKUMAR, ADV., FOR M/S KING &|PARTRIDGE) THIS ITA.NO.410/2007 FILED U/S 260-A OF I.T.ACT,|1961, ARISING OUT OF ORDER DATED 28-11-2006 PASSED IN|I.T.A.NO.603/BANG/1997, FOR THE ASSESSMENT YEAR 1994- 95, PRAYING THIS HON’BLE COURT TO: 1.|FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW|STATED THEREIN,TT.ALLOW THE APPEAL AND SET ASIDE THE ORDERS|PASSED BY THE ITAT, BANGALORE IN ITA NO. 603/BANG/1997|DATED28/11/2006CONFIRMINGTHEORDER|OF.THE|APPELLATE COMMISSIONER AND CONFIRM THE ORDER PASSED|BY THE ASSISTANT COMMISSIONER OF INCOME TAX, COMPANY|CIRCLE-4(1), BANGALORE. THIS ITA.NO.408/2007 & ITA.NO.409/200/7 FILED U/S260-A OF I.T.ACT, 1961, ARISING OUT OF ORDER DATED 28-11-2006PASSEDIN|I.T.A.NO.991/BNG/1998,FOR!THE|ASSESSMENT YEAR 1995-96, PRAYING THIS HON’BLE COURT|TO:. 1. FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW|STATED THEREIN, TT.ALLOW THE APPEAL AND SET ASIDE THE ORDER PASSEDBY THE ITAT, BANGALORE IN ITA NO. 991/BNG/1998 DATED|28/11/2006 CONFIRM THE ORDERS OF THE APPELLATE)COMMISSIONER AND CONFIRM THE ORDER PASSED BY THE|ASSISTANTCOMMISSIONER|OF.INCOME|TAX,COMPANY|CIRCLE-4(1), BANGALORE IN THE INTEREST OF JUSTICE AND|EQUITY. THESE ITA’S COMING ON’ FOR FINAL HEARING, THIS |DAY,Dilip B. Bnosale J.DELIVERED THE FOLLOWING: PC: Learned counsel for the respondent, at the outset,|invited our attention to Instruction No.2/2005 dated24.10.2005 issued by the Central Board of Direct Tax, to.submit that since the tax effect, in these cases, do not.exceed Rs.4,00,000/-, the appeals are not maintainable.In support, sne also invited our attention to Section 268A.of the Income Tax Act, 1961 (for short ‘I.T.Act’). 2.Having confronted with this, Mr.K.V.Aravind,|learned counsel appearing for the revenue invited our|attention to the order dated 29.08.2011 passed py the.Supreme Court, in some other matter, which reads thus: “Liberty is given to the Department to.move the Hign Court pointing out tnat theCircular dated 9[9:]February, 2011, should notbe applied ipso facto, particularly, when thematter has a cascading effect. There arecases under tne Income-Tax Act, 1961, inwhich a common principle may be involved inSubsequent group of matters or large numberof matters. In our view, in sucn cases ifattention of the High Court is drawn, the HighCourt will not apply the Circular ipso facto.For that purpose, liberty is granted to theDepartment to move the High Court in two WeeKS.Tne.specialjieavepetition IS,accordingly, disposed of” ‘3.In view of the order of the Supreme Court, on 20.01.2014, we passed the following order: ~Mr.Aravind, learned counsel appearingfor the revenue seeks time till 27-01-2014 to'file an affidavit of the concerned officer statingtnat thougn in these three appeals of the same.assessee, for three assessment years, arehaving tax effect less than Rs.4,00,000/-, stillit will Mave cascading effect and/or that tnesubstantial questions of law raised are naving.effect on subsequent group of matters or largenumber of matters of the same or similarlyplaced assesses. Mr.Kumar,jearned|Seniorcounselsubmits that so far as the present assessee isconcerned, the issue/question of law that israised in these appeals has not recurred after1997-98 till this date. S.O. to 27-01-2014.” ‘3.In view of the order of the Supreme Court, on 20.01.2014, we passed the following order: ~Mr.Aravind, learned counsel appearingfor the revenue seeks time till 27-01-2014 to'file an affidavit of the concerned officer statingtnat thougn in these three appeals of the same.assessee, for three assessment years, arehaving tax effect less than Rs.4,00,000/-, stillit will Mave cascading effect and/or that tnesubstantial questions of law raised are naving.effect on subsequent group of matters or largenumber of matters of the same or similarlyplaced assesses. Mr.Kumar,jearned|Seniorcounselsubmits that so far as the present assessee isconcerned, the issue/question of law that israised in these appeals has not recurred after1997-98 till this date. S.O. to 27-01-2014.” 4Today, learned counsel appearing for tnerevenue fairly states that it is not possible for theDepartment to file affidavit as per the order dated20.01.2014. In otner words, he submits that they do not.nave any material on record to show that the matter has)cascading effect or if the question raised herein is not decided or decided in favour of the Revenue, that will have|effect on any subsequent group of matters or large.number of matters. 5.From perusal of the orders passed in thesethree appeals, in respect of the very same assessee,pertaining to three assessment years, it is clear that the)tax effect therein is less than Rs.4,00,000/-. It further|appears to us, that the question raised in these appeals|has not recurred after 1997-98 till this date in respect ofthe assessee. In the circumstances, we|dismiss all theseappeals as not maintainablein the light of the InstructionNo.2/2005 dated 24.10.2005 issued under Section 268A of|the I.T. Act. Sd/-| JUDGE. Sd/- JUDGE.