Ita/430/2023 Of The Prl. Commissioner Of Income Tax v. M/S Tata Power Solar Systems 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.430 OF 2023 BETWEEN: 1. THE PR. COMMISSIONER OF INCOME-TAX 5 FLOOR, BMTC BUILDING, 80 FEET ROAD, KORMANGALA, BENGALURU-560 095. OF INCOME-TAX 5 FLOOR, BMTC BUILDING, 80 FEET ROAD, KORMANGALA, BENGALURU-560 095. 2. DEPUTY COMMISSIONER OF INCOME TAX, OF INCOME TAX, CIRCLE 7(1)(1), 2 FLOOR, BMTC BUILDING, 80 FEET ROAD, KORMANGALA, BENGALURU-560 095 …APPELLANTS (BY SRI. DILIP M., ADVOCATE ALONG WITH SRI. RAVIRAJ.Y.V., ADVOCATE) - 2 - AND: M/S. TATA POWER SOLAR SYSTEMS LTD., 78, ELECTRONIC CITY, HOSUR ROAD BENGALURU-560 100. PAN: AAACT 4660J …RESPONDENT (SERVED) THIS INCOME TAX 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 M.P.NO. 78/BANG/2022 (IT(TP)A NO. 699/BANG/2016) DATED 26/09/2022 FOR ASSESSMENT YEAR 2011-2012 (ANNEXURE-E) AND CONFIRM THE ORDER OF THE DRP CONFIRMING THE ORDER PASSED BY THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 7(1)(1), BENGALURU, AND ETC. THIS APPEAL IS COMING ON FOR ADMISSION, 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., learned counsel for appellants/Revenue. 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 26.09.2022 passed by the Income Tax Appellate Tribunal, ‘B’ Bench, Bengaluru (for short, ‘Appellate Authority’) in M.P.No.78/Bang/2022 (in IT(TP)A.No.699/Bang/2016) for the assessment year 2011-12, raising the following substantial questions of law: 1. "Whether on the facts and circumstances of the case, the Tribunal's order can be said as perverse in nature in nature in holding that the interest income should be not be taxed under income from other sources by relying on the decision of co- ordinate bench without examining the nature of transaction"? 2. "Whether on the facts and circumstances of the case, the Tribunal is right in allowing the miscellaneous petition without appreciating that issue requires factual examination by assessing authority and as such Tribunal ought to have remanded the matter to assessing authority for fresh examination and ought not to have gone in detail in 254 of the Act proceeding?" 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 - 5 - counsel for the revenue. However, the question of law is kept open to be adjudicated in an appropriate proceeding. Sd/- (S.G.PANDIT) JUDGE S/d- (C.M. POONACHA) JUDGE SMJ List No.: 2 Sl No.: 6