Ita/442/2023 Of The Commissioner Of Income Tax v. M/S Ibiden Singapor

Digitallysigned by BLAVANYALocation:HIGHCOURT OFKARNATAKA IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 27 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. 442 OF 2023 BETWEEN: 1. THE COMMISSIONER OF INCOME-TAX, INTERNATIONAL TAXATION, 4 FLOOR, BMTC BUILDING, 80 FEET ROAD, KORMANGALA, BENGALURU 560 095. OF INCOME-TAX, INTERNATIONAL TAXATION, 4 FLOOR, BMTC BUILDING, 80 FEET ROAD, KORMANGALA, BENGALURU 560 095. 2. THE ASSISTANT COMMISSIONER OF INCOME-TAX, INTERNATIONAL TAXATION, CIRCLE 1(2), 4 FLOOR, BMTC BUILDING, 80 FEET ROAD, KORMANGALA, BENGALURU 560 095. OF INCOME-TAX, INTERNATIONAL TAXATION, CIRCLE 1(2), 4 FLOOR, BMTC BUILDING, 80 FEET ROAD, KORMANGALA, BENGALURU 560 095. …APPELLANTS (BY SRI. DILIP M., A/W SRI. RAVIRAJ Y.V., ADVOCATES) ITA No. 442 of 2023 AND: M/S. IBIDEN SINGAPORE PVT. LTD., INDIA BRANCH OFFICE, NO. 8, GROUND FLOOR, NITESH TIMES SQUARE, M.G. ROAD, BENGALURU 560 001 PAN AABCI 8919E …RESPONDENT (BY SMT. TANMAYEE RAJKUMAR, ADVOCATE) THIS ITA / INCOME TAX APPEAL IS FILED UNDER SEC.260-A OF THE INCOME TAX ACT, 1961, PRAYING TO I. FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED ABOVE AND ETC. THIS APPEAL, COMING ON FOR FURTHER ORDERS, 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 and Smt. Tanmayee Rajkumar, 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 06.12.2022 passed by the Income Tax Appellate Tribunal, ‘C’ Bench, Bengaluru (for short ‘Appellate Authority’) in IT(IT)A.No.784/Bang/2022 for the assessment year 2018-19, raising the following substantial questions of law: 1."Whether on the facts and in the circumstances of the case, the Tribunal's order can be said as perverse in nature in quashing re-assessment orders passed by assessing officer for A.Υ. 2016-17, 2017-the case, the Tribunal's order can be said as perverse in nature in quashing re-assessment orders passed by assessing officer for A.Υ. 2016-17, 2017- 18 and 2018-19 on the ground that said orders are passed without issuing notice under section 143(2) of the Act ignoring that even if same is not issued, the proceeding cannot be held as invalid as issuance of notice under section 143(2) is not mandatory"? of the Act ignoring that even if same is not issued, the proceeding cannot be held as invalid as issuance of notice under section 143(2) is not mandatory"? 2."Whether on the facts and in the circumstances of the case, the Tribunal's order can be said as perverse in nature in quashing re-assessment orders passed by assessing officer for Α.Υ. 2016-17, 2017-18 and 2018-19 on the ground that said orders are passed without issuing notice under section 143(2) of the Act ignoring that even if same is not issued, re-assessment orders cannot be held as invalid as assesse has contested the on merits and not objected to same at earlier stage"? the case, the Tribunal's order can be said as perverse in nature in quashing re-assessment orders passed by assessing officer for Α.Υ. 2016-17, 2017-18 and 2018-19 on the ground that said orders are passed without issuing notice under section 143(2) of the Act ignoring that even if same is not issued, re-assessment orders cannot be held as invalid as assesse has contested the on merits and not objected to same at earlier stage"? 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 - 5 - 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 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