Ita/446/2023 Of Pr.commissioner Of Income Tax v. M/S Shri. K. A. Rame Gowda

Digitallysigned byBHARATHI SLocation:HIGHCOURT OFKARNATAKA NC: 2024:KHC:39904-DBITA No. 446 of 2023 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 25 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.446 OF 2023 BETWEEN: 1. PR. COMMISSIONER OF INCOME TAX, KORMANGALA, BANGALORE. 2. THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE 2 (3) 1, EXEMPTION, BANGALORE. …APPELLANTS (BY SRI. SANMATHI E.I., ADVOCATE) AND: M/S. SHRI. K.A.RAME GOWDA C/O VAGUS SUPER SPECIALTY, HOSPITALS, NO.6 AND 7, 8 , 4 MAIN, 18 CROSS, MALLESHWARAM, BANGALORE-560 003 PAN: …RESPONDENT THIS INCOME TAX APPEAL IS FILED UNDER SEC.260-A OF INCOME TAX ACT 1961, ARISING OUT OF ORDER DATED 12/11/2021 PASSED IN ITA NO.456/BANG/2019, FOR THE ASSESSMENT YEAR 2012-2013 PRAYING TO DECIDE THE FOREGOING QUESTION OF LAW AND / OR SUCH OTHER QUESTIONS OF LAW AS MAY BE FORMULATED BY THE HONBLE COURT AS DEEMED FIT AND SET ASIDE THE APPELLATE ORDER DATED 12.11.2021 PASSED BY THE INCOME TAX APPELLATE TRIBUNAL, 'C' BENCH, BENGALURU, AS SOUGHT FOR, IN THE RESPONENT-ASSESSEE'S CASE, IN APPEAL PROCEEDINGS IN ITA NO.456/BANG/2019 FOR ASSESSMENT YEAR 2012-2013 (ANNEXURE-A) AND GRANT SUCH OTHER RELIEF AS DEEMED FIT, IN THE INTEREST OF JUSTICE. THIS APPEAL, COMING ON FOR 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 - 3 - ORAL JUDGMENT (PER: HON'BLE MR JUSTICE S.G.PANDIT) Heard the learned counsel Sri. E.I.Sanmathi 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 12.11.2021 passed by the Income Tax Appellate Tribunal, ‘C’ Bench, Bengaluru (for short ‘Appellate Authority’) in ITA.No.456/Bang/2019 for the assessment year 2012-13, raising the following substantial questions of law: 1. "Whether on the facts and in the circumstances of the case, the Tribunal's order is perverse in in deleting the addition of rs.4,65,11,898 by holding that Section 4191) invoked by the assessing officer at the end of the order is not applicable in the present case ignoring that assessing authority made disallowance by holding that loans to the extent of said amount have not been explained with substantial proof and therefore the same is taxable"? 2. "Whether on the facts and in the circumstances of the case, the Tribunal is perverse in nature in not calling evidences for verification of credits or ought to have set aside the matter to file of assessing authority for verification of facts as mistake committed by assessing authority was curable under section 292B of the Act"? 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 - 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 SMJ List No.: 2 Sl No.: 1