Ita/458/2023 Of The Prl. Commissioner Of Income Tax v. Puradakoppalu Battegowda Karigowda

Digitallysigned by BLAVANYALocation:HIGHCOURT OFKARNATAKA NC: 2024:KHC:40519-DBITA No. 458 of 2023 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 26 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. 458 OF 2023 BETWEEN: 1. THE PRL. COMMISSIONER OF INCOME-TAX, CENTRAL, 3 FLOOR, C.R. BUILDING, QUEEN S ROAD, BENGALURU - 560 001. 2. THE DEPUTY COMMISSIONER OF INCOME-TAX, CENTRAL CIRCLE, ROOM NO. 305, AAYAKAR BHAVAN, NO. 21/16, RESIDENCY ROAD, NAZARBAD, MYSURU - 570 010. …APPELLANTS (BY SRI. DILIP M., A/W SRI. RAVIRAJ Y.V., ADVOCATES) AND: PURADAKOPPALU BATTEGOWDA KARIGOWDA, PWD CONTRACTOR, PURADAKOPPALU DUDDA HOBLI, MUDAGANDUR POST, MANDYA, KARNATAKA - 571 416, PAN. AHLPK 6049B. …RESPONDENT (BY SRI. K.R. VASUDEVAN, ADVOCATE) THIS ITA / INCOME TAX APPEAL IS FILED UNDER SEC.260-A OF INCOME TAX ACT 1961, ARISING OUT OF ORDER DATED 09/02/2023 PASSED IN ITA NO.1023/BANG/2022, FOR THE ASSESSMENT YEAR 2018-2019 PRAYING TO FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED ABOVE AND ETC. THIS APPEAL, COMING ON FOR HEARING, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: - 2 - 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 the appellants/Revenue and Sri. K.R.Vasudevan, 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 09.02.2023 passed by the Income Tax Appellate Tribunal, ‘B’ Bench, Bengaluru (for short ‘Appellate Authority’) in ITA.No.1023/Bang/2022 for the assessment year 2018-19. 3. This Court, admitted the appeal on 08.08.2023 to consider the following substantial questions of law: 1. "Whether on the facts and in the circumstances of the case, the Tribunal's can be said as perverse in nature in holding that when the profits from business is made on estimation basis, no further disallowances can be made by assessing authority"? 2. "Whether on the facts and in the circumstances of the case the Tribunal's order can be said as perverse in nature in holding that there was no purchases claimed by the assesse to invoke provisions of Section 40A(2) of the Act ignoring the fact that purchases is part of business activity though the same is not recorded in proper books of accounts"? 3. "Whether on the facts and in the circumstances of the case, the Tribunal's order can be said as perverse in nature in deleting the additions without appreciating that estimation of profits was made on the undisclosed business of the assesse on the basis of documents found during course of search and assesse had not maintained books of accounts recording the purchases"? 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. 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