Ita/512/2007 Of The Commissioner Of Income Tax v. Sri P B Srinivas

IN THE HIGH COURT OF KARNATAKA AT BANGALORE. DATED THIS THE 25[th]DAY OF FEBRUARY 2014. PRESENT THE HON‘'BLE MR. JUSTICE DILIP B BHOSALE AND| THE HON‘'BLE MR. JUSTICE B MANOHAR ITA.NO.512/2007 C/W ITA.NO.540/200/7 | IN ITA.NO.512/200/ BETWEEN 1.THE COMMISSIONER OF INCOME TAX. CENTRAL CIRCLE, C.R.BUILDING QUEENS ROAD, BANGALORE 2.THE DEPUTY COMMISSIONER OF INCOME TAX CENTRAL CIRCLE IV| BANGALORE |.., APPELLANTS (BY SRI K V ARAVIND, ADV.,). AND SRI PB SRINIVAS| F-61, /TH CROSS, IST MAIN GAYATHRI NAGAR.BANGALORE | .., RESPONDENT (BY SRI A SHANKAR & SRI M LAVA, ADVS.,) THIS I.T.A. FILED U/S.260-A OF I.T.ACT 1961 ARISINGOUT OF ORDER DATED 30-11-2006 PASSED IN ITA(SS)A\103/BANG/2002 FOR THE BLOCK ASSESSMENT YEAR 1988-89|TO 1998-1999, PRAYING TO: I. FORMULATE THE SUBSTANTIAL|QUESTIONS OF LAW STATED THEREIN, II. ALLOW THE APPEAL| AND SEI ASIDE THE ORDERS PASSED BY THE MIITATBANGALORE IN IT(SS)A 103/BANG/2002 DATED 30-11-2006|CONFIRMING THE ORDER OF THE APPELLATE COMMISSIONER|AND|CONFIRMTHEORDER|PASSEDBY|THE|DY.,COMMISSIONEROF.INCOME.TAX,|CENTRALCIRCLE-IV, —BANGALORE, IN THE INTEREST OF JUSTICE AND EQUITY. IN ITA.NO.540/200/7 BETWEEN 1.THE COMMISSIONER OF INCOME TAX.CENTRAL CIRCLE, C.R.BUILDINGCENTRAL CIRCLE, C.R.BUILDING QUEENS ROAD, BANGALORE 2.THE DEPUTY COMMISSIONER OF INCOME TAXCENTRAL CIRCLE IV, C.R. BUILDINGQUEENS ROAD, BANGALORE.., APPELLANTSCENTRAL CIRCLE IV, C.R. BUILDINGQUEENS ROAD, BANGALORE.., APPELLANTS (BY SRI K V ARAVIND, ADV.,). AND SRI PB RAMAMURTHY.NO.C-20, I CROSS, 8TH MAIN.VASAN THANAGARBANGALORE | .., RESPONDENT (BY SRI A SHANKAR & SRI M LAVA, ADVS.,) THIS ITA FILED U/S.260-A OF I.T.ACT, 1961 ARISING|OUT OF ORDER DATED 30-11-2006 PASSED IN IT(SS)A|90/BANG/2002 FOR THE BLOCK ASSESSMENT PERIOD 1988-89|TO 1998-99, PRAYING TO: I. FORMULATE THE SUBSTANTIAL|QUESTIONS OF LAW STATED THEREIN, II. ALLOW THE APPEAL|AND SET ASIDE THE ORDER PASSED BY THE ITAT, BANGALORE|IN IT(SS)A 90/BANG/2002 DATED 30-11-2006 CONFIRMING|THE ORDER OF THE APPELLATE COMMISSIONER AND CONFIRM|THE ORDER PASSED BY THE DEPUTY COMMISSIONER OF| INCOME TAX, CENTRAL CIRCLE-IV, BANGALORE, IN THEINTEREST OF JUSTICE AND EQUITY.|INTEREST OF JUSTICE AND EQUITY.| THESE ITAs. COMING ON FOR HEARING, THIS’ DAY, | Dilip B. Bnosale J.DELIVERED THE FOLLOWING: PC: Tnese Income Tax Appeals are against the orderdated 30.11.2006 passed by Income Tax Appellate)Tribunal|(for.snort.‘tne|Tribunal)InIT(SS)ANo.90(Bang)/2002 for the block period 1988-89 to1998-99 and in ITA(SS)A No.103(Bang)/2002 for the Dilockperiod 1988-89 and 1998-99. The substantial questions of|law raised in these appeals are centered round Section |292C, inserted vide Finance Act, 2007 in the Income Tax|Act, 1961 (for short ‘the IT Act’). The Finance Act cameinto force in 2007 whereby Section 292C was inserted in)the IT Act with effect from 1[st]day of October, 1975. Dateof the common order of the Tribunal, which is impugned in|these appeals, is 30.11.2006. It is thus, very obvious|that the amendment came into force vide Finance Act,|2007 after the order of the Tribunal. It is, in this view of)the matter, our attention was invited to the Judgment of) the Supreme Court inCommissioner of Income Tax,| Hyderabad -vs- M.J.Swamy (2002) 10) SCC 128.In|this judgment, the Supreme Court expressed a view that ifthe amendment wnich is given retrospective effect has any|bearing on the issue involved in the appeal, it requires re-consideration. In view thereof, learned counsel appearing|for the parties have agreed for setting aside the order ofthe Tribunal and remand of the appeals to the Tribunal for|its consideration in the light of insertion of Section 292C of|the Finance Act, 2007/7 with retrospective effect fro01.10.1975. Learned counsel for the parties are ad-idem|that the amendment by wnhicn Section 292C was insertednas bearing on merits of tne case. | 2).In the circumstances, we deem it proper to setaside the order of the Tribunal without entering into merits.of the case. Order accordingly. Hyderabad -vs- M.J.Swamy (2002) 10) SCC 128.In|this judgment, the Supreme Court expressed a view that ifthe amendment wnich is given retrospective effect has any|bearing on the issue involved in the appeal, it requires re-consideration. In view thereof, learned counsel appearing|for the parties have agreed for setting aside the order ofthe Tribunal and remand of the appeals to the Tribunal for|its consideration in the light of insertion of Section 292C of|the Finance Act, 2007/7 with retrospective effect fro01.10.1975. Learned counsel for the parties are ad-idem|that the amendment by wnhicn Section 292C was insertednas bearing on merits of tne case. | 2).In the circumstances, we deem it proper to setaside the order of the Tribunal without entering into merits.of the case. Order accordingly. Tne appeals which were decided by the impugnedorder stand restored to file. The Tribunal shall consider|the appeals afresh in the light of the Finance Act, 2007. It IS needless to mention tnat tne Tribunal snall consider the.appeals afresh on merits in accordance with law and,without being influenced by its earlier order and by thisorder. All contentions of the parties are left open. The)Tribunal shall endeavour to decide the appeals as)expeditiously as possible and preferably, within a period of|eight months from the date of receipt of this order. — With these directions,the appeals are disposed of.No costs,Sd/-JUDGE. Sd/-JUDGE| TL