Ita/531/2019 Of The Pr. Commissioner Of Income Tax v. M/S Bharat Mines And Minerals

Digitallysigned by BLAVANYALocation:HIGH COURT 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. 531 OF 2019 BETWEEN: 1. THE PR. COMMISSIONER OF INCOME-TAX, 5 FLOOR, BMTC BUILDING, 80 FEET ROAD, KORAMANGALA, BENGALURU 560 095. BMTC BUILDING, 80 FEET ROAD, KORAMANGALA, BENGALURU 560 095. 2. THE ASST. COMMISSIONER OF INCOME-TAX, CIRCLE-1(2)(1), OF INCOME-TAX, CIRCLE-1(2)(1), 2 FLOOR, BMTC BUILDING, BMTC BUILDING, 80 FEET ROAD, KORAMANGALA, BENGALURU 560 095. KORAMANGALA, BENGALURU 560 095. …APPELLANTS (BY SRI. DILIP M., A/W SRI. RAVIRAJ Y.V., ADVOCATES) - 2 - AND: M/S. BHARAT MINES AND MINERALS, FLAT NO.101, PRIDE ELITE, NO.10, MUSEUM ROAD, BENGALURU 560 001. PAN AAIFB 5964G. …RESPONDENT (BY SRI. K.R. PRADEEP, ADVOCATE FOR SMT. GIRIJA G.P., ADVOCATE) THIS ITA / INCOME TAX APPEAL IS FILED UNDER SEC.260-A OF INCOME TAX ACT 1961, ARISING OUT OF ORDER DATED 15/02/2019 PASSED IN ITA NO.1989/BANG/2018, FOR ASSESSMENT YEAR 2014-2015, 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: 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 learned counsel Sri.K.R.Pradeep and Smt. Girija.G.P., 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 15.02.2019 passed by the Income Tax Appellate Tribunal, ‘A’ Bench, Bengaluru (for short, ‘Appellate Authority’) in ITA.No.1989/Bang/2018 for the assessment year 2014-15. 3. This Court, admitted the appeal on 20.11.2019 to consider the following substantial questions of law: "(a) Whether tribunal was correct in arriving at a conclusion that assessee is entitled to depreciation on the mining assets, despite the fact that mining operations were suspended and thereby assets having not been put to use for business during the relevant financial year? (b) Whether the tribunal was correct in allowing depreciation on mining assets on the ground that assets belong to "Block of assets" though business activities were not conducted by the assessee as admitted, which would be mandatory under Section 32(1) of the Income Tax Act, 1961?" 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. - 5 - 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 SMJ List No.: 4 Sl No.: 9