Ita/593/2022 Of The Pr.commissioner Of Income Tax v. K G Krishna

Digitally signedby BHARATHISLocation: HIGHCOURT OFKARNATAKA NC: 2024:KHC:41271-DB IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 30 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. 593 OF 2022 BETWEEN: 1. THE PR.COMMISSIONER OF INCOME TAX CENTRAL CIRCLE, 3RD FLOOR, C.R.BUILDING, QUEENS ROAD, BENGALURU-560 001. CENTRAL CIRCLE, 3RD FLOOR, C.R.BUILDING, QUEENS ROAD, BENGALURU-560 001. 2. THE DEPUTY COMMISSIONER OF INCOME TAX CENTRAL CIRCLE -1(4) CENTRAL CIRCLE -1(4) PRESENT ADDRESS DCIT, CENTRAL CIRCLE-2(4) DCIT, CENTRAL CIRCLE-2(4) 3RD FLOOR, C.R.BUILDING, QUEENS ROAD, BENGALURU-560 001. …APPELLANTS (BY SRI. DILIP M, ADVOCATE A/W SRI. RAVI RAJ Y V.,ADVOCATE) AND: K G KRISHNA NO.1680/55, JAYAKRISHNA NILAYA 5TH A CROSS, 10TH MAIN ROAD, 2ND BLOCK, BANASHANKARI 1ST STAGE, BENGALURU-560 060. PAN APGPK 8490K. …RESPONDENT (RESPONDENT SERVED) THIS ITA / INCOME TAX APPEAL IS FILED UNDER SEC.260-A OF INCOME TAX ACT 1961 PRAYING TO FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED ABOVE, ALLOW THE APPEAL AND SET ASIDE THE ORDERS PASSED BY THE INCOME-TAX APPELLATE TRIBUNAL, BENGALURU IN ITA NO. 311/BANG/2020 DATED 24.06.2022 FOR ASSESSMENT YEAR 2011-2012 ANNEXURE C AND CONFIRM THE ORDER OF THE APPELLATE COMMISSIONER CONFIRMING THE ORDER PASSED BY THE DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL RANGE 1(4), BENGALURU 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., 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 24.06.2022 passed by the Income Tax Appellate Tribunal, ‘C’ Bench, Bengaluru (for short, ‘Appellate Authority’) in ITA.No.311/Bang/2020 for the assessment year 2011-12, raising the following substantial questions of law: “1. Whether on the facts and in the circumstances of the case and law, the circumstances of the case and law, the 2. 3. 4. Tribunal is right in law in deleting the additions made by assessing authority by holding that there are no incriminating materials on which additions are made ignoring that the incriminating materials were found against assessee in search conducted in case of assessee in pursuance to the provisions of Section 132 of the Act? Whether, on the facts and in the circumstances of the case and law, the Tribunal’s order can be said as perverse in holding that additions made by assessing authority cannot be sustained in law ignoring mandate of sections 153A and 132 Act? Whether on the facts and in the circumstances of the case, the Tribunal is right in law deleting additions ignoring findings of the assessing authority? Whether on the facts and in the circumstances of the case, the lapse of time for issuance of notice under Section 143(2) of the Act be considered as conclusion of assessment proceedings under section 143(2) of the Act when same is not specifically stipulated under the provisions of the Act?” 3. It is noticedthat the tax effect in this appeal is less than Rs.2 Crores and therefore, the appeal would not be maintainable 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. In view of the aforesaid submissions, the appeal 3. It is noticedthat the tax effect in this appeal is less than Rs.2 Crores and therefore, the appeal would not be maintainable 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. 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