Ita/684/2019 Of The Pr Commissioner Of Income Tax v. M/S.first Advantage Global Operating Centre Pvt. Ltd

Digitally signed byBHARATHI SLocation:HIGH COURTOFKARNATAKA NC: 2024:KHC:40402-DB ITA No. 684 of 2019 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.684 OF 2019 BETWEEN: 1. THE PR. COMMISSIONER OF INCOME-TAX, 5 FLOOR, BMTC BUILDING, 80 FEET ROAD, KORAMANGALA, BENGALURU 560 095. 2. THE JOINT COMMISSIONER OF INCOME-TAX, (OSD), CIRCLE 3(1)(1), PRESENT ADDRESS, JCIT, SPECIAL RANGE -3, 2 FLOOR, BMTC BUILDING, 80 FEET ROAD, KORAMANGALA, BENGALURU 560 095 80 FEET ROAD, KORAMANGALA, BENGALURU 560 095 …APPELLANTS (BY SRI. DILIP M ., ADVOCATE A/W SRI. RAVIRAJ Y.V., ADVOCATE) - 2 - AND: M/S. FIRST ADVANTAGE GLOBAL OPERATING CENTRE PVT. LTD., LTD, (M/S. FIRST ADVANTAGE OFFSHORE SERVICES PVT. LTD), LEVEL-1, EXPLORER BUILDING, INTERNATIONAL PARK, WHITEFIELD ROAD, BENGALURLU 560 066. PAN …RESPONDENT (BY SMT. M.R. VANAJA, ADVOCATE) THIS ITA / INCOME TAX APPEAL IS FILED UNDER SEC.260-A OF INCOME TAX ACT 1961, ARISING OUT OF ORDER DATED 03.04.2019 PASSED IN IT(TP)A NO. 888/BANG/2013, FOR THE ASSESSMENT YEAR 2005-2006, PRAYING TO I. FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED ABOVE. 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 Smt.M.R.Vanaja for 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 03.04.2019 passed by the Income Tax Appellate Tribunal, ‘B’ Bench, Bengaluru (for short, ‘Appellate Authority’) in IT(TP)A.No.888/Bang/2013 for the assessment year 2005-06. 3. This Court, admitted the appeal on 09.01.2020 to consider the following substantial question of law: "Whether the Tribunal while passing the impugned order has failed to take into account the provisions contained in Rule 10-B of the Income Tax Rules?" 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 NC: 2024:KHC:40402-DBITA No. 684 of 2019 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.: 13