Ita/712/2023 Of The Commissioner Of Income Tax v. M/S Rastriya Computer Saksharata Samithi

Digitallysigned by BLAVANYALocation:HIGHCOURT OFKARNATAKA NC: 2024:KHC:41508-DB ITA No. 712 of 2023 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. 712 OF 2023 BETWEEN: 1. THE COMMISSIONER OF INCOME TAX EXEMPTIONS, 6TH FLOOR, UNITY BUILDING ANNEXE, MISSION ROAD, BENGALURU 560027 EXEMPTIONS, 6TH FLOOR, UNITY BUILDING ANNEXE, MISSION ROAD, BENGALURU 560027 2. THE ASST COMMISSIONER OF INCOME TAX EXEMPTIONS CIRCLE, 1, GROUND FLOOR, ALBUQUERQUE HOUSE, OPP FORUM FIZA MALL, PANDESHWAR, MANGALURU 575001 EXEMPTIONS CIRCLE, 1, GROUND FLOOR, ALBUQUERQUE HOUSE, OPP FORUM FIZA MALL, PANDESHWAR, MANGALURU 575001 …APPELLANTS (BY SRI. DILIP M, ADVOCATE A/W SRI. RAVI RAJ Y V.,ADVOCATE) SRI. RAVI RAJ Y V.,ADVOCATE) AND: M/S RASTRIYA COMPUTER SAKSHARATA SAMITHI PM IV 1491, SHEIKMALE BUILDING, PUTTUR 574201 …RESPONDENT (BY SRI. SHREEHARI KUTSA,ADVOCATE) THIS ITA / INCOME TAX APPEAL IS FILED UNDER SEC.260-A OF INCOME TAX ACT 1961, PRAYING FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED TO THEREIN, ALLOW THE APPEAL AND SET ASIDE THE ORDERS PASSED BY THE INCOME TAX APPELLATE TRIBUNAL, BENGALURU IN ITA NO. 1098/BANG/2022 DATED 28/02/2023 FOR ASSESSMENT YEAR 2010-2011 ANNEXURE-A CONFIRMING THE ORDER OF THE APPELLATE COMMISSIONER AND CONFIRM THE ORDER PASSED BY THE ASST. COMMISSIONER OF INCOME TAX, EXEMPTIONS, CIRCLE-1, MANGALURU AND ETC. THIS APPEAL, COMING ON FOR FURTHER ORDERS, 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 learned counsel Sri Raviraj Y.V, for appellants/Revenue and learned counsel Sri Shreehari Kutsa, 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 28.02.2023 passed by the Income Tax Appellate Tribunal, ‘B’ Bench, Bengaluru (for short, ‘Appellate Authority’) in ITA.No.1098/Bang/2022 for the assessment year 2010-11, raising the following substantial questions of law: “1. Whether on the facts and in the circumstances of the case, the ITAT is correct in deleting the penalty by holding that additions made by the AO has been curtailed and assessed income is substantially reduced, while the income has not yet been quantified, as the CIT(A) has directed AO to bring to tax the net taxable income after verification as per the provisions of the Income Tax Act? 2. Whether on the facts and in the circumstances of the case, the ITAT ought to have directed to levy the penalty proportionately depending on the income that would be quantified in the order giving effect to the CIT(A) order? 3. Whether on the facts and in the circumstances of the case, the ITAT in correct in relying on the decision of Bombay High Court in the case of Bennet Coleman and Co. Ltd., - 33 taxmann.com 227 while the facts of the present case are distinguishable from the facts of the relied upon case?” 3. 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 - 4 - 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. 3. 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 - 4 - 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 BS List No.: 4 Sl No.: 16