Ita/716/2008 Of The Commissioner Of Income Tax v. Sri B Shankar Rao

IN THE HIGH COURT OF KARNATAKA AT BANGALORE DATED THIS THE 26 DAY OF AUGUST, 2014| PRESENT THR HON’BLE MR.JUSTICE N.KUMAR ANT) THR HON’ BLE MRS.JUSTICK RATHNAKALA ITA NO.716 OF 2008C/W ITA NO.712 OF 2008ITA NO.713 OF 2008ITA NO.714 OF 2008ITA NO.715 OF 2008 ITA CROB NO.1/2010 IN ITA NO.712/2008ITA CROB NO.2/2010 IN ITA NO.713/2008ITA CROB NO.3/2010 IN ITA NO.714/2008ITA CROB NO.4/2010 IN ITA NO.715/2008ITA CROB NO.9/2010 IN ITA NO.716/2008 I.T.A NO.716/2008 BE TW BE 1.)THE COMMISSIONER OF INCOME-TAX,2384/1, PARK VIEW BUILDING,2384/1, PARK VIEW BUILDING, v MAIN, P.J.EXTENSION,DAVANGERE-2..DAVANGERE-2.. oD. THER ASST. COMMISSIONBR OF INCOME-TAX (INV.), CIRCLE— 1(1),|HUBLI.HUBLI. .. APPBLLANTS (BY SRI JEEVAN J.NEERALGI, ADV.) - 2 - AND: HRI B.SHANKAR RAO,181, ‘A’ BLOCK, ‘A’ BLOCK, “DURGA NIVAS”, 10 CROSS,DEVARAJ URS LAYOUT,DAVANGE RE. SINCK DBAD BY HIS LRS:| A.|SMT.VIMALA BAILW/O SRI B.S.SHANKAR RAO,AGED ABOUT 62 YEARS,#60/3, BN B TRADING COMPANY, CHOWKIPET, DAVANAGERE.|W/O SRI B.S.SHANKAR RAO,AGED ABOUT 62 YEARS,#60/3, BN B TRADING COMPANY, CHOWKIPET, DAVANAGERE.| B.|SRI M.s.RAMESH,9/O SRI B.S.SHANKAR RAO,AGED ABOUT 47 YEARS,9/O SRI B.S.SHANKAR RAO,AGED ABOUT 47 YEARS, 6073/1, BN B TRADING COMPANY,CHOWKIPET, DAVANAGERE.|CHOWKIPET, DAVANAGERE.| C.ISRI B.S.ASHOK KUMAR9/O SRI B.S.SHANKAR RAO,AGED ABOUT 38 YEARS,9/O SRI B.S.SHANKAR RAO,AGED ABOUT 38 YEARS, 673, BN B TRADING COMPANY,CHOWKIPET, DAVANAGERE.|CHOWKIPET, DAVANAGERE.| D.SRI B.S.ARUN KUMAR9/O SRI B.S.SHANKAR RAO,AGED ABOUT 38 YEARS,#673, BN B TRADING COMPANY,CHOWKIPET, DAVANAGERE.|9/O SRI B.S.SHANKAR RAO,AGED ABOUT 38 YEARS,#673, BN B TRADING COMPANY,CHOWKIPET, DAVANAGERE.| BK.SRI B.S.PRAVEBEBEN KUM9/O SRI B.S.SHANKAR RAO,AGED ABOUT 30 YEARS,9/O SRI B.S.SHANKAR RAO,AGED ABOUT 30 YEARS, 073/1, BN B TRADING COMPANY,CHOWKIPET, DAVANAGERE.|CHOWKIPET, DAVANAGERE.| - 3 - H.SMT.ARCHANA G.NAVALE D/O SRI B.S.SHANKAR RAO,AGED ABOUT 40 YEARS,AGED ABOUT 40 YEARS, 3112, MCC ‘B’ BLOCK,/ MAIN, 10 CROSS, _/ MAIN, 10 CROSS, _ DAVANAGERE. G.SMT.POORNIMA, D/O SRI B.S.SHANKAR RAO, AGED ABOUT 37 YEARS, BEEJALI BANGLA,JIDHE NAGAR, BIBWEWADIJIDHE NAGAR, BIBWEWADI PUNE. .. RESPONDENTS. (BY SRI. ASSHANKAR AND SRI LAVA, ADVS.) THIS INCOMB TAX APPEAL IS FILED UNDER|SECTION 260-A OF LT. ACT, 1961 ARISING OUT OF)ORDER DATED 31-01-2008 VIDE ANNEBEXURE —-— A PASIN [T(Ssj)A NO.112/BNG/2002, FOR THE ASSESSMENTYEAR BLOCK PERIOD 1/4/1987 TO 28/8/1997, PRAYING|THAT THIS HON'BLE COURT MAY BRB PLEASBKD TO 1.|FORMULATE THE SUBSTANTIAL OUESTIONS OFLAW STATED THEREIN,LAW STATED THEREIN, IL.|ALLOW THERE APPEAL AND SET ASIDE THE ORDEPASSED BY THE ITAT BANGALORE IN IT(SS)A NO.|112/BNG/2002, DATED 31-01-2008 CONFIRM THE|ORDERS OF THE ASSESSING OFFICER.PASSED BY THE ITAT BANGALORE IN IT(SS)A NO.|112/BNG/2002, DATED 31-01-2008 CONFIRM THE|ORDERS OF THE ASSESSING OFFICER. I.T.A NO.712/2008 BBRTW BB 1.THE COMMISSIONER OF INCOME-TAX, 2384/1, PARK VIEW BUILDING, v MAIN, P.J.EXTENSION, DAVANGERE-2.. 2. ‘THERE ASST. COMMISSIONER OFINCOME-TAX (INV.), CIRCLE —- 1(1),HUBLI.INCOME-TAX (INV.), CIRCLE —- 1(1),HUBLI. .. APPELLANTS (BY SRI JEEVAN J.NEERALGI, ADV.) AND: SRI B.S. ASHOK KUMAR,18, DURGA NIVAS,DEVARAJ URS LAYOUT,DAVANGE RE. ~.. RESPONDE (BY SRI A.SHANKAR AND M.LAVA, ADVS.) THIS INCOMB TAX APPEAL IS FILED UNDER|SECTION 260-A OF LT. ACT, 1961 ARISING OUT OF)ORDERDATHD.31-01-2008PASSED.IN-IT(SS)ANO.107/BNG/2002, FOR THE ASSESSMENT YEAR BLOCK|PERIOD 1/4/1987 TO 28/8/1997, PRAYING THAT THIS|HON'BLEK COURT MAY BRB PLEASED TO 1.|FORMULATE THE SUBSTANTIAL OUESTIONS OFLAW STATED THEREIN,LAW STATED THEREIN, IL.|ALLOW THERE APPEAL AND SET ASIDE THE ORDEPASSED BY THE ITAT BANGALORE IN IT(SS)A NO.|107/BNG/2002,DATED|31-01-2008VIDE|ANNEXURE - A CONFIRM THE ORDERS OF THE!ASSESSING OFFICER.PASSED BY THE ITAT BANGALORE IN IT(SS)A NO.|107/BNG/2002,DATED|31-01-2008VIDE|ANNEXURE - A CONFIRM THE ORDERS OF THE!ASSESSING OFFICER. I.T.A NO.713/2008 AND: SRI B.S. ASHOK KUMAR,18, DURGA NIVAS,DEVARAJ URS LAYOUT,DAVANGE RE. ~.. RESPONDE (BY SRI A.SHANKAR AND M.LAVA, ADVS.) THIS INCOMB TAX APPEAL IS FILED UNDER|SECTION 260-A OF LT. ACT, 1961 ARISING OUT OF)ORDERDATHD.31-01-2008PASSED.IN-IT(SS)ANO.107/BNG/2002, FOR THE ASSESSMENT YEAR BLOCK|PERIOD 1/4/1987 TO 28/8/1997, PRAYING THAT THIS|HON'BLEK COURT MAY BRB PLEASED TO 1.|FORMULATE THE SUBSTANTIAL OUESTIONS OFLAW STATED THEREIN,LAW STATED THEREIN, IL.|ALLOW THERE APPEAL AND SET ASIDE THE ORDEPASSED BY THE ITAT BANGALORE IN IT(SS)A NO.|107/BNG/2002,DATED|31-01-2008VIDE|ANNEXURE - A CONFIRM THE ORDERS OF THE!ASSESSING OFFICER.PASSED BY THE ITAT BANGALORE IN IT(SS)A NO.|107/BNG/2002,DATED|31-01-2008VIDE|ANNEXURE - A CONFIRM THE ORDERS OF THE!ASSESSING OFFICER. I.T.A NO.713/2008 BBRTW BB Ll.THE COMMISSIONER OF INCOME-TAX,284/1, PARK VIEW BUILDING,284/1, PARK VIEW BUILDING, v MAIN, P.J.EXTENSION,DAVANGERE-2.. 2. THE ASST. COMMISSIONER OFINCOME-TAX (INV.), CIRCLE —- 1(1),HUBLI. .. APPBLLANTS (BY SRI JEEVAN J.NEERALGI, ADV.) AND: SMT. VIMALA BAT,18, ‘A’ BLOCK, *A’ BLOCK,“DURGA NIVAS”, 10 CROS5s,DEVARAJ URS LAYOUT, DAVANGERE. _ RESPONDENT (BY SRI A.SHANKAR AND M.LAVA, ADVS.) THIS INCOMB TAX APPEAL [IS FILED UNDERSECTION 260-A OF LT. ACT, 1961 ARISING OUT OF)ORDER DATED 31-01-2008 VIDE ANNEXURE - A PASSEDIN IT(SS)A NO.108/BNG/2002, FOR THE ASSESSMENT|YEAR BLOCK PERIOD 1/4/1987 TO 28/8/1997, PRAYING|THAT THIS HON'BLE COURT MAY BE PLEASED TO: 1.FORMULATE THE SUBSTANTIAL OUESTIONS OFLAW SIATED THEREIN,LAW SIATED THEREIN, Il.ALLOW THR APPBAL AND SET ASIDE THE ORDER|PASSED BY THE ITAT BANGALORE IN IT(SS)A NO.|108/BNG/2002,DATED|31-01-2008VIDE|ANNBXURE —-— A CONFIRM THR ORDERS OF THASSESSING OFFICER.PASSED BY THE ITAT BANGALORE IN IT(SS)A NO.|108/BNG/2002,DATED|31-01-2008VIDE|ANNBXURE —-— A CONFIRM THR ORDERS OF THASSESSING OFFICER. I.T.A NO.714/2008 BBRTWERE 1.)THE COMMISSIONER OF INCOME-TAX, 284/1, PARK VIEW BUILDING,4 MAIN, P.J.EXTENSION,DAVANGERE-2.. 2. THE ASST. COMMISSIONER OFINCOME-TAX (INV.), CIRCLE —- 1(1),HUBLI. .. APPBLLANTS (BY SRI JEEVAN J.NEERALGI, ADV.) AND: DORI B.S.ARUN KUMAR,M/S. B.N.B. TRADING CO., 73/1, CHOWKIPET,DAVANGERE. _ RESPONDENT (BY SRI A.SHANKAR AND M.LAVA, ADVS.) THIS INCOMB TAX APPEAL [IS FILED UNDERSECTION 260-A OF LT. ACT, 1961 ARISING OUT OF)ORDERDATEHD31-01-2008PASSEDIN-IT(SS)ANO.109/BNG/2002, FOR THE ASSESSMENT YEAR BLOCK|ASSESSMENT 1/4/1987 TO 28/8/1997, PRAYING THAT|THIS HON'BLE COURT MAY BE PLEASED TO: 1.FORMULATE THE SUBSTANTIAL OUESTIONS OFLAW SIATED THEREIN,LAW SIATED THEREIN, Il.ALLOW THER APPBAL AND SBT ASIDE THE ORDERPASSED BY THE ITAT BANGALORE IN IT(SS)A NO.|109/BNG/2002,DATED|31-01-2008VIDE|ANNBXURE —-— A CONFIRM THR ORDERS OF THASSESSING OFFICER.PASSED BY THE ITAT BANGALORE IN IT(SS)A NO.|109/BNG/2002,DATED|31-01-2008VIDE|ANNBXURE —-— A CONFIRM THR ORDERS OF THASSESSING OFFICER. I.T.A NO.715/2008 BBRTWERE 1.)THE COMMISSIONER OF INCOME-TAX, 284/1, PARK VIEW BUILDING,4 MAIN, P.J.EXTENSION,DAVANGERE-2.. 2. THE ASST. COMMISSIONER OFINCOME-TAX (INV.), CIRCLE —- 1(1),HUBLI. .. APPBLLANTS (BY SRI JEEVAN J.NEERALGI, ADV.) AND: DORI B.S.RAMESH,181, ‘A’ BLOCK, “DURGA NIVAS”,10 CROSS,DEVARAJ URS LAYOUT,DAVANGE RE. ~.. RESPONDE (BY SRI A.SHANKAR AND M.LAVA, ADVS.) THIS INCOMB TAX APPEAL IS FILED UNDER|SECTION 260-A OF LT. ACT, 1961 ARISING OUT OF)ORDERDATHD.31-01-2008PASSED.IN-IT(SS)ANO.111/BNG/2002, FOR THE ASSESSMENT YEAR BLOCK|PERIOD 1/4/1987 TO 28/8/1997, PRAYING THAT THIS|HON'BLEK COURT MAY BRB PLEASED TO 1.|FORMULATE THE SUBSTANTIAL OUESTIONS OFLAW STATED THEREIN,LAW STATED THEREIN, IL.|ALLOW THERE APPEAL AND SET ASIDE THE ORDEPASSED BY THE ITAT BANGALORE IN IT(SS)A NO.|111/BNG/2002,.DATEHD31-01-2008VIDE|ANNEXURE - A CONFIRM THE ORDERS OF THE!ASSESSING OFFICER.PASSED BY THE ITAT BANGALORE IN IT(SS)A NO.|111/BNG/2002,.DATEHD31-01-2008VIDE|ANNEXURE - A CONFIRM THE ORDERS OF THE!ASSESSING OFFICER. I.T.A CROB NO.O1/2010 IN I.T.A NO.712/2008 - 8 - ~.. RESPONDE (BY SRI A.SHANKAR AND M.LAVA, ADVS.) THIS INCOMB TAX APPEAL IS FILED UNDER|SECTION 260-A OF LT. ACT, 1961 ARISING OUT OF)ORDERDATHD.31-01-2008PASSED.IN-IT(SS)ANO.111/BNG/2002, FOR THE ASSESSMENT YEAR BLOCK|PERIOD 1/4/1987 TO 28/8/1997, PRAYING THAT THIS|HON'BLEK COURT MAY BRB PLEASED TO 1.|FORMULATE THE SUBSTANTIAL OUESTIONS OFLAW STATED THEREIN,LAW STATED THEREIN, IL.|ALLOW THERE APPEAL AND SET ASIDE THE ORDEPASSED BY THE ITAT BANGALORE IN IT(SS)A NO.|111/BNG/2002,.DATEHD31-01-2008VIDE|ANNEXURE - A CONFIRM THE ORDERS OF THE!ASSESSING OFFICER.PASSED BY THE ITAT BANGALORE IN IT(SS)A NO.|111/BNG/2002,.DATEHD31-01-2008VIDE|ANNEXURE - A CONFIRM THE ORDERS OF THE!ASSESSING OFFICER. I.T.A CROB NO.O1/2010 IN I.T.A NO.712/2008 - 8 - BBRITIWE SRI B.S.ASHOK KUMAR|NO.181, DURGA NIVAS,DEVARAJ URS LAYOUT,DAVANGERE - 577 OO1. CROSS OBJECTOR| (BY SRI A.SHANKAR AND SRI M.LAVA, ADVS.) AND: Ll.THE COMMISSIONER OF INCOME-TAX,284/1, PARK VIEW BUILDING,4 MAIN, P.J.EXTENSION,DAVANGEHKRE-577 OO2284/1, PARK VIEW BUILDING,4 MAIN, P.J.EXTENSION,DAVANGEHKRE-577 OO2 2. THE ASSISTANT COMMISSIONBR OF INCOME-TAX (INV.), CIRCLE —- 1(1), NAVANAGAR,HUBLI — 580 O25.HUBLI — 580 O25. .. RESPONDENT I.T.A CROB NO.02/2010IN I.T.A NO.713/2008 BBRTW BB SMT. VIMALA BAI.NO.181, DURGA NIVAS,DEVARAJ URS LAYOUT, DAVANGERE - 577 OO1. CROSS OBJECTOR| (BY SRI A.SHANKAR AND SRI M.LAVA, ADVS.) AND: Ll.THE COMMISSIONER OF INCOME-TAX,284/1, PARK VIEW BUILDING,284/1, PARK VIEW BUILDING, - 9 - v MAIN, P.J.EXTENSION,DAVANGEBRE-577 OO2. 2. THE ASSISTANT COMMISSIONBR OFINCOME-TAX (INV.),CIRCLE — 1(1), NAVANAGAR,HUBLI — 580 O25.INCOME-TAX (INV.),CIRCLE — 1(1), NAVANAGAR,HUBLI — 580 O25. _ RESPONDENTS I.T.A CROB NO.03/2010IN I.T.A NO.714/2008 BE TW BE DORI B.S.ARUN KUMAR,NO.181, DURGA NIVAS,DEVARAJ URS LAYOUT,DAVANGERE — 577 OO1. ~. CROSS OBJECTOR (BY SRI A.SHANKAR AND SRI M.LAVA, ADVS.) AND: Ll.THE COMMISSIONER OF INCOME-TAX,2384/1, PARK VIEW BUILDING,2384/1, PARK VIEW BUILDING, v MAIN, P.J.EXTENSION,DAVANGEBRE-577 OO2. 2. THE ASSISTANT COMMISSIONBR OF INCOME-TAX (INV.), CIRCLE —- 1(1), NAVANAGAR,HUBLI — 580 O25.CIRCLE —- 1(1), NAVANAGAR,HUBLI — 580 O25. _ RESPONDENTS I.T.A CROB NO.04/2010IN I.T.A NO.715/2008 BBRTWERE SRI M.S. RAMESH| NO.181, DURGA NIVAS,DEVARAJ URS LAYOUT, DAVANGERE - 577 OO1. CROSS OBJECTOR| (BY SRI A.SHANKAR AND SRI M.LAVA, ADVS.) AND: 1.)THE COMMISSIONER OF INCOME-TAX,284/1, PARK VIEW BUILDING,4 MAIN, P.J.EXTENSION,DAVANGEBRE-577 OO2. 2. ‘THE ASSISTANT COMMISSIONER OFINCOME-TAX (INV.), CIRCLE —- 1(1), NAVANAGAR,HUBLI — 580 O25.INCOME-TAX (INV.), CIRCLE —- 1(1), NAVANAGAR,HUBLI — 580 O25. ~.. RESPONDENTS I.T.A CROB NO.09/2010IN I.T.A NO.716/2008 BBRTW BB LATE SRI B.S.SHANKAR RAO.REP. BY ITS L/R’S SRI.M.S.RAMESHNO.181, DURGA NIVAS,DEVARAJ URS LAYOUT,DAVANGERE — 577 OO1. CROSS OBJECTOR| (BY SRI A.SHANKAR AND SRI M.LAVA, ADVS.) ANT) 1.)THE COMMISSIONER OF INCOME-TAX,284/1, PARK VIEW BUILDING, v MAIN, P.J.EXTENSION,DAVANGERE-577 OO2. 2. ‘THE ASSISTANT COMMISSIONER OF INCOME-TAX (INV.), CIRCLE —- 1(1), NAVANAGAR, HUBLI — 580 O25. .. RESPONDENT THESE ITA CROBs ARE FILED UNDER ORDER XLI,RULE 22 OF CPC 1908, ARISING OUT OF ORDER DATED|31-01-2008FOR|THERBLOC KASSKHSSMEBNYBRARS01/04/1987TO28/08/1997.IN-IT(SS)ANOS.107/BANG/2002, 108/BANG/2002, 109/BANG/ 2002,111/BANG/2002 AND 112/BANG/2002 RESPECTIVELY,|PRAYING THAT THIS HON'BLEKE COURT MAY BR PLEASETO: 1.FORMULATE THE SUBSTANTIAL QUESTIONS OFLAW STATED THEREIN,LAW STATED THEREIN, Il.ALLOW THR CROSS OBJBCTIONS ARISING OUT OF!THE ORDERS OF THE TRIBUNAL BEARING IT(SS)A|NOS.107/BANG/2002,108/BANG/ 2002,109/BANG/2002,111/BANG/2002ANI)112/BANG/2002,DATHKh31-01-2008,RESPECTIVELY, IN THE INTEREST OF JUSTICE ANDEOUITY..THE ORDERS OF THE TRIBUNAL BEARING IT(SS)A|NOS.107/BANG/2002,108/BANG/ 2002,109/BANG/2002,111/BANG/2002ANI)112/BANG/2002,DATHKh31-01-2008,RESPECTIVELY, IN THE INTEREST OF JUSTICE ANDEOUITY.. THESE ITA CROBs ARE FILED UNDER ORDER XLI,RULE 22 OF CPC 1908, ARISING OUT OF ORDER DATED|31-01-2008FOR|THERBLOC KASSKHSSMEBNYBRARS01/04/1987TO28/08/1997.IN-IT(SS)ANOS.107/BANG/2002, 108/BANG/2002, 109/BANG/ 2002,111/BANG/2002 AND 112/BANG/2002 RESPECTIVELY,|PRAYING THAT THIS HON'BLEKE COURT MAY BR PLEASETO: 1.FORMULATE THE SUBSTANTIAL QUESTIONS OFLAW STATED THEREIN,LAW STATED THEREIN, Il.ALLOW THR CROSS OBJBCTIONS ARISING OUT OF!THE ORDERS OF THE TRIBUNAL BEARING IT(SS)A|NOS.107/BANG/2002,108/BANG/ 2002,109/BANG/2002,111/BANG/2002ANI)112/BANG/2002,DATHKh31-01-2008,RESPECTIVELY, IN THE INTEREST OF JUSTICE ANDEOUITY..THE ORDERS OF THE TRIBUNAL BEARING IT(SS)A|NOS.107/BANG/2002,108/BANG/ 2002,109/BANG/2002,111/BANG/2002ANI)112/BANG/2002,DATHKh31-01-2008,RESPECTIVELY, IN THE INTEREST OF JUSTICE ANDEOUITY.. THESE ITAs. AND ITA CROSS OBJECTIONS COMING|ON FOR ADMISSION THIS DAY,N. KUMAR 9DBLIVEREBIDTHR FOLLOWING: JU DGMENT TheseappealsaTé€preferredby|theRevenue,challenging the order passed by the Tribunal, which has heldthat the order of block assessment year is barred by|limitation. ”.2. We have heard the learned Counsel for the Revenue 3. In fact, he submitted that the substantial questions| of law in these appeals are similar to that ofC.RamaiahReddy Vs. Assistant Commissioner of Income Tax (IMV)|reported tn [2011] 339 ITR 210 (Karn),wherein this Court.had passed a detailed order and allowed the appeal. Thesaid judgment is pending before the Apex Court. | 4. In that view, we do not find any merit in these)appeals and hold that the assessment is barred bylimitation. The substantial questions of law involved isanswered in favour of the assessee. Accordingly, the appealsare dismissed. In the event, the Revenue succeeds in theappeal before the Apex Court, liberty is reserved to revivethese appeals. o. In view of the judgment of this Court in the case of| Smt.Jyotht Kumart Vs. Assistant Commissioner of Income Tax reported in (2012) 344 ITR 60(Kar)>a wherein, it is held that the cross-objection is not I7EA?7EA7=96�EA�?56�EACFI6�?7L�8:FC66<EAD4��?5646�C:F44!F=K6C?EFA4�7:6�<E4IE446<� ��� �������� A@K ������� ��������