Ita/80/2022 Of Pr Commissioner Of Income Tax And Another v. J P Distilleries Pvt Ltd

Digitally signedby BHARATHI SLocation: HIGHCOURT OFKARNATAKA NC: 2024:KHC:40420-DBITA No. 80 of 2022 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.80 OF 2022 BETWEEN: 1. PR COMMISSIONER OF INCOME TAX AND ANOTHER BMTC COMPLEX KORAMANGALA BANGALORE 2. THE INCOME TAX OFFICER OFFICER WARD-4(1)(1) BENGALURU …APPELLANTS (BY SRI. SANMATHI E.I., ADVOCATE) AND: J P DISTILLERIES PVT LTD NO. 219/11, J P CROP, BELLARY ROAD, - 2 - NC: 2024:KHC:40420-DB ITA No. 80 of 2022 SADASHIVANAGAR BENGALURU-560080. PAN (BY SRI. S PARTHASARATHI.,ADVOCATE) …RESPONDENT THIS ITA/INCOME TAX APPEAL IS FILED UNDER SEC.260-A OF INCOME TAX ACT 1961, ARISING OUT OF ORDER DATED 08.03.2021 PASSED IN ITA NO.51/BANG/2019 FOR THE ASSESSMENT YEAR 2011-2012 PRAYING TO DECIDE THE FOREGOING QUESTION OF LAW AND / OR SUCH OTHER QUESTIONS OF LAW AS MAY BE FORMULATED BY THE HON'BLE COURT AS DEEMED FIT 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 - 3 - ORAL JUDGMENT (PER: HON'BLE MR JUSTICE S.G.PANDIT) Heard the learned counsel Sri. E.I.Sanmathi for the appellants/Revenue and Sri. S.Parthasarathi, 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 08.03.2021 passed by the Income Tax Appellate Tribunal, ‘A’ Bench, Bengaluru (for short ‘Appellate Authority’) in ITA.No.51/Bang/2019 for the assessment year 2011-12. 3. This Court, admitted the appeal on 14.09.2023 to consider the following substantial questions of law: 1.“Whether on the facts and in the circumstances of the case, the Tribunal’s order can be said as perverse in nature in holding that re-assessment order has been passed been passed on change of opinion when assessing authority in original assessment circumstances of the case, the Tribunal’s order can be said as perverse in nature in holding that re-assessment order has been passed been passed on change of opinion when assessing authority in original assessment order had not rendered any opinion on the issues that were raised in the re-assessment proceedings and conditions set out in section 148 were fully satisfied in case of assessee?” 2.“Whether on the facts and in the circumstances of the case, the Tribunal’s is right in law in holding that no new facts were relied upon by assessing authority while passing re-assessment order ignoring that assessing authority had initiated re-assessment proceeding on recording satisfaction as required under section 148 of the Act?” circumstances of the case, the Tribunal’s is right in law in holding that no new facts were relied upon by assessing authority while passing re-assessment order ignoring that assessing authority had initiated re-assessment proceeding on recording satisfaction as required under section 148 of the Act?” 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 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 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.: 34