Ita/94/2023 Of The Pr Commissioner Of Income Tax v. Late Smt K Leelavathy

Digitally signed byBHARATHI SLocation:HIGH COURTOFKARNATAKA NC: 2024:KHC:40655-DBITA No. 94 of 2023 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.94 OF 2023 BETWEEN: 1. THE PR. COMMISSIONER OF INCOME-TAX 5 FLOOR, BMTC BUILDING, 5 FLOOR, BMTC BUILDING, 80 FEET ROAD, KORMANGALA, BENGALURU-560 095. 2. THE DEPUTY COMMISSIONER OF INCOME-TAX CENTRAL CIRCLE-1(3), PRESENT ADDRESS CENTRAL CIRCLE-1(3), PRESENT ADDRESS ITO,WARD-5(2)(1), 2 FLOOR, BMTC BUILDING, 80 FEET ROAD, KORMANGALA, BENGALURU-560 095. BENGALURU-560 095. …APPELLANTS (BY SRI. DILIP.M., ADVOCATE A/W SRI. RAVIRAJ.Y.V., ADVOCATE) AND: LATE SMT.K. LEELAVATHY BY L/R SHRI M.THIMMEGOWDA F-113, CENTRAL CHAMBERS, NC: 2024:KHC:40655-DB ITA No. 94 of 2023 2-C & D, 2 FLOOR, 2 MAIN, GANDHINAGAR, BENGALURU-560 009. PAN: ABRPL 1523B. …RESPONDENT (BY SRI. NARENDRA KUMAR J.JAIN, ADVOCATE) THE INCOME TAX APPEAL IS FILED UNDER SEC.260-A OF THE INCOME TAX ACT 1961, PRAYING TO FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED ABOVE AND ALLOW THE APPEAL AND SET ASIDE THE ORDERS PASSED BY THE INCOME-TAX APPELLATE TRIBUNAL, BENGALURU IN ITA NO. 752/BANG/2019 DATED 18.04.2022 FOR ASSESSMENT YEAR 2006-2007 ANNEXURE-C AND CONFIRM THE ORDER OF THE APPELLATE COMMISSIONER CONFIRMING THE ORDER PASSED BY THE INCOME TAX OFFICER, WARD-5(2)(1), 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 ITA No. 94 of 2023 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 Sri.Narendra Kumar.J.Jain, 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 18.04.2022 passed by the Income Tax Appellate Tribunal, ‘A’ Bench, Bengaluru (for short ‘Appellate Authority’) in ITA.No.752/Bang/2019 for the assessment year 2006-07, raising 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 as Tribunal has held that additions made by assessing authority are not on basis of incriminating materials ignoring the findings of the assessing author which has been rightly up held by CIT(A)"? 2. "Whether on the facts and circumstances of the case and in law, the Tribunal is right in law in holding that land which is subject matter of sale is agricultural land as on date of sale inn view of cultivation of land and as such the same is exempt from capital gains in view of Section 2(14) of the Act read with section 45 & 48 of the Act ignoring that as on date of sale land sold were converted non agricultural land which cannot be considered as agricultural land and also mentioned as non agricultural property in municipal records"? case and in law, the Tribunal is right in law in holding that land which is subject matter of sale is agricultural land as on date of sale inn view of cultivation of land and as such the same is exempt from capital gains in view of Section 2(14) of the Act read with section 45 & 48 of the Act ignoring that as on date of sale land sold were converted non agricultural land which cannot be considered as agricultural land and also mentioned as non agricultural property in municipal records"? 3. "Whether on the facts and in the circumstances of the case, the Tribunal's order can be said as perverse in holding that lands in question are not non agricultural lands ignoring that conditions set out in section 2(14) are satisfied to hold that lands sold are non agricultural lands and assesse had not sought reversal of entries made in revenue records"? the case, the Tribunal's order can be said as perverse in holding that lands in question are not non agricultural lands ignoring that conditions set out in section 2(14) are satisfied to hold that lands sold are non agricultural lands and assesse had not sought reversal of entries made in revenue records"? 4. "Whether on the facts and in the circumstances of the case, the Tribunal's order can be said as the case, the Tribunal's order can be said as perverse in holding that lands in question are not non- agricultural lands ignoring materials on record and findings of Assessing Authority as well as of CIT(A)"? 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 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 in terms of Circular No.09/2024 dated 17.09.2024, 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