Ju Dbgment v. Od/-.Judge

IN THE HIGH COURT OF KARNATAKA, BANGALORE DATED THIS THE 28 DAY OF AUGUST, 2012| PRESENT THR HON'BLE MR. JUSTICE K.SREBDHAR RAO ANT) THR HON'BLE MR. JUSTICK B.MANOHAR 1.T.A. No. 818 OF 2007 BE TW BE 1.The Commissioner of Income Tax,Central Circle,Central Circle, C.R. Building,Queens Road,Bangalore. 2.The Assistant Commissioner of Income Tax,Central Circle-2(2),C.R. Building,Queens Road,Bangalore. Appellants (By Sri K.V. Aravind, Advocate) ANT) M/s. Kwality Bar and Restaurant,No.120, Residency Road,p['0]Cross,Bangalore-560025. Respondent, (By Sri A. Shankar & M. Lava, Advocates) This I.T.A. is filed U/s.200-A of the I.T. Act, 1961.arising out of Order dated 08.06.2007 passed in IT(SS)A|No.9//Bang/2005,forthe|BlockAssessment.Period01.04.1995 to 21.03.2002, praying that this Hon’ble Court|may be pleased to: (i) formulate the substantial questions oflaw stated therein and (11) allow the appeal and set aside theorderpassedby|theITAT,BangaloreinIT(SS)ANo.9/7/Bang/2005, dated 08.06.2007 confirming the order ofthe Appellate Commissioner and confirm the order passed bythe Asst. Commissioner of Income Tax, Central Circle-2(2),|Bangalore in the interest of justice and equity. This appeal is coming on for final hearing this day,|SREEDHAR RAO, J.,delivered the following: JU DBGMENT In respect of the block assessment, the Assessing|Officer levied the tax for the previous years at the rateapplicable for the year in which search took place. In respectof the amendment effected to Sec.113 of the I.T. Act, thequestion arose whether the amendment was retrospective orprospective. The Supreme Court has held that in the case ofCommissioner of Income Tax Vs. Suresh Guptatheamendment is by way of clarification and the law as it stoodeven before the amendment permitted to levy of tax at therate applicable for the year of search. The decision of theSupreme Court in Suresh Gupta’s case is referred to theLarger Bench in|Commissioner of Income Tax Vs. Vatika Township Pvt. Ltd.,which is pending decision. In view ofthe above facts, it is to be noted that the rate of taxapplicable for the block assessment should be dependantupon the decision of the Supreme Court in Vatika Townshipand other connected cases referred to the larger Bench. oOIn respect of monetary limit as prescribed underthe Circular No.3/11 whether it applies to pending casesshould also be the subject to the decision of the Supremecourt in Ranka and Ranka Case pending in Special LeavePetition. In the event the decision of the Supreme Court is in favour of the revenue, the appellant is permitted to make anapplication for revival of the appeal for disposal inaccordance with the decision of the Supreme Court.|Accordingly, for the present the appeal is disposed of. od/-.JUDGE od/-.JUDGE