THE COMMISSIONER OF INCOME TAX vs. CMR JNANADHARA TRUST

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ITA/249/2009HC KarnatakaKAHC01036471200901 July 2015Bench: S.SUJATHA,VINEET SARAN2 pages
AI SummaryRemanded

What did the High Court hold?

The High Court of Karnataka disposed of the appeals based on the agreement of the parties. The Court noted that the first substantial question of law, concerning the reopening of proceedings under Section 147 of the Income Tax Act, was covered by the Court's decision in ITA 504/2013 (N Govindaraju Vs Income Tax Officer) dated July 1, 2015. The second question, relating to the merits of the case, was covered by a Division Bench decision of the same Court in the case of the same assessee, Commissioner of Income Tax Vs CMR Jnanadhara Trust, dated January 20, 2015. Consequently, the appeals were disposed of in terms of these two prior judgments. No specific findings on the individual issues were recorded in this judgment, as it was based on precedent and agreement.

What were the facts?

The appeals were filed by the Commissioner of Income Tax (Exemptions) and the Deputy Director of Income Tax (Exemptions) against the order of the Income Tax Appellate Tribunal (ITAT), Bangalore. The ITAT had confirmed an order of the Appellate Commissioner, which in turn had presumably set aside or modified an order passed by the Deputy Director of Income Tax. The assessee is CMR Jnanadhara Trust. The appeals challenge the ITAT's decision concerning the reopening of assessment proceedings under Section 147 of the Income Tax Act and the merits of the case. The assessment years are not explicitly stated in the provided text.

What were the issues?

1. Whether the reopening of proceedings under Section 147 of the Income Tax Act, 1961, was valid? (Question of law) 2. Whether the assessment on merits was correct? (Question of mixed law and fact) Assessee's Contentions: The judgment does not record any specific contentions made by the assessee (CMR Jnanadhara Trust) in these appeals before the High Court. The judgment states that the parties agreed on how the issues should be decided. Revenue's Contentions: The revenue (Commissioner of Income Tax and Deputy Director of Income Tax) argued that the ITAT's order confirming the Appellate Commissioner's order was incorrect. They sought to set aside the ITAT's order and confirm the order passed by the Deputy Director of Income Tax. The revenue relied on the decision in ITA 504/2013 (N Govindaraju Vs Income Tax Officer) for the issue of reopening and on the decision in ITA 73/2009 c/w 74/2009 (Commissioner of Income Tax Vs CMR Jnanadhara Trust) for the merits of the case.

Which sections of the Income-tax Act were involved?

Section 147

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KARNATAKA AT BENGALURU

Dated this the 1st day of July, 2015

Present

THE HON’BLE MR JUSTICE VINEET SARAN

THE HON’BLE MRS JUSTICE S SUJATHA

Income Tax Appeals 249 & 250 / 2009 Between 1 Commissioner of Income Tax

Exemptions, C R Building

Queens Road, Bangalore

2 Deputy Director of Income Tax (Exmp)

Circle – 17(1), C R Building

Queens Road, Bangalore

Appellants

(By Sri K V Aravind, Adv.)

And

CMR Jnanadhara Trust CA # 2, 3rd C Cross 6th A Main Road, 2nd Block HRBR Layout, Bangalore 43

Respondent

(By Sri V K Gurunathan for Sri S Parthasarathi, Adv.)

Appeals are filed under S.260 A of the Income Tax Act praying to set aside the order passed by the ITAT, Bangalore in ITA 642/Bang/2008 & 643/Bang/2008 on 24.12.2008 confirming the order of the Appellate Commissioner and confirm the order passed by Dy. Director of Income Tax, Circle 17(1), Bangalore.

Appeals having been reserved on 20.4.2015, coming on for pronouncement of Orders this day, Vineet Saran J, delivered the following:

JUDGMENT

Learned counsel for the parties agree that the first substantial question of law relating to the reopening of the proceedings under Section 147 of the Income Tax Act is covered by the decision in ITA 504/2013 (N Govindaraju Vs Income Tax Officer ) dated 1st July, 2015 today and the second question, which is on merits, is covered by the Division Bench decision of this Court in the case of the same assessee, dated 20th January, 2015 in ITA 73/2009 c/w 74/2009 (Commissioner of Income Tax Vs CMR Jnanadhara Trust).

As such, these appeals are disposed of in terms of the aforesaid judgments.

Sd/- Judge

Sd/-

Judge An

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