THE COMMISSIONER OF INCOME TAX vs. M/S SHYAM SUNDER BHATHIJA

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ITA/896/2007HC KarnatakaKAHC01058759200705 November 2012Bench: B.V.PINTO,K.SREEDHAR RAO2 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that the appeal filed by the Revenue was not maintainable. This decision was based on Circular No. 2/2005 dated 24.10.2005. The reasoning provided is that the circular renders the appeal non-maintainable. Consequently, the High Court dismissed the appeal. The operative direction is the dismissal of the appeal. No issues were expressly left undecided; the primary issue of maintainability was decided, leading to the dismissal.

What were the facts?

The Commissioner of Income Tax and the Assistant Commissioner of Income Tax (Appellants) filed an appeal under Section 260-A of the Income Tax Act, 1961, before the High Court of Karnataka. The appeal arose from an order dated July 18, 2007, passed by the Income Tax Appellate Tribunal (ITAT), Bangalore, in ITA No. 849/Bang/2006. The ITAT's order had confirmed the order of the Appellate Commissioner, which in turn had confirmed the order of the Assistant Commissioner of Income Tax, Circle-5(1), Bangalore. The assessment year in question was 2003-2004. The appellants sought to set aside the ITAT's order and confirm the order of the Assistant Commissioner. The tax liability in dispute was Rs. 82,49,709/-.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable in light of Circular No. 2/2005 dated 24.10.2005? (Question of law) Assessee's Contention: The judgment does not record any specific contentions made by the respondent assessee, M/s. Shyam Sunder Bhathija. Revenue's Contention: The Revenue contended that the appeal should be allowed and the order passed by the ITAT be set aside. However, the judgment explicitly states that in view of Circular No. 2/2005 dated 24.10.2005, the appeal is not maintainable. This implies that the Revenue's argument for maintainability was implicitly rejected based on the circular.

Which sections of the Income-tax Act were involved?

Section 260-A

AI-generated summary — verify with the full judgment below

1 IN THE HIGH COURT OF KARNATAKA AT BANGALORE DATED THIS THE 05TH DAY OF NOVEMBER 2012 PRESENT THE HON'BLE MR. JUSTICE K.SREEDHAR RAO AND THE HON'BLE MR. JUSTICE B.V.PINTO ITA No.896/2007 BETWEEN: 1 THE COMMISSIONER OF INCOME TAX, C.R. BUILDING, QUEENS ROAD, BANGALORE. 2 THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE- 5(1), C.R. BUILDING, QUEENS ROAD, BANGALORE. APPELLANTS (BY SRI K.V. ARAVIND, ADVOCATE) AND: M/S. SHYAM SUNDER BHATHIJA, SOUKAT BUILDING, SJP ROAD, BANGLAORE. RESPONDENT (BY SRI A. SHANKAR, ADVOCATE)

2 This ITA is filed u/S.260-A of I.T. Act, 1961 arising out of Order dated 18-07-2007 passed in ITA No.849/BANG/2006 for the Assessment Year 2003-2004, praying that this Hon'ble Court may be pleased to: (i) formulate the substantial questions of law stated therein and (ii) allow the appeal and set aside the Order passed by the ITAT, Bangalore in ITA 896/Bang/2006 dated 18-07-2007 confirming the order of the Appellate Commissioner & confirm the order passed by the Asst. Commissioner of Income Tax, Circle-5(1), Bangalore, in the interest of justice and equity. This appeal is coming on for final hearing this day, SREEDHAR RAO, J., delivered the following:

JUDGMENT

The tax liability Rs.82,49,709/-. In view of the circular No.2/2005 dated 24.10.2005 the appeal is not maintainable. Accordingly, the appeal is dismissed.

Sd/- JUDGE

Sd/- JUDGE psg*

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