THE PR. COMMISSIONER OF INCOME-TAX ,CIT(a) vs. M/S ALLEGIS SERVICES INDIA PVT. LTD.,

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ITA/7/2020HC KarnatakaKAHC01047273201905 August 2024Bench: S.G.PANDIT,C.M. POONACHA4 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that the present appeal, filed by the Revenue, challenges the dismissal of the Cross Objection filed by the assessee by the ITAT. The Court noted that the substantial questions of law framed for this appeal were to be considered in ITA No.12/2020, which was filed by the Revenue challenging the dismissal of its own appeal by the ITAT. The Court further observed that ITA No.12/2020 had already been disposed of by a separate order on the same day. In view of this procedural development, the High Court concluded that the question of considering the present appeal did not arise. Therefore, the appeal was dismissed. The operative direction was the dismissal of the appeal.

What were the facts?

The Revenue (Principal Commissioner of Income-Tax and Deputy Commissioner of Income-Tax) filed an appeal before the High Court of Karnataka against an order of the Income-Tax Appellate Tribunal (ITAT). The ITAT's order, dated April 5, 2019, in C.O.No.129/Bang/2018 in ITA No.2199/Bang/2018, pertained to Assessment Year 2012-2013. The Revenue's appeal to the ITAT was against an order dated April 27, 2018, passed by the Commissioner of Income-Tax (Appeals)-1. The assessee, M/s Allegis Services India Pvt. Ltd., had filed a Cross Objection (CO No.129/Bang/2018) in the Revenue's appeal before the ITAT. The ITAT, by its order dated April 5, 2019, dismissed both the Revenue's appeal and the assessee's Cross Objection. The present appeal before the High Court is by the Revenue against the dismissal of the assessee's Cross Objection by the ITAT. The High Court had admitted this appeal and framed two substantial questions of law.

What were the issues?

1. Whether the High Court should consider the present appeal filed by the Revenue challenging the dismissal of the assessee's Cross Objection by the ITAT, when the Revenue's own appeal before the ITAT was also dismissed and a separate appeal (ITA No.12/2020) by the Revenue against the dismissal of its appeal has been disposed of by a separate order. Assessee's Contentions: The judgment does not record any specific contentions made by the assessee in this appeal. However, the context implies the assessee would argue that since their Cross Objection was dismissed on merits by the ITAT, and the Revenue's primary appeal was also dismissed, the present appeal by the Revenue against the dismissal of the Cross Objection is not maintainable or does not warrant consideration, especially given the disposal of the Revenue's main appeal. Revenue's Contentions: The judgment does not record specific contentions made by the Revenue for this appeal. However, the Revenue is challenging the ITAT's dismissal of the assessee's Cross Objection, implying they would argue that the ITAT erred in dismissing the Cross Objection.

Which sections of the Income-tax Act were involved?

Section 260-A

AI-generated summary — verify with the full judgment below

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NC: 2024:KHC:31098-DB ITA No. 7 of 2020

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 5TH DAY OF AUGUST, 2024 PRESENT THE HON'BLE MR JUSTICE S.G.PANDIT AND THE HON'BLE MR JUSTICE C.M. POONACHA INCOME TAX APPEAL NO. 7 OF 2020 BETWEEN:

1.

THE PR. COMMISSIONER OF INCOME-TAX ,CIT(a) 5TH FLOOR, BMTC BUILDING, 80 FEET ROAD, KORAMANGALA, BENGALURU-560095

2.

THE DEPUTY COMMISSIONER OF INCOME TAX CIRCLE-1(1)(1), 2ND FLOOR, BMTC BUILDING, 80 FEET ROAD, KORAMANGALA, BENGALURU-560095 …APPELLANTS (BY SRI. E.I. SANMATHI, ADVOCATE FOR SRI. SUSHAL TIWARI N., ADVOCATE)

AND:

M/S ALLEGIS SERVICES INDIA PVT. LTD., COMMERCE @ MANTRI, LEVEL-3 BANNERGHATTA ROAD BENGALURU-560076 PAN-AAFCA O825M …RESPONDENT (BY SRI. T SURYANARAYANA, SENIOR COUNSEL FOR SMT. TANMAYEE RAJKUMAR., ADVOCATE)

THIS ITA / INCOME TAX APPEAL IS FILED UNDER SEC.260-A OF INCOME TAX ACT 1961, PRAYING TO FORMULATE THE

Digitally signed by BHARATHI S Location: HIGH COURT OF KARNATAKA

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NC: 2024:KHC:31098-DB ITA No. 7 of 2020

SUBSTANTIAL QUESTIONS OF LAW STATED ABOVE, ALLOW THE APPEAL AND SET ASIDE THE ORDERS PASSED BY THE INCOME TAX APPELLATE TRIBUNAL, BENGALURU IN C.O.NO.129/BANG/2018 IN ITA NO.2199/BANG/2018 DATED 05/04/2019 FOR ASSESSMENT YEAR 2012-2013 ANNEXURE-D AND CONFIRM THE ORDER OF THE APPELLATE COMMISSIONER CONFIRMING THE ORDER PASSED BY THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE- 1(1)(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

ORAL JUDGMENT (PER: HON'BLE MR JUSTICE C.M. POONACHA)

The present appeal is filed by the revenue under Section 260-A of the Income Tax Act, 19611 challenging the order dated 5.4.2019 passed in C.O No.129/Bang/2018 in ITA No.2199/Bang/2018 by the Income-Tax Appellate Tribunal, Bengaluru2, for the Assessment Year 2012-2013.

2.

It is forthcoming that, challenging the order dated 27.4.2018 passed by the Commissioner of Income-Tax (Appeals)-1, the revenue filed ITA No.2199/Bang/2018 before the ITAT. The assessee preferred Cross Objection in

1 Hereinafter referred to as the ‘Act, 1961’ 2 Hereinafter referred to as ‘ITAT’

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NC: 2024:KHC:31098-DB ITA No. 7 of 2020

CO.No.129/Bang/2018 in the said appeal. The ITAT by its order dated 5.4.2019 dismissed the appeal filed by the revenue as well as the cross objection filed by the assessee. Being aggrieved by the dismissal of its appeal, the revenue has preferred ITA No.12/2020 and being aggrieved by the dismissal of cross objection, the revenue has preferred the present appeal.

3.

This Court, by order dated 8.10.2020 admitted the above appeal and framed two substantial questions of law. ITA No.12/2020 was admitted by this Court on 12.10.2020 and framed two substantial questions of law. That the substantial questions of law framed in both the appeals are the same.

4.

Having regard to the fact that the present appeal is filed by the revenue challenging the dismissal of the cross objection filed by the assessee by the ITAT, the question of considering the present appeal does not arise. The substantial questions of law framed by this Court, vide its order dated 8.10.2020, to be considered in ITA No.12/2020

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NC: 2024:KHC:31098-DB ITA No. 7 of 2020

and it is to be noted that ITA No.12/2020 is disposed of today by separate order.

5.

In view of the aforementioned, the above appeal is dismissed.

Sd/- (S.G.PANDIT) JUDGE

Sd/- (C.M. POONACHA) JUDGE

ND List No.: 1 Sl No.: 48

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