SMT. ARATHI B RAJU vs. THE DEPUTY COMMISSIONER OF INCOME TAX

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ITA/3/2019HC KarnatakaKAHC01031579201913 February 2023Bench: P.S.DINESH KUMAR,RAMACHANDRA D. HUDDAR6 pages
AI SummaryRemanded

What did the High Court hold?

The High Court, upon joint submission by the learned advocates for the assessee and the Revenue, set aside the impugned order dated August 14, 2018, passed by the ITAT in ITAs No. 1147/Bang/2012, 1148/Bang/2012, 1149/Bang/2012, 1150/Bang/2012, and 1170/Bang/2012. The Court ordered that the matters be remitted to the file of the CIT(A), Bengaluru. The CIT(A) was directed to dispose of the appeals after the appeals pending before the Apex Court concerning Section 153A of the Act are disposed of. The Court explicitly stated that all contentions of both parties are kept open. No costs were awarded. The operative direction was to set aside the ITAT's order and remit the matter to the CIT(A) for a decision post the Supreme Court's ruling on Section 153A.

What were the facts?

These four Income Tax Appeals (ITAs) were filed under Section 260-A of the Income Tax Act, 1961, by individual assessees (Sri. P. Shyamaraju, Smt. Arathi B Raju, Sri. Bhaskar N. Raju, and Sri Umesh S Raju) against a common order dated August 14, 2018, passed by the Income Tax Appellate Tribunal (ITAT), Bengaluru. The assessment year in question is 2007-2008. The appeals before the High Court arise from orders passed by the ITAT in departmental appeals and assessee appeals. The parties jointly submitted that the ITAT had remitted the matters to the Assessing Officer (AO) for fresh consideration, and these matters were then pending before the Commissioner of Income Tax (Appeals) (CIT(A)). The parties also noted that an issue concerning orders passed under Section 153A of the Income Tax Act was pending before the Supreme Court.

What were the issues?

1. Whether the High Court should entertain the appeals when the ITAT's order was a remand order and the matters were pending before the CIT(A)? 2. Whether the appeals should be relegated to the CIT(A) for disposal after the Supreme Court's decision on the issue of Section 153A proceedings? Assessee's contentions: The assessee's advocate, along with the Revenue's counsel, jointly submitted that the ITAT had remitted the matters to the AO for fresh consideration, and these were now pending before the CIT(A). They further submitted that the issue regarding orders passed under Section 153A of the Income Tax Act was under consideration before the Hon'ble Supreme Court, which had heard the matter and reserved its judgment. They prayed that the appeals be relegated to the CIT(A) to be disposed of based on the outcome of the Supreme Court's judgment. Revenue's contentions: The Revenue's Senior Standing Counsel, Shri K.V. Aravind, jointly made submissions with the assessee's counsel, agreeing to the proposed course of action.

Which sections of the Income-tax Act were involved?

Section 260-A,Section 153A

AI-generated summary — verify with the full judgment below

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ITA No. 1/2019 C/W ITA No. 3/2019 ITA No. 4/2019 ITA No. 6/2019

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 13TH DAY OF FEBRUARY, 2023 PRESENT THE HON'BLE MR. JUSTICE P.S.DINESH KUMAR AND THE HON'BLE MR. JUSTICE RAMACHANDRA D. HUDDAR INCOME TAX APPEAL NO. 1 OF 2019 C/W INCOME TAX APPEAL NO. 3 OF 2019 INCOME TAX APPEAL NO. 4 OF 2019 INCOME TAX APPEAL NO. 6 OF 2019

IN ITA NO. 1 OF 2019

BETWEEN:

SRI. P. SHYAMARAJU NO.343, IV MAIN UPPER PALACE ORCHARDS SADASHIVANAGAR BENGALURU - 560 080 PAN:AIOPP 2600 D …APPELLANT

(BY SHRI. V. CHANDRASHEKAR, ADVOCATE)

AND:

THE ASSISTANT COMMISSIONER OF INCOME TAX CENTRAL CIRCLE-2 (2) C R BUILDING, QUEENS ROAD BENGALURU - 560 001 …RESPONDENT

(BY SHRI. K.V. ARAVIND, SENIOR STANDING COUNSEL)

Digitally signed by YASHODHA N Location: HIGH COURT OF KARNATAKA

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ITA No. 1/2019 C/W ITA No. 3/2019 ITA No. 4/2019 ITA No. 6/2019

THIS ITA IS FILED UNDER SEC-260-A OF INCOME TAX ACT, 1961, ARISING OUT OF ORDER DATED: 14/08/2018 PASSED IN ITA NOs. 1147/BANG/2012 AND ITA NO. 1170/BANG/2012 FOR THE ASSESSMENT YEAR 2007-2008 PRAYING TO FORMULATE THE SUBSTANTIAL QUESTION OF LAW AS STATED THEREIN AND ANSWER THE SAME IN FAVOUR OF THE APPELLANT AND TO ALLOW THE APPEAL, SET ASIDE THE FINDINGS TO THE EXTENT THEY ARE AGAINST THE APPELLANT IN THE COMMON ORDER PASSED BY THE INCOME TAX APPELLATE TRIBUNAL, BENGALURU ‘C’ BENCH, BENGALURU IN ITA NO. 1147/BANG/2012 (DEPARTMENT APPEAL) AND ITA NO. 1170/BANG/2012 (ASSESSEE APPEAL) PASSED ON 14/08/2018 AND ETC.

IN ITA NO. 3 OF 2019

BETWEEN:

SMT. ARATHI B RAJU NO.32, 1ST A CROSS RMV EXTENSION BENGALURU – 560 080 PAN:ADLPR 7952 G. …APPELLANT

(BY SHRI. V. CHANDRASHEKAR, ADVOCATE)

AND:

THE DEPUTY COMMISSIONER OF INCOME TAX CENTRAL CIRCLE-2(3) C R BUILDING, QUEENS ROAD BENGALURU - 560 001 …RESPONDENT

(BY SHRI. K.V. ARAVIND, SENIOR STANDING COUNSEL)

THIS ITA IS FILED UNDER SEC-260-A OF INCOME TAX ACT, 1961, ARISING OUT OF ORDER DATED: 14/08/2018 PASSED IN ITA NO. 1149/BANG/2012 FOR THE ASSESSMENT YEAR 2007-2008 PRAYING TO FORMULATE THE SUBSTANTIAL QUESTION OF LAW AS STATED THEREIN AND ANSWER THE SAME IN FAVOUR OF THE APPELLANT AND TO ALLOW THE APPEAL, SET ASIDE THE FINDINGS TO THE EXTENT THEY ARE AGAINST THE APPELLANT IN THE COMMON ORDER PASSED BY THE INCOME TAX APPELLATE TRIBUNAL, BENGALURU ‘C’ BENCH, BENGALURU IN ITA NO. 1149/BANG/2012 (DEPARTMENT APPEAL) PASSED ON 14/08/2018 FOR THE ASSESSMENT YEAR 2007-2008, VIDE ANNEXURE-A AND ETC.

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ITA No. 1/2019 C/W ITA No. 3/2019 ITA No. 4/2019 ITA No. 6/2019

IN ITA NO. 4 OF 2019

BETWEEN:

SRI. BHASKAR N. RAJU NO.32, 1ST A CROSS RMV EXTENSION BENGALURU - 560 080 PAN:ABJPR 0744 C …APPELLANT

(BY SHRI. V. CHANDRASHEKAR, ADVOCATE)

AND:

THE DEPUTY COMMISSIONER OF INCOME TAX CENTRAL CIRCLE-2(3) C R BUILDING, QUEENS ROAD BENGALURU - 560 001 …RESPONDENT

(BY SHRI. K.V. ARAVIND, SENIOR STANDING COUNSEL)

THIS ITA IS FILED UNDER SEC-260-A OF INCOME TAX ACT, 1961, ARISING OUT OF THE ORDER DATED: 14/08/2018 PASSED IN ITA NO. 1150/BANG/2012 FOR THE ASSESSMENT YEAR 2007- 2008, PRAYING TO FORMULATE THE SUBSTANTIAL QUESTION OF LAW AS STATED THEREIN AND ANSWER THE SAME IN FAVOUR OF THE APPELLANT AND TO ALLOW THE APPEAL, SET ASIDE THE FINDINGS TO THE EXTENT THEY ARE AGAINST THE APPELLANT IN THE COMMON ORDER PASSED BY THE INCOME TAX APPELLATE TRIBUNAL, BENGALURU ‘C’ BENCH, BENGALURU IN ITA NO. 1150/BANG/2012 (DEPARTMENT APPEAL) PASSED ON 14/08/2018 FOR THE ASSESSMENT YEAR 2007-2008, VIDE ANNEXURE-A AND ETC.

IN ITA NO. 6 OF 2019

BETWEEN:

SRI UMESH S RAJU NO.343, IV MAIN UPPER PALACE ORCHARDS SADASHIVANAGAR BENGALURU 560080 PAN:ARMPS 9147 H …APPELLANT

(BY SHRI. V. CHANDRASHEKAR, ADVOCATE)

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ITA No. 1/2019 C/W ITA No. 3/2019 ITA No. 4/2019 ITA No. 6/2019

AND:

THE ASSISTANT COMMISSIONER OF INCOME TAX CENTRAL CIRCLE-2(3) C R BUILDING, QUEENS ROAD BENGALURU - 560 001 …RESPONDENT

(BY SHRI. K.V. ARAVIND, SENIOR STANDING COUNSEL)

THIS ITA IS FILED UNDER SEC-260-A OF INCOME TAX ACT, 1961, ARISING OUT OF THE ORDER DATED: 14/08/2018 PASSED IN ITA NO. 1148/BANG/2012 FOR THE ASSESSMENT YEAR 2007- 2008, PRAYING TO FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW AS STATED THEREIN AND ANSWER THE SAME IN FAVOUR OF THE APPELLANT AND TO ALLOW THE APPEAL, SET ASIDE THE FINDINGS TO THE EXTENT THEY ARE AGAINST THE APPELLANT IN THE COMMON ORDER PASSED BY THE INCOME TAX APPELLATE TRIBUNAL, BENGALURU ‘C’ BENCH, BENGALURU IN ITA NO. 1148/BANG/2012 (DEPARTMENT APPEAL) PASSED ON 14/08/2018 FOR THE ASSESSMENT YEAR 2007-2008, VIDE ANNEXURE-A AND ETC.

THESE ITAs, COMING ON FOR FINAL HEARING, THIS DAY, P.S.DINESH KUMAR, J., DELIVERED THE FOLLOWING:

JUDGMENT

Shri V.Chandrashekar, learned advocate for the assessee and Shri K.V.Aravind, learned Senior Standing Counsel for the Revenue jointly submit that by impugned order, the ITAT1, Bengaluru, has remitted

1 Income Tax Appellate Tribunal

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ITA No. 1/2019 C/W ITA No. 3/2019 ITA No. 4/2019 ITA No. 6/2019

these matters to the AO2 for fresh consideration and now these matters are pending before the CIT(A)3. The issue with regard to passing the order under Section 153(A) of Income Tax Act, 19614, is under consideration before the Hon’ble Supreme Court and the matter has been heard and reserved. They pray that these appeals may be relegated to the CIT(A), who shall dispose of the appeals based on the final outcome of the judgment of the Apex Court. Their submission is placed on record.

2.

Hence, the following; ORDER (i) Order dated 14.08.2018 in ITAs No.1147/Bang/2012, 1148/Bang/2012, 1149/Bang/2012, 1150/Bang/2012 and 1170/Bang/2012 passed by the ITAT, Bengaluru, is set-aside; (ii) The matter is remitted to the file of CIT(A), Bengaluru. He shall dispose of

2 Assessing Officer 3 Commissioner of Income Tax (Appeals) 4 ‘The Act’ for short

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the appeals after the appeals pending before the Apex Court with regard to Section 153(A) of the Act are disposed of; and (iii) Appeals disposed of.

3.

All contentions of both the parties are kept open.

No costs.

Sd/- JUDGE

Sd/- JUDGE

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