SRI BHASKAR N RAJU vs. THE DEPUTY COMMISSIONER OF INCOME TAX

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ITA/4/2019HC KarnatakaKAHC01031580201913 February 2023Bench: P.S.DINESH KUMAR,RAMACHANDRA D. HUDDAR6 pages
AI SummaryRemanded

What did the High Court hold?

The High Court of Karnataka, in a joint submission by the assessee and the revenue, decided to set aside the impugned order dated August 14, 2018, passed by the ITAT, Bengaluru. The Court ordered that the matters be remitted to the file of the CIT(A), Bengaluru. The CIT(A) is 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. The operative direction was to set aside the ITAT's order, remit the matter to the CIT(A), and await the Supreme Court's decision on the Section 153A issue before proceeding. No specific issue was left undecided, but the final adjudication was deferred.

What were the facts?

These are four Income Tax Appeals filed under Section 260-A of the Income Tax Act, 1961, by different assessees (Sri. P. Shyamaraju, Smt. Arathi B Raju, Sri. Bhaskar N. Raju, and Sri Umesh S Raju) against the common order dated August 14, 2018, passed by the Income Tax Appellate Tribunal (ITAT), Bengaluru. The appeals pertain to the Assessment Year 2007-2008. The ITAT's order had remitted the matters back to the Assessing Officer (AO) for fresh consideration. The appeals before the High Court were filed after the ITAT's order. The parties jointly submitted that the issue regarding passing orders under Section 153A of the Income Tax Act is pending before the Supreme Court, and they prayed for the appeals to be relegated to the CIT(A) for disposal after the Supreme Court's decision.

What were the issues?

1. Whether the High Court should entertain these appeals filed under Section 260-A of the Income Tax Act, 1961, given that the ITAT's order was one of remand and the substantive issue concerning Section 153A of the Act is pending before the Supreme Court. Assessee's contention: The assessee, through their advocate, jointly submitted that the ITAT's order remitted the matters to the AO, and the appeals are now pending before the CIT(A). They further stated that the issue regarding Section 153A of the Act is under consideration by the Supreme Court and has been heard and reserved. They prayed for the appeals to be relegated to the CIT(A) for disposal based on the outcome of the Supreme Court's judgment. Revenue's contention: The Revenue, through its Senior Standing Counsel, jointly submitted with the assessee that the ITAT's order remitted the matters to the AO, and the appeals are now pending before the CIT(A). They also acknowledged that the issue regarding Section 153A of the Act is pending before the Supreme Court and has been heard and reserved. They joined the assessee in praying for the appeals to be relegated to the CIT(A) for disposal based on the Supreme Court's decision.

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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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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