THE PR. COMMISSIONER OF INCOME TAX CIT (A) vs. M/S. NAVODAYA GRAMA VIKAS CHARITABLE TRUST

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ITA/146/2021HC KarnatakaKAHC01013252202114 February 2023Bench: P.S.DINESH KUMAR,RAMACHANDRA D. HUDDAR4 pages
AI SummaryDismissed

What did the High Court hold?

The High Court dismissed the Revenue's appeal, holding that the ITAT's order was not perverse. The court found that the issue was covered by a previous decision in favor of the assessee.

What were the facts?

The Revenue appealed against an ITAT order that annulled a reassessment order. The reassessment was initiated based on information from another assessee's assessment suggesting diversion of funds through an intermediary to the trustee.

What were the issues?

Whether the reassessment order was rightly annulled by the ITAT on the grounds of lack of specific allegations of non-disclosure by the assessee, and whether the ITAT's order was perverse.

Which sections of the Income-tax Act were involved?

Section 147

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, BENGALURU IN ITA NO.552/BANG/2018 DATED 16.10.2020 FOR

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ITA No. 146 of 2021

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 14TH 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.146 OF 2021 BETWEEN: 1. THE PR. COMMISSIONER OF INCOME-TAX CIT (A) CENTRAL CIRCLE, C.R.BUILDING QUEEN’S ROAD, BENGALURU-560 001

2.

THE ASST. COMMISSIONER OF INCOME-TAX EXEMPTIONS, CIRCLE-1 (PRESENT ADDRESS) DCIT, CENTRAL CIRCLE-1 C.R. BUILDING, ATTAVARA MANGALURU-575 001 …APPELLANTS (BY SHRI. M. DILIP, STANDING COUNSEL FOR SHRI. K.V. ARAVIND, SENIOR STANDING COUNSEL)

AND: M/S. NAVODAYA GRAMA VIKAS CHARITABLE TRUST 14-7-1005, SC DCC BANK LTD., HEAD OFFICE BUILDING KODIALBAIL MANGALURU-575 003 PAN-AAATN7594E …RESPONDENT (BY SHRI. A. SHANKAR, SENIOR ADVOCATE FOR SHRI. A. ANNAMALAI, ADVOCATE)

THIS ITA IS FILED UNDER SEC.260-A OF INCOME TAX ACT 1961, ARISING OUT OF ORDER DATED 16.10.2020 PASSED IN ITA NO.552/BANG/2018, FOR THE ASSESSMENT YEAR 2009-2010

Digitally signed by ANUSHA V Location: HIGH COURT OF KARNATAKA

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ITA No. 146 of 2021

PRAYING TO FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED THEREIN AND ALLOW THE APPEAL AND SET ASIDE THE ORDERS PASSED BY THE INCOME TAX APPELLATE TRIBUNAL, BENGALURU IN ITA NO.552/BANG/2018 DATED 16.10.2020 FOR ASSESSMENT YEAR 2009-2010 ANNEXURE-C AND CONFIRM THE ORDER OF THE APPELLATE COMMISSIONER CONFIRMING THE ORDER PASSED BY THE ASST. COMMISSIONER OF INCOME TAX, EXEMPTIONS, CIRCLE-1, MANGALURU AND ETC.

THIS ITA, COMING ON FOR ADMISSION, THIS DAY, P.S.DINESH KUMAR, J., DELIVERED THE FOLLOWING:

JUDGMENT

This appeal by the Revenue directed against order dated October 16, 2020 in ITA No.552/Bang/2018 for the Assessment Year 2009-2010 passed by the ITAT1 has been admitted to consider the following questions of law;

“1. Whether on the facts and in the circumstances of the case, the Tribunal is right in law in annulling the re-assessment order passed in case of assessee by on the ground the assessing authority has not made any allegation that there was non-disclosure of true and correct facts by the assessee at the time of original assessment when assessing authority has taken up reassessment proceedings as

1 Income Tax Appellate Tribunal

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ITA No. 146 of 2021

assessee had failed to disclose material facts and during the course of assessment proceedings in case of Sri. Pushparaj Jain for A.Y. 2012-13, it was noticed there is diversion of funds through intermediary to the trustee?

2.

Whether on the facts and in the circumstances of the case, the Tribunal’s order can be said as perverse in nature as the Tribunal has annulled the re-assessment order when facts disclose that there was failure on part of assessee to disclose the material facts and all the conditions for invoking section 147 were fully satisfied in case of assessee?”

2.

At the outset, Shri A.Shankar, learned Senior Advocate for the assessee, submits that the issue involved in this appeal is covered by the decision of this court in The Commissioner of Income Tax and Another Vs. Hewlett Packard Digital Global Soft Ltd.2, wherein this court has dismissed the appeals filed by the Revenue holding questions of law in favour of the assessee. Shri M.Dilip, learned standing counsel for the Revenue does not dispute the same.

2 ITA No.406/2007 c/w 407/2007 (DD. 19.09.2011)

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ITA No. 146 of 2021

3.

Hence, the following;

ORDER

(i) Appeal is dismissed; and (ii) Questions of law are answered in favour of the assessee and against the Revenue.

No costs.

Sd/- JUDGE

Sd/- JUDGE

AV List No.: 1 Sl No.: 73

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