PR COMMISSIONER OF INCOME TAX vs M/S M N DASTUR COMPANY PVT LTD

IN THE HIGH COURT OF KARNATAKA AT BENGALURU

DATED THIS THE 20TH DAY OF DECEMBER, 2021

PRESENT

THE HON’BLE MRS.JUSTICE S.SUJATHA

AND

THE HON’BLE MR. JUSTICE S.VISHWAJITH SHETTY

I.T.A.No.243/2021

BETWEEN :

1 . PR. COMMISSIONER OF INCOME TAX BMTC COMPLEX, KORAMANGALA, BANGALORE.

2 . THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE 4(1)(2) BMTC COMPLEX, BANGALORE ...APPELLANTS

(BY SRI E.I.SANMATHI, ADV.)

AND :

M/s M.N.DASTUR COMPANY PVT. LTD., 7TH FLOOR, RAHEJA TOWERS, 26/27, M.G.ROAD, BANGALORE-560001, PAN: AABCM1236M

…RESPONDENT

(BY SRI K.R.PRADEEP, ADV.)

THIS INCOME TAX APPEAL IS FILED UNDER SECTION 260-A OF INCOME TAX ACT 1961, ARISING OUT OF ORDER DATED 24.06.2020 PASSED IN ITA NO.2054/BANG/2019, FOR THE ASSESSMENT YEAR 2013-2014 PRAYING TO (A) DECIDE THE FOREGOING QUESTION OF LAW AND/OR SUCH OTHER QUESTIONS OF LAW AS MAY BE FORMULATED BY THE HON'BLE COURT AS DEEMED FIT. (B) SET ASIDE THE COMMON APPELLATE ORDER DATED 24.06.2020 PASSED BY THE

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INCOME TAX APPELLATE TRIBUNAL, 'B' BENCH, BENGALURU, IN APPEAL PROCEEDINGS ITA NO.2054/BANG/2019 FOR ASSESSMENT YEAR 2013-2014 (ANNEXURE-A) AS SOUGHT FOR IN THIS APPEAL.

THIS APPEAL COMING ON FOR ADMISSION, THIS DAY, S. SUJATHA, J., DELIVERED THE FOLLOWING:

J U D G M E N T

This appeal is filed by the Revenue under Section 260-A of the Income Tax Act, 1961 (‘Act’ for short) challenging the order dated 24.06.2020 passed by the Income Tax Appellate Tribunal, “B” Bench, Bangalore (‘Tribunal’ for short) in ITA No.2054/Bang/2019 relating to the assessment year 2013-14.

Learned counsel for the assessee has raised a preliminary objection regarding maintainability of the appeal.

Learned counsel for the Revenue placing reliance on the Circular No.3/2018 would submit that in view of the Revenue Audit Objection accepted by the department, the appeal is maintainable.

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We have heard the learned counsel for the parties on the preliminary objection raised and perused the material on record.

ITA No.2054/Bang/2019 was filed by the Revenue before the Tribunal challenging the order dated 30.07.2019 of CIT (Appeals – 4), Bengaluru. The order dated 30.07.2019 passed by the CIT (Appeals – 4) Bengaluru under Section 154 of the Act would reveal that originally an appeal was filed by the assessee challenging the order dated 19.09.2017 passed under Section 154 of the Act by the Assessing Officer which was allowed on 02.04.2019. Again the Miscellaneous Petition was filed on 28.06.2019 by the revenue seeking for rectification of the said order dated 02.04.2019 which was the subject matter of the order dated 30.07.2019. The said Miscellaneous Petition came to be dismissed for the decision already reflected in the order

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dated 02.04.2019. Thus, the order dated 02.04.2019 has reached finality.

The Revenue for the reasons best known has challenged only the order dated 30.07.2019 passed by the CIT (Appeals - 4) before the Tribunal which has been dismissed. In view of the order dated 19.09.2017 passed by the Assessing Officer challenged in appeal being allowed by the CIT[A] vide order dated 02.04.2019 and the same having not been further challenged before the Tribunal, having attained finality, the arguments now advanced by the Revenue that the clause 10(c) of the Circular No.3/2018 dated 11.07.2018 issued by the CBDT would exclude the Revenue Audit Objection’s case cannot be accepted.

For the reasons that the tax effect being less than the monetary limits prescribed in the said Circular No.3/2018 and for the reasons aforesaid, the appeal is not maintainable.

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In the result, the appeal stands dismissed.

Sd/- JUDGE

PMR

PR COMMISSIONER OF INCOME TAX vs. M/S M N DASTUR COMPANY PVT LTD