THE PR.COMMISSIONER OF INCOME TAX vs. K G KRISHNA

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ITA/594/2022HC KarnatakaKAHC01056718202230 September 2024Bench: S.G.PANDIT,C.M. POONACHA4 pages
AI SummaryDismissed

What did the High Court hold?

The High Court disposed of the appeal as not maintainable due to the tax effect being less than Rs. 2 Crores, as per CBDT Circular No. 09/2024. Liberty was granted to revive the appeal if exceptions applied.

What were the facts?

The Revenue filed an appeal against an ITAT order that deleted additions made by the assessing authority. The appeal was filed under Section 260-A of the Income Tax Act, 1961.

What were the issues?

Whether the ITAT was right in deleting additions made by the assessing authority, and if the lapse of time for issuing a notice under Section 143(2) affects assessment proceedings.

Which sections of the Income-tax Act were involved?

Section 260-A,Section 132,Section 143(2),Section 153A

AI-generated summary — verify with the full judgment below

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NC: 2024:KHC:41272-DB ITA No. 594 of 2022

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 30TH DAY OF SEPTEMBER, 2024 PRESENT THE HON'BLE MR JUSTICE S.G.PANDIT AND THE HON'BLE MR JUSTICE C.M. POONACHA INCOME TAX APPEAL NO. 594 OF 2022 BETWEEN:

1.

THE PR.COMMISSIONER OF INCOME TAX CENTRAL CIRCLE C.R. BUILDING QUEENS ROAD, BENGALURU 560 001

2.

THE DEPUTY COMMISSIONER OF INCOME TAX CIRCLE-1(4), PRESENT ADDRESS DCIT CENTRAL CIRCLE-2(4), 3RD FLOOR, C.R. BUILDING, QUEENS ROAD, BENGALURU 560 001 …APPELLANTS (BY SRI DILIP M, ADVOCATE A/W SRI. RAVI RAJ Y V.,ADVOCATE)

AND:

K G KRISHNA NO. 1680/55, JAYAKRISHNA NILAYA 5TH A CROSS, 10TH MAIN ROAD, 2ND BLOCK, BANASHANKARI 1ST STAGE BENGALURU 560 060 PAN APGPK 8490K …RESPONDENT (RESPONDENT SERVED)

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:41272-DB ITA No. 594 of 2022

SUBSTANTIAL QUESTIONS OF LAW STATED ABOVE, ALLOW THE APPEAL AND SET ASIDE THE ORDERS PASSED BY THE INCOME-TAX APPELLATE TRIBUNAL, BENGALURU IN ITA NO. 310/BANG/2020 DATED 24.06.2022 FOR ASSESSMENT YEAR 2010-2012 ANNEXURE C AND CONFIRM THE ORDER OF THE APPELLATE COMMISSIONER CONFIRMING THE ORDER PASSED BY THE DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-1(4), BENGALURU AND ETC.

THIS APPEAL, COMING ON FOR ADMISSION, 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 S.G.PANDIT)

Heard the learned counsel Sri. Dilip. M., along with Sri. Raviraj. D., for appellants/Revenue.

2.

The Revenue is in appeal under Section 260-A of the Income Tax Act, 1961 (for short, ‘the Act’) questioning the correctness and legality of order dated 24.06.2022 passed by the Income Tax Appellate Tribunal, ‘C’ Bench, Bengaluru (for short, ‘Appellate Authority’) in ITA.No.310/Bang/2020 for the assessment year 2010-11, raising the following substantial questions of law: “1. Whether on the facts and in the circumstances of the case and law, the Tribunal is right in law in deleting the

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NC: 2024:KHC:41272-DB ITA No. 594 of 2022

additions made by assessing authority by holding that there are no incriminating materials on which additions are made ignoring that the incriminating materials were found against assessee in search conducted in case of assessee in pursuance to the provisions of Section 132 of the Act? 2. Whether, on the facts and in the circumstances of the case and law, the Tribunal’s order can be said as perverse in holding that additions made by assessing authority cannot be sustained in law ignoring mandate of sections 153A and 132 Act? 3. Whether on the facts and in the circumstances of the case, the Tribunal is right in law deleting additions ignoring findings of the assessing authority? 4. Whether on the facts and in the circumstances of the case, the lapse of time for issuance of notice under Section 143(2) of the Act be considered as conclusion of assessment proceedings under section 143(2) of the Act when same is not specifically stipulated under the provisions of the Act?”

3.

It is noticed that the tax effect in this appeal is less than Rs.2 Crores and therefore, the appeal would not

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NC: 2024:KHC:41272-DB ITA No. 594 of 2022

be maintainable at the instance of the revenue in view of the Circular No.09/2024 dated 17.09.2024 issued by the Central Board of Direct Taxes. It is also submitted that the aforesaid Circular binds the revenue.

4.

On the other hand, learned counsel for the revenue submits that he be granted liberty to revive the appeal in case the matter falls within the exceptions under the aforesaid Circular dated 17.09.2024 and Circular No.5/2024 dated 15.03.2024.

5.

In view of the aforesaid submissions, the appeal is disposed of with liberty as prayed for by the learned counsel for the revenue. However, the question of law is kept open to be adjudicated in an appropriate proceeding.

Sd/- (S.G.PANDIT) JUDGE

Sd/- (C.M. POONACHA) JUDGE

BS - List No.: 4 Sl No.: 0

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