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NC: 2024:KHC:41873-DB ITA No. 47 of 2023
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. 47 OF 2023 BETWEEN:
THE PR.COMMISSIONER OF INCOME TAX 5TH FLOOR, BMTC BUILDING 80 FEET ROAD, KORMANGALA BENGALURU 560095
THE DEPUTY COMMISSIONER OF INCOME TAX CIRCLE-6(1)(1) 2ND FLOOR, BMTC BUILDING 80 FEET ROAD, KORAMANGALA BENGALURU 560095 …APPELLANTS (BY SRI. DILIP M .,ADVOCATE A/W SRI. RAVIRAJ Y V, ADVOCATE)
AND:
M/S SIGMA ALDRICH CHEMICALS PVT LTD NO 12, BOMMASANDRA-JAGANI LINK ROAD BOMMASANDRA INDUSTRIAL AREA BENGALURU 560100 PAN AAHCS 1882L …RESPONDENT (BY SRI. ASHOK A KULKARNI.,ADVOCATE)
THIS ITA INCOME TAX APPEAL IS FILED UNDER SEC.260-A OF INCOME TAX ACT 1961, PRAYING TO FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED THEREIN, ALLOW THE APPEAL AND SET ASIDE THE ORDERS PASSED BY THE INCOME TAX APPELLATE TRIBUNAL, BENGALURU IN IT TP A NO.418/BANG/2015 DATED 11.07.2022 FOR ASSESSMENT YEAR 2010- 2011 ANNEXURE- D AND CONFIRM THE ORDER OF THE DPR CONFIRMING THE ORDER PASSED
Digitally signed by B LAVANYA Location: HIGH COURT OF KARNATAKA
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NC: 2024:KHC:41873-DB ITA No. 47 of 2023
BY THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE -6 (1) (1), BENGALURU AND ETC.
THIS APPEAL, COMING ON FOR HEARING, 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 Y.V., for appellants/Revenue and learned counsel Sri.Ashok A. Kulkarni,
learned counsel for the respondent/assessee.
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 11.07.2022 passed by the Income Tax Appellate Tribunal Bangalore Benches ‘A’, Bangalore (for short, ‘Appellate Authority’) in ITA No.418/Bang/2015 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, the Tribunal is right in law holding that the order passed under section 92CA(3) of the Act is barred by limitation and bad in law without appreciating that the fact that Transfer
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NC: 2024:KHC:41873-DB ITA No. 47 of 2023
Pricing Order was passed on 30.1.2014 for A.Y.2010-11 which is within 60 days prior to the limitation referred to in Section 153(1) of the Act for passing the assessment order and hence, the order passed is within limitation period as it is before 30.1.2014 and as such the Transfer Pricing Order cannot be quashed? 2. Whether on the facts and in the circumstances of the case, the Tribunal’s order can be said as perverse in nature in quashing the Transfer Pricing Order which has been passed by Transfer Pricing Officer in accordance within parameters set out in Section 92CA and within limitation period set out in Section 153 (1) of the Act?
Learned counsel for the assessee submits that the tax effect in this appeal is less than Rs.2 Crores and therefore, the appeal should not be entertained 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.
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.
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NC: 2024:KHC:41873-DB ITA No. 47 of 2023
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 questions 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.: 29