THE PR COMMISSIONER OF INCOME TAX vs. SMT G VIJAYA

THE PR. COMMISSIONER OF INCOME TAX CENTRAL 3RD FLOOR, C R BUILDING, QUEENS ROAD, BENGALURU 560001

THE DEPUTY COMMISSIONER OF INCOME TAX CENTRAL CIRCLE 1(3) 3RD FLOOR, C R BUILDING, QUEENS ROAD, BENGALURU 560001 …APPELLANTS (BY SRI. DILIP M.,ADVOCATE A/W SRI. RAVIRAJ Y V, ADVOCATE)

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 28.04.2022 passed by the Income Tax Appellate Tribunal, ‘A’ Bench, Bengaluru (for short, ‘Appellate Authority’) in ITA.No.948/Bang/2013 for the assessment year 2008-09, 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 in restricting the

Whether on the facts and circumstances of the case and in law, the Tribunal's order can be said as perverse in nature in holding that the addition of unproved liability could be made only by invoking provisions of Section 41(1) of the Act whereas it was a case of unproved creditors and required to be added back as per provision of section 68 of the Act?

Whether on the facts and circumstances of the case and in law, the Tribunal's order can be said as perverse in nature in holding that onus is on Revenue to prove bogus creditors without appreciating that burden is on assessee to discharge prima facie onus by establishing that transaction was genuine and by identifying creditors and proving their credit worthiness in relation to liabilities added back by assessing authority?

Whether on the facts and circumstances of the case and in law, the Tribunal's order can be said as perverse in nature in giving relief to assessee without considering the materials on record and findings of assessing authority?”

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

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.

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.