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NC: 2024:KHC:41208-DB ITA No. 422 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. 422 OF 2023 BETWEEN:
THE PR. COMMISSIONER OF INCOME TAX 5TH FLOOR, BMTC BUILDING, 80 FEET ROAD, KORMANGALA BENGALURU-560095
THE JOINT COMMISSIONER OF INCOME TAX LTU, PRESENT ADDRESS ACIT, CIRCLE 7 (1) (1), 2ND FLOOR, BMTC BUILDING, 80 FEET ROAD, KORMANGALA BENGALURU-560095 …APPELLANTS (BY SRI. DILIP M.,ADVOCATE A/W SRI. RAVIRAJ Y V, ADVOCATE)
AND:
M/S. TEXAS INSTRUMENTS INDIA PVT LTD 66/3, BAGMANE TECH PARK, CV RAMAN NAGAR POST BENGALURU-560093 PAN AAACT5445M …RESPONDENT (BY SRI. P D ANKUR.,ADVOCATE)
THIS ITA / INCOME TAX APPEAL IS FILED UNDER SEC.260-A OF THE INCOME TAX ACT, 1961, PRAYING TO FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED ABOVE, ALLOW THE
Digitally signed by BHARATHI S Location: HIGH COURT OF KARNATAKA
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NC: 2024:KHC:41208-DB ITA No. 422 of 2023
APPEAL AND SET ASIDE THE ORDERS PASSED BY THE INCOME-TAX APPELLATE TRIBUNAL, BENGALURU IN ITA NO.2850/BANG/2019 DATED 02.12.2020 FOR ASSESSMENT YEAR 2008-2009 ANNEXURE-D AND CONFIRM THE ORDER OF THE APPELLATE COMMISSIONER CONFIRMING THE ORDER PASSED BY THE ASST. COMMISSIONER OF INCOME-TAX, CIRCLE-7(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. P.D. Ankur., 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 02.12.2020 passed by the Income Tax Appellate Tribunal, ‘A’ Bench, Bengaluru (for short, ‘Appellate Authority’) in ITA No.2850/Bang/2019 for the assessment year 2008-09, raising the following substantial questions of law:
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NC: 2024:KHC:41208-DB ITA No. 422 of 2023
“1. Whether on the facts and in the circumstances of the case, the Tribunal is right in law in setting aside disallowance made in respect or provision for transitional liability made towards gratuity fund amounting to `1,67,70,105/- and leave encasement amounting to `1,53,69,291/- by following its earlier order without analyzing to facts of present case and when the deduction claimed has not been routed through P & L Account as required in law. 2. Whether on the facts and circumstances of the case, the Tribunal’s order is perverse in nature in setting aside disallowance made in respect or provision for transitional liability made towards gratuity fund amounting to `1,67,70,105/- and leave encasement amounting to `1,53,69,291/- ignoring findings of assessing authority and CIT(A)?”
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
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NC: 2024:KHC:41208-DB ITA No. 422 of 2023
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.
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.: 39