THE PR COMMISSIONER OF INCOME TAX vs. SLN COFFEE CURING WORKS

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

THE ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE AAYAKAR BHAVAN, ROOM NO. 306, 21/ 16, RESIDENCY ROAD, NAZARBAD MYSURU 570010 …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 20.01.2023 passed by the Income Tax Appellate Tribunal, ‘B’ Bench, Bengaluru (for short, ‘Appellate Authority’) in

Whether, on the facts and in the circumstances of the case, the Tribunal is justified in holding that the opening balances of loan which were also appearing in closing balance as on 31/3/2012 cannot be treated as unaccounted advances without appreciating that deeming provisions of Section 69 would apply in case of investments not recorded in the books of accounts?

Whether, on the facts and in the circumstances of the case, the Tribunal's order can be said as perverse in nature as Tribunal has failed to consider the reasons of Commissioner of Income Tax(A) and Assessing Officer and materials on record?

Whether on the facts and in the circumstances of the case, Tribunal's order can be said as perverse in nature in holding that the opening balances of loan which were also appearing in closing balance as on 31/3/2012 cannot be treated

Whether on the facts and in the circumstances of the case, Tribunal's order can be said as perverse in nature in directing assessing authority to compute the unaccounted advances on the peak credit basis ignoring the fact that the advances were unaccounted?

Whether on the facts and in the circumstances of the case, the tribunal's order can be said as perverse in holding that recovery of the loan and interest was doubtful ignoring the fact that the partners were all family members and had full liberty to transact without any binding nature as per commercial rules?

Whether on the facts and in the circumstances of the case, the Tribunal's order can be said as perverse in holding that interest was not taxable ignoring the fact that the assessee and its partners have recovered such interest payment and details of same were available in seized materials?

Whether on the facts and in the circumstances of the case, the Tribunal's order can be said as perverse in treating the interest on loan as notional although the same was actual interest accrued as per details available in the seized documents?

Whether on the facts and in the circumstances of the case, the Tribunal's order can be said as perverse in directing the

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.

In view of the aforesaid submissions, the appeal is disposed of with liberty as prayed for by the learned