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NC: 2024:KHC:40405-DB ITA No. 705 of 2019
IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 27TH 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.705 OF 2019
BETWEEN:
THE PR. COMMISSIONER OF INCOME-TAX, 5TH FLOOR, BMTC BUILDING, 80 FEET ROAD, KORMANGALA, BENGALURU-560 095.
THE DEPUTY COMMISSIONER OF INCOME-TAX, CIRCLE-1(1)(1), PRESENT ADDRESS DCIT, CIRCLE-2(1)(1), 2ND FLOOR, BMTC BUILDING, 80 FEET ROAD, KORMANGALA, BENGALURU-560 095.
…APPELLANTS
(BY SRI. SUSHAL TIWARI, ADVOCATE)
Digitally signed by B LAVANYA Location: HIGH COURT OF KARNATAKA
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NC: 2024:KHC:40405-DB ITA No. 705 of 2019
AND:
M/S. DTZ INTERNATIONAL PROPERTY ADVISOR PVT. LTD., LEVEL 3, FEATHERLITE VISTA, NO.8, 1ST MAIN ROAD, VASANTHNAGAR, BENGALURU-560 052 PAN.AACCD 0007B …RESPONDENT
(BY SRI. K.R. VASUDEVAN, A/W SRI. ANKUR P.D., ADVOCATES)
THIS ITA / INCOME TAX APPEAL IS FILED UNDER SEC.260-A OF INCOME TAX ACT 1961, ARISING OUT OF ORDER DATED 15/03/2019 PASSED IN IT(TP)A NO.78/BANG/2015, FOR THE ASSESSMENT YEAR 2008-2009 PRAYING TO FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED ABOVE 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
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NC: 2024:KHC:40405-DB ITA No. 705 of 2019
ORAL JUDGMENT (PER: HON'BLE MR JUSTICE S.G.PANDIT)
Heard the learned counsel Sri.Sushal Tiwari for appellants/Revenue and learned counsel Sri. K.R.Vasudevan along with Sri. Ankur.P.D., learned counsel for 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 15.03.2019 passed by the Income Tax Appellate Tribunal, ‘A’ Bench, Bengaluru (for short, ‘Appellate Authority’) in IT(TP)A.No.78/Bang/2015 for the assessment year 2008-09.
This Court, admitted the appeal on 08.07.2021 to consider 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 directing the Transfer Pricing Officer to exclude certain comparables by following its earlier decisions which have not reached finality even when the said
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NC: 2024:KHC:40405-DB ITA No. 705 of 2019
comparable satisfies qualitative and quantitative filters?
Whether on the facts and in the circumstances of the case, the Tribunal is right in law in directing the Transfer Pricing Officer to exclude M/s.HGS Business Service Ltd., M/s. Killick Agencies & Marketing and M/s. Priya International Ltd. by relying upon its earlier orders which has not reached finality even when the TPO had considered the said comparables after satisfying all the required tests?
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
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NC: 2024:KHC:40405-DB ITA No. 705 of 2019
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
SMJ List No.: 4 Sl No.: 16