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NC: 2024:KHC:40426-DB ITA No. 50 of 2023
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. 50 OF 2023
BETWEEN:
THE PR. COMMISSIONER OF INCOME-TAX CENTRAL, 3RD FLOOR, C.R.BUILDING, QUEENS ROAD BENGALURU-560 001.
THE DEPUTY COMMISSIONER OF INCOME-TAX CENTRAL CIRCLE-1(1) PRESENT ADDRESS: DCIT, CENTRAL CIRCLE-2(2) 3RD FLOOR, C.R.BUILDING QUEENS ROAD BENGALURU-560 001.
…APPELLANTS
(BY SRI. M DILIP, ADVOCATE ALONG WITH SRI. RAVIRAJ Y.V., ADVOCATE)
Digitally signed by BHARATHI S Location: HIGH COURT OF KARNATAKA
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NC: 2024:KHC:40426-DB ITA No. 50 of 2023
AND:
M/S. PRESTIGE ESTATES PROJECTS LTD., PRESTIGE FALCON TOWER NO.19, BRUNTON ROAD BANGALORE NORTH BENGALURU-560 025 PAN-AABCP 8096K …RESPONDENT
(SERVED)
THIS APPEAL IS FILED UNDER SECTION 260-A OF INCOME TAX ACT, 1961, PRAYING TO ALLOW THE APPEAL AND SET ASIDE THE ORDERS PASSED BY THE INCOME-TAX APPELLATE TRIBUNAL, BENGALURU IN ITA NO.69/BANG/2022 DATED 02.06.2022 FOR ASSESSMENT YEAR 2014-2015 (ANNEXURE-D) AND CONFIRM THE ORDER OF THE DEPUTY COMMISSIONER OF INCONE TAX, CENTRAL CIRCLE-2(2), BENGALURU, AND ETC.
THIS APPEAL IS COMING ON FOR FINAL 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:40426-DB ITA No. 50 of 2023
ORAL JUDGMENT (PER: HON'BLE MR JUSTICE S.G.PANDIT)
Heard the learned counsel Sri. Dilip.M., along with Sri. Raviraj.Y.V., learned counsel for the appellants/Revenue.
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 02.06.2022 passed by the Income Tax Appellate Tribunal, 'C' Bench, Bengaluru (for short, ‘Appellate Authority’) in ITA.No.69/Bang/2022 for the assessment year 2014-15.
This
Court,
admitted the appeal on 19.12.2023 to consider the following substantial questions of law: 1. "Whether on the facts and in the circumstances of the case in law, the Tribunal's order can be said as perverse in quashing the rectification order passed under section 154 of the Act when it was passed consequent to mistake apparent from records"?
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NC: 2024:KHC:40426-DB ITA No. 50 of 2023
"Whether on the facts and in the circumstances of the case and in law, the Tribunal's order can be said as perverse in nature in not appreciating that rectification order passed under section 154 of the Act can only be made when glaring mistake of fact or law has been committed by the assessing officer passing the order becomes apparent from records"?
"Whether on the facts and in the circumstances and in law, the Tribunal is correct in allowing appeal preferred assessee by holding that the issue cannot be considered under section 154 of the Act when the same was carried out on an application filed by assessee"?
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.
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NC: 2024:KHC:40426-DB ITA No. 50 of 2023
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
SMJ List No.: 4 Sl No.: 42