THE PR. COMMISSIONER OF INCOME TAX vs. M/S MENZIES AVIATION BOBBA (BANGALORE) PVT LTD

THE PR. COMMISSIONER OF INCOME-TAX, 5TH FLOOR, BMTC BUILDING, 80 FEE ROAD, KORMANGALA, BENGALURU-560 095.

THE ASST. COMMISSIONER OF INCOME TAX, CIRCLE-4(1)(2) PRESENT ADDRESS DCIT, CIRCLE 4- (1 )(1), 2ND FLOOR, BMTC BUILDING, 80 FEET ROAD, KORMANGALA, BENGALURU-560 095.

Heard the learned counsel Sri.Dilip.M., along with Sri. Raviraj.Y.V., learned counsel for appellants/Revenue and learned counsel Sri. Madhusudhan.U.A. 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 05.12.2022 passed by the Income Tax Appellate Tribunal, ‘B’ Bench, Bengaluru (for short, ‘Appellate Authority’) in ITA.No.854/Bang/2022 for the assessment year 2017-18, raising the following substantial questions of law: 1. "Whether, on the facts and in the circumstances of the case, the Tribunal was

"Whether, on the facts and in the circumstances of the case, the Tribunal is justified in law in holding that the cargo handling contract entered into with BIAL by assessee is with statutory body satisfying condition set forth in section 80IA(4) when BIAL is only a Company whose motive only making profit and is only a instrument of State?"

"Whether, on the facts and in the circumstances of the case, Tribunal's order is perverse in nature as Tribunal has erred in holding that assessee is eligible for claiming

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 counsel for the revenue. However, the question of law is kept open to be adjudicated in an appropriate proceeding.