THE PR. COMMISSIONER OF INCOME TAX vs. M/S MANIPAL EDUCATION AND MEDICAL GROUP INDIA PVT LTD.,

THE PR. COMMISSIONER OF INCOME TAX CENTRAL, 3RD FLOOR, C.R BUILDING, QUEENS ROAD, BENGALURU-560 001.

THE DEPUTY COMMISSIONER OF INCOME TAX CIRCEL-4(1) (2), PRESENT ADDRESS, CENTRAL CIRCLE 1(2) 3RD FLOOR, C.R.BUILDING, QUEEN'S ROAD, BENGALURU-560 001. …APPELLANTS

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 29.08.2023 passed by the Income Tax Appellate Tribunal, ‘C’ Bench, Bengaluru (for short ‘Appellate Authority’) in ITA.No.105/Bang/2023 for the assessment year 2015-16, raising the following substantial questions of law: 1. "Whether on the facts and in the circumstances of the case and in law, the order of the tribunal was perverse in so far as the tribunal had not enquired into the correctness of the facts claimed by the assessee and had ignored the submissions made by the assesse itself during the assessment proceedings that the additional loan form IDFC was used for purchase of the capital asset"?

"Whether on the facts and in the circumstances of the case and in law, the tribunal was right in confirming that the assesse has interest free funds based on the facts of the earlier assessment year 2013-14 & 2014-15 and applying the same to the current A.Y. i.e. 2015- 16"?

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.