THE PR. COMMISSIONER OF INCOME TAX (2) vs. M/S. MFAR HOLDINGS PVT. LTD.

THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE 4(1)2-KORAMANGALA, BANGALORE. …APPELLANTS (BY SRI. SANMATHI. I, ADVOCATE) AND:

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 25.10.2023 passed by the Income Tax Appellate Tribunal, ‘A’ Bench, Bengaluru (for short ‘Appellate Authority’) in ITA.No.1931/Bang/2017 for the assessment year 2009-10, raising the following substantial questions of law:

"Whether on the facts and in the circumstances of the case, the Tribunal's order is perverse in nature holding that assumption of jurisdiction by Assessing Authority is not correct as consolidated notice is issued under section 143(2) of the Act for year under consideration and quashed the assessment order ignoring that issue of notice under section 143(2) does not arise in present case as assessments

"Whether on the facts and in the circumstances of the case, the Tribunal's order can be said as perverse in nature in ignoring that nowhere in Section, it mandates that separate notices are to issues for each assessment year and a sit is case of block assessment year, no separate notices are required to be sent"?.

"Whether on the facts and in the circumstances of the case, the Tribunal's order is perverse in nature in nature as Tribunal failed to observe that purpose of issuing notice is served and assesse never objected for said notice during course of assessment proceedings"?

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.