THE PR. COMMISSIONER OF INCOME TAX vs. SHRI M N RAJENDRA KUMAR

THE PR. COMMISSIONER OF INCOME TAX CENTRAL CIRCLE C.R. BUILDING QUEENS ROAD BENGALURU - 560 001

THE DEPUTY COMMISSIONER OF INCOME TAX CENTRAL CIRCLE -1 C R BUILDING ATTAVARA MANGALORE - 575 001 …APPELLANTS (BY SRI. RAVI RAJ Y V.,ADVOCATE A/W SRI. DILIP M, ADVOCATE)

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 24.8.2020 passed by the Income Tax Appellate Tribunal, ‘C’ Bench, Bengaluru (for short, ‘Appellate Authority’) in ITA.No.2259/Bang/2019 for the assessment year 2012-13, raising the following substantial questions of law: “1. " Whether, on the facts and in the circumstances of the case and law, the Tribunal is right in deleting the additions made by assessing authority in respect of cash investment in

Whether, on the facts and in the circumstances of the case, in not considering the voluntary admission's made in statements recorded under Section 132(4) of the Act on two different dates as well as once recorded under Section 131 of the Act which were retraced later after 18 months without giving due credence to the digital evidences and material found during course of search"?

Whether on the facts and in the circumstances of the case, the Tribunal is right in law in not directing assessing authority to make addition in the hands of the firm as per provisions of Explanation 2 to Section 153 read with Section 150 of the Act as less than six years had passed from the end of the A.Y.2012-13 as on the date of passing of assessment order in the case of Mr.M.N.Rajendra Kumar, which had been passed on 30/12/2018 and the assessment for A.Y.2012-13 could have been re-opened as on this date"?”

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 questions of law are kept open to be adjudicated in an appropriate proceeding.