THE PR. COMMISSIONER OF INCOME -TAX vs. SHRI. B.N. RAMACHANDRA (HUF)

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

THE DEPUTY COMMISSIONER OF INCOME-TAX, CIRCLE-1, PRESENT ADDRESS ITO, WARD-1 AND TPS, AAYAKAR BHAVAN, BELUR ROAD, VIJAYANAGAR, HASSAN-573 201. …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 07.07.2023 passed by the Income Tax Appellate Tribunal, ‘C’ Bench, Bengaluru (for short, ‘Appellate Authority’) in ITA.No.1694/Bang/2013 for the assessment year 2010-11.

This

Whether on facts and circumstances of the case and in law, the Tribunal is right in allowing the expenditure claimed u/s 48 of the Act to the extent of Rs. 3,27,00,000/- by confirming the order of CIT (Appeal)?

Whether on facts and circumstances of the case and in law, the Tribunal is right in allowing the expenditure claimed u/s 48 of the Act to the extent of Rs. 3,27,00,000/- even though the assessee has failed to prove the expenditure with evidences.?

Whether on facts and circumstances of the case and in law, the Tribunal is right in allowing the expenditure claimed u/s 48 of the Act to the extent of Rs. 1,20,00,000/- even though the same is incurred in cash?

Whether on facts and circumstances of the case and in law, the Tribunal is right in allowing the expenditure claimed u/s 48 of the Act to the extent of Rs.3,86,40,00/-(erroneously mentioned as Rs. 3,86,040,000/-) in the Tribunal order?

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.