THE PR COMMISSIONER OF INCOME TAX CENTRAL vs. SHRI KASIREDDY RANADHEER REDDY

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ITA/154/2023HC KarnatakaKAHC01016673202330 September 2024Bench: S.G.PANDIT,C.M. POONACHA4 pages
AI SummaryDismissed

What did the High Court hold?

The High Court disposed of the appeal, granting the Revenue liberty to revive it if the matter falls within exceptions of the CBDT Circulars. The substantial questions of law were kept open for future adjudication.

What were the facts?

The Revenue appealed against an ITAT order that set aside a rectification order passed under Section 154. The rectification enhanced the assessee's tax liability under Section 115BBE. The assessee argued that the appeal should not be entertained due to low tax effect as per CBDT Circulars.

What were the issues?

Whether the ITAT order was perverse in holding that the Assessing Officer was incorrect in passing a rectification order under Section 154, and whether the tax effect threshold in CBDT Circulars bars the appeal.

Which sections of the Income-tax Act were involved?

Section 154,Section 115BBE,Section 260-A

AI-generated summary — verify with the full judgment below

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NC: 2024:KHC:41874-DB ITA No. 154 of 2023

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 30TH DAY OF SEPTEMBER, 2024 PRESENT THE HON'BLE MR JUSTICE S.G.PANDIT AND THE HON'BLE MR JUSTICE C.M. POONACHA INCOME TAX APPEAL NO. 154 OF 2023 BETWEEN:

1.

THE PR. COMMISSIONER OF INCOME TAX CENTRAL 3RD FLOOR, C R BUILDING, QUEENS ROAD, BENGALURU 560001

2.

THE DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE -2 (1), 3RD FLOOR, C R BUILDING, QUEENS ROAD, BENGALURU 560001 …APPELLANTS (BY SRI. DILIP M.,ADVOCATE A/W SRI. RAVIRAJ Y V, ADVOCATE)

AND:

SHRI KASIREDDY RANADHEER REDDY NO. 5/19, KURAVAPALLI (V) T SUNDUPALLI, GUDDAPAH 516 214, ANDHRA PRADESH, PAN AMCPR 4790E …RESPONDENT (BY SRI. NAGHARISH G S.,ADVOCATE)

THIS ITA / INCOME TAX APPEAL IS FILED UNDER SEC.260-A OF THE INCOME TAX ACT, 1961, PRAYING TO FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED ABOVE, ALLOW THE

Digitally signed by B LAVANYA Location: HIGH COURT OF KARNATAKA

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NC: 2024:KHC:41874-DB ITA No. 154 of 2023

APPEAL AND SET ASIDE THE ORDERS PASSED BY THE INCOME-TAX APPELLATE TRIBUNAL, BENGALURU IN ITA NO. 264/BANG/2022 DATED 26/09/2022 FOR ASSESSMENT YEAR 2017-2018 ANNEXURE - C AND CONFIRM THE ORDER OF THE APPELLATE COMMISSIONER CONFIRMING THE ORDER PASSED BY THE DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-2(1) , BENGALURU AND ETC.

THIS APPEAL, COMING ON FOR HEARING, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER:

CORAM: HON'BLE MR JUSTICE S.G.PANDIT and HON'BLE MR JUSTICE C.M. POONACHA

ORAL JUDGMENT (PER: HON'BLE MR JUSTICE S.G.PANDIT)

Heard the learned counsel Sri. Dilip M. along with Sri.Raviraj Y.V., for appellants/Revenue and learned counsel Sri.Nagharish G.S.,

learned counsel for the respondent/assessee.

2.

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 26.09.2022 passed by the Income Tax Appellate Tribunal, ‘C’ Bench, Bengaluru (for short, ‘Appellate Authority’) in ITA No.264/Bang/2022 for the assessment year 2017-18, raising the following substantial question of law:

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NC: 2024:KHC:41874-DB ITA No. 154 of 2023

“Whether on the facts and in the circumstances that the Tribunal’s order is perverse in holding that the Assessing Officer is not correct in passing the rectification under section 154 of the Act enhancing the tax liability of the assessee under section 115BBE and deleted the same ignoring that conditions prescribed for rectification as required under section 154 was fully satisfied considering the facts and material on which established that all conditions required for invoking Section 115BBE of the Act?”

3.

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.

4.

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.

5.

In view of the aforesaid submissions, the appeal is disposed of with liberty as prayed for by the learned counsel for

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NC: 2024:KHC:41874-DB ITA No. 154 of 2023

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

Sd/- (S.G.PANDIT) JUDGE

Sd/- (C.M. POONACHA) JUDGE

BS List No.: 4 Sl No.: 31

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