THE PR. COMMISSIONER OF INCOME TAX vs. SRI. PRAKASH BHAJANDAS TALREJA

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

THE DEPUTY COMMISSIONER OF INCOME-TAX, CENTRAL CIRCLE - 1(3), 3RD FLOOR, C.R. BUILDING, QUEEN'S ROAD, BENGALURU - 560 001. …APPELLANTS (BY SRI. RAVIRAJ Y.V, ADVOCATE A/W SRI. M. DILIP, 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 22.03.2024 passed by the Income Tax Appellate Tribunal, ‘B’ Bench, Bengaluru (for short ‘Appellate Authority’) in ITA.No.1062/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 tribunal was right in holding that merely because the searched party offered the income in the return filed under section 153A, the same cannot form the basis for addition in the case of the assesse, from whom the searched party had received the undisclosed payments"?

"Whether on the facts and in the circumstances of the case and in law, the tribunal was right in holding that loose sheets found during the course of search and containing incriminating material and statement recorded during the course of search are of no evidentiary value as per the Indian Evidence act, 1872 (now Known as Bharatiya Sakshya Adhiniyam, 2023)"?

"Whether on the facts and in the circumstances of the case and in law, the tribunal was right in holding that huge amount of money could not be lent without any loan agreement, promissory note, cheque or security papers"?

"Whether on the facts and in the circumstances of the case and in law, the tribunal was right in holding that no adverse inference can be drawn against the assesse for not availing the opportunity of cross examination"?

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

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.