THE PR. COMMISSIONER OF INCOME TAX, CENTRAL vs. M/S BARBEQUE NATION HOSPITALITY LTD

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ITA/389/2023HC KarnatakaKAHC01027219202319 August 2024Bench: S.G.PANDIT,C.M. POONACHA4 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that the appeal was not maintainable due to the monetary limit prescribed by the subsequent circular. Therefore, the appeal was dismissed on this technical ground.

What were the facts?

The Revenue filed an appeal against an ITAT order that allowed the assessee's appeal. The appeal was filed after a circular prescribing monetary limits for High Court appeals was issued.

What were the issues?

The primary issue was the maintainability of the appeal before the High Court based on the monetary limit stipulated in a subsequent circular. The substantial questions of law regarding the ITAT's order were left open.

Which sections of the Income-tax Act were involved?

Section 265A,Section 153A,Section 263,Section 143(3)

AI-generated summary — verify with the full judgment below

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NC: 2024:KHC:33396-DB ITA No. 389 of 2023

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 19TH DAY OF AUGUST, 2024 PRESENT THE HON'BLE MR JUSTICE S.G.PANDIT AND THE HON'BLE MR JUSTICE C.M. POONACHA INCOME TAX APPEAL NO. 389 OF 2023 BETWEEN:

1.

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

2.

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

AND:

M/S BARBEQUE NATION HOSPITALITY LTD NO 62, SITE NO 13,16TH CROSS, N S PALYA, BTM LAYOUT, BENGALURU 560076, PAN AAKCG3053N …RESPONDENT (BY SRI. A SHANKAR, SENIOR ADVOCATE FOR SRI. MADHUSUDHAN U A., 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 BHARATHI S Location: HIGH COURT OF KARNATAKA

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NC: 2024:KHC:33396-DB ITA No. 389 of 2023

APPEAL AND SET ASIDE THE ORDERS PASSED BY THE INCOME-TAX APPELLATE TRIBUNAL, BENGALURU IN ITA NO.487/BANG/2022 DATED 19.12.2022 FOR ASSESSMENT YEAR 2013-2014 ANNEXURE- C AND CONFIRM THE ORDER OF THE U/S 263 CONFIRMING THE ORDER PASSED BY THE DEPUTY COMMISSIONER OF INCOME-TAX, CENTRAL CIRCLE - 2(2), 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)

1.

This appeal is filed by the Revenue questioning the order passed by the Income Tax Appellate Tribunal, Bengaluru1 in ITA No.487/Bang/2022 dated 19.12.2022 for the assessment year 2013-14 at Annexure-C to the appeal. 2. The Revenue has raised 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 law in allowing appeal filed by assesse by holding that issues involved in the order passed under Section 143(3)

1 Hereinafter referred to as the ‘Tribunal’

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NC: 2024:KHC:33396-DB ITA No. 389 of 2023

r/w/s 153A are not based on incriminating materials found during course of search and as such assessment order cannot be said as erroneous and prejudical to interest of Revenue ignoring that Section 153A do not stipulate that there must be incriminating material to pass order under said section and as such there was no such requirement in law?” 2. "Whether, on the facts and in the circumstances of the case, Tribunal's order can be said as perverse in nature in not appreciating that conditions set out in Section 263 r/w Explanation 2 were fully satisfied to take up assessment order for revision proceedings?”

3.

"Whether on the facts and in the circumstances of the case, the Tribunal’s order can be said as perverse in nature in ignoring mandate of Section 263 as well as Section 153A of the Act?”

3.

Appeal was filed on 02.06.2023. Monetary value involved in this appeal is `93,75,000/- . Subsequent to filing of the appeals, Circular bearing No.5/2024 [F.No.279/Misc.142/2007-ITJ(PT.)] dated 15.3.2024 is issued under Section 265(A) of the Income Tax Act, 1961 prescribing monetary limit to prefer an appeal before the High Court. 4. In view of the above Circular, the appeal would not be maintainable since monetary value involved in this appeal

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NC: 2024:KHC:33396-DB ITA No. 389 of 2023

is less than rupees one crore. Therefore, the above appeal would not survive for consideration and it is dismissed. 5. In view of the above, the substantial questions of law raised in the present appeal are kept open to be considered in an appropriate case.

Sd/- (S.G.PANDIT) JUDGE

Sd/- (C.M. POONACHA) JUDGE

BS List No.: 1 Sl No.: 44

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