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HC-KAR NC: 2025:KHC:38660-DB ITA No. 89 of 2021
IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 25TH DAY OF SEPTEMBER, 2025 PRESENT THE HON'BLE MR. JUSTICE S.G.PANDIT AND THE HON'BLE MR. JUSTICE K. V. ARAVIND INCOME TAX APPEAL NO. 89 OF 2021 BETWEEN: 1. PR. COMMISSIONER OF INCOME TAX - 5 BMTC COMPLEX KORAMANGALA, BANGALORE.
THE INCOME TAX OFFICER WARD-5(2)(3), BENGALURU. …APPELLANTS (BY SRI. SANMATHI E. I., ADV.)
AND: LAXMIPAT DUDHERIA (HUF) NO.66, NAVINIKETAN K.R. ROAD, BASAVANGUDI, BENGALURU- 4, PAN: AJTPJ9834 B …RESPONDENT (BY SRI. K.R. PRADEEP AND SMT. GIRIJA G.P., ADV.)
THIS APPEAL IS FILED UNDER SECTION 260-A OF INCOME TAX 1961, ARISING OUT OF ORDER DATED 10.01.2020 PASSED IN ITA NO.2377/BANG/2018, FOR THE ASSESSMENT YEAR 2014-2015, PRAYING TO DECIDE THE FOREGOING QUESTION OF LAW AND / OR SUCH OTHER QUESTIONS OF LAW AS MAY BE FORMULATED BY THE COURT AS DEEMED FIT AND ETC.
THIS APPEAL, COMING ON FOR ADMISSION, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER:
CORAM: HON'BLE MR. JUSTICE S.G.PANDIT AND HON'BLE MR. JUSTICE K. V. ARAVIND
Digitally signed by NANJUNDACHARI Location: HIGH COURT OF KARNATAKA
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HC-KAR NC: 2025:KHC:38660-DB ITA No. 89 of 2021
ORAL JUDGMENT (PER: HON'BLE MR. JUSTICE K. V. ARAVIND)
Heard learned senior standing counsel Sri.E.I.Sanmathi for appellants and learned counsel Sri.K.R.Pradeep and Smt.Girija.G.P., learned counsel for respondent. Perused the appeal papers.
This appeal by the Revenue under Section 260A of the Income Tax Act, 1961 (for short, ‘1961 Act’) against the order dated 10.01.2020 in ITA.No.2377/Bang/2018 passed by the Income Tax Appellate Tribunal “SMC-A” Bench, Bengaluru (for short, ‘the Tribunal’) for the assessment year 2014-15.
The Assessing Officer has completed the assessment under Section 144 read with Section 147 of 1961 Act on 27.03.2017 determining the tax liability. The assessee preferred appeal before the Commissioner of Income Tax (Appeals) for short, (CIT(A)). The CIT(A) by order dated 24.07.2018 dismissed the appeal. The
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HC-KAR NC: 2025:KHC:38660-DB ITA No. 89 of 2021
assessee preferred further appeal before the Tribunal. The Tribunal under impugned order set aside the order of assessment and remitted the matter to Assessing Officer for fresh consideration, allowing opportunity to cross- examination of the persons whose statements were relied on by the Assessing Officer. This order of remand is impugned in the present appeal.
At the outset, learned counsel Sri.K.R.Pradeep appearing for the respondent/assessee submits that the Assessing Officer has not given effect to the order of remand and the same is barred by limitation under Section 153 of the Act. Learned counsel submits that in view of the expiry of limitation for passing fresh assessment, the questions raised in the present appeal is academic.
Per contra, learned senior standing counsel Sri.E.I.Sanmathi appearing for the appellants/Revenue submits that as per the Income Tax Portal, no order of assessment is found to have been passed giving effect to
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HC-KAR NC: 2025:KHC:38660-DB ITA No. 89 of 2021
the order of the Tribunal remanding for fresh consideration. Learned senior standing counsel in the alternative submits that in view of the pendency of the present appeal, the consequential order is not passed.
We have considered the submissions of the learned counsel appearing for the parties.
The grievance raised by the Revenue in the present appeal is the correctness of the order of remand and also the direction issued to the Assessing Officer to allow cross-examination of the persons whose statements were recorded and relied on by the Assessing Officer. It is the contention of the Revenue that all the persons whose statements were recorded cannot be made available for cross-examination and the directions issued by the Tribunal cannot be implemented.
The assessment order to be passed pursuant to the order of remand is bound by limitation under Section 153 of the Act. There is no stay of operation of the order
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HC-KAR NC: 2025:KHC:38660-DB ITA No. 89 of 2021
of remand passed by the Tribunal. The pendency of this appeal is not an impediment for the Assessing Officer to give effect and make fresh assessment order as directed by the Tribunal. If the Assessing Officer has any difficulty in giving effect to the order of the Tribunal, the Assessing Officer was not prevented from seeking further orders at the hands of this Court. In this case, no such prayer is made before this Court.
Be that as it may, the consideration of the above contentions in the considered opinion of this Court renders academic. The Assessing Officer is required to complete the assessment within nine months from the financial year in which order of the Tribunal was received. The order of the Tribunal is dated 10.01.2020 and end of the financial year would be 31.03.2020 and the remand assessment order ought to have been completed before 31.12.2020. Even as on today, the fresh assessment order giving effect to the order of the Tribunal is not passed.
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HC-KAR NC: 2025:KHC:38660-DB ITA No. 89 of 2021
Learned counsel for the assessee has made categorical statement that no consequential order has been served as on date. Learned senior standing counsel for the Revenue makes a statement that no such order is available in the Income Tax Portal.
In the light of the statements made by both the counsel, we have to draw an inference that no order is passed giving effect to the order of the Tribunal. In view of the expiry of limitation for passing fresh assessment order, the question of law raised in the present appeal is only academic exercise, which we are not inclined undertake. The appeal is meritless and accordingly stands dismissed.
Sd/- (S.G.PANDIT) JUDGE
Sd/- (K. V. ARAVIND) JUDGE
NC CT:bms: List No.: 1 Sl No.: 10