THE PR COMMISSIONER OF INCOME TAX vs. M/S CONCORDE HOUSING CORPORATION PVT LTD

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ITA/235/2023HC KarnatakaKAHC01019878202330 September 2024Bench: S.G.PANDIT,C.M. POONACHA4 pages
AI SummaryDismissed

What did the High Court hold?

The High Court disposed of the appeal with liberty to the Revenue to revive it if exceptions under relevant CBDT circulars apply. The substantial questions of law were kept open for future adjudication.

What were the facts?

The Revenue appealed against an ITAT order that allowed the assessee's appeal, holding an issue to be debatable and not rectifiable under Section 154. The assessee argued the appeal should not be entertained due to a low tax effect, citing CBDT Circular No. 09/2024.

What were the issues?

Whether the ITAT's order allowing rectification under Section 154 was perverse, and if the conditions for rectification were met. The appeal also raised the issue of maintainability due to low tax effect as per CBDT circulars.

Which sections of the Income-tax Act were involved?

Section 260-A,Section 154

AI-generated summary — verify with the full judgment below

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NC: 2024:KHC:41203-DB ITA No. 235 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. 235 OF 2023 BETWEEN:

1.

THE PR COMMISSIONER OF INCOME TAX CENTRAL 3RD FLOOR, C.R. BUILDING, QUEEN'S ROAD, BENGALURU-560001.

2.

THE ASST. COMMISSIONERJ OF INCOME-TAX, CENTRAL CIRCLE-1(4), DCIT, CENTRAL CIRCLE-1(1), 3RD FLOOR, C.R. BUILDING, QUEEN'S ROAD, BENGALURU-560001. …APPELLANTS (BY SRI. DILIP M.,ADVOCATE A/W SRI. RAVIARAJ Y V, ADVOCATE)

AND:

M/S CONCORDE HOUSING CORPORATION PVT LTD NO.46/A, CONCORDE GROUP 1ST MAIN, III PHASE, J.P. NAGAR, LBENGALURU-560078. PAN. AADCC4087F.

…RESPONDENT (BY SRI. RAVI SHANKAR S V.,ADVOCATE)

Digitally signed by BHARATHI S Location: HIGH COURT OF KARNATAKA

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NC: 2024:KHC:41203-DB ITA No. 235 of 2023

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 APPEAL AND SET ASIDE THE ORDERS PASSED BY THE INCOME-TAX APPELLATE TRIBUNAL, BENGALURU IN ITA NO. 698/BANG/2022 DATED 06.12.2022 FOR ASSESSMENT YEAR 2013-2014 ANNEXURE- D AND CONFIRM THE ORDER OF THE APPELLATE COMMISSIONER CONFIRMING THE ORDER PASSED BY THE DEPUTY COMMISSIONER OF INCOME-TAX , CIRCLE-1(4), 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., for appellants/Revenue and learned counsel Sri. Ravi Shankar. S.V., 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 06.12.2022 passed by the Income Tax Appellate Tribunal, ‘A’ Bench, Bengaluru (for short, ‘Appellate Authority’) in

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NC: 2024:KHC:41203-DB ITA No. 235 of 2023

ITA No.698/Bang/2022 for the assessment year 2013-14, raising the following substantial questions of law: “1. Whether on the facts and in the circumstances of the case, the Tribunal’s order can be said as perverse as Tribunal has allowed the appeal preferred by assesse by holding that issue is debatable when in sharp contract the Tribunal itself upheld the finding of CIT(A) in para 11 of its order. The Tribunal holds that Assessing Officer should have rectified the assessment order but at the same time, the Tribunal holds that issue is debatable and rectification cannot be made by passing order under section 154 of the Act? 2. Whether on the facts and circumstances of the case, the Tribunal is right in law in allowing in setting aside order passed under section 154 of the Act when the conditions set out in section 154 are full satisfied in facts of present case and additions made in said order are in accordance with provisions 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

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NC: 2024:KHC:41203-DB ITA No. 235 of 2023

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 the revenue. However, the question 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.: 0

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