PR COMMISSIONER OF INCOME TAX-6 vs. M R SEETHARAM (HUF)

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ITA/258/2017HC KarnatakaKAHC01031676201715 November 2021Bench: S.SUJATHA,V SRISHANANDA5 pages
AI SummaryDismissed

What did the High Court hold?

The High Court noted that the Revenue did not dispute that the appeal had become academic due to the annulment of the assessment order. The appeal was disposed of with liberty to the Revenue to revive it if necessary.

What were the facts?

The Revenue appealed against an ITAT order concerning a Joint Development Agreement and the classification of land. However, subsequent orders led to the annulment of the original assessment order.

What were the issues?

Whether a Joint Development Agreement constituted a transfer and whether converted lands were agricultural lands. The primary issue became the annulment of the assessment order due to jurisdictional defects.

Which sections of the Income-tax Act were involved?

Section 260-A,Section 2(47),Section 2(14),Section 143(2)

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KARNATAKA AT BENGALURU

DATED THIS THE 15TH DAY OF NOVEMBER, 2021

PRESENT

THE HON’BLE MRS.JUSTICE S.SUJATHA

AND

THE HON’BLE MR. JUSTICE V.SRISHANANDA

I.T.A.No.258/2017

BETWEEN :

1 . PR. COMMISSIONER OF INCOME TAX-6 BMTC COMPLEX, KORAMANGALA, BANGALORE-560001.

2 . ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE 6(3)(1) BANGALORE

...APPELLANTS

(BY SRI E.I.SANMATHI, ADV.)

AND :

M.R.SEETHARAM (HUF) GOKULA HOUSE, JALAHALLI, GOKULA, BANGALORE - 560054 PAN:AAHHS7324J

…RESPONDENT

(BY SRI A.SHANKAR, SENIOR COUNSEL FOR SRI M.LAVA, ADV.)

THIS INCOME TAX APPEAL IS FILED UNDER SECTION 260-A OF INCOME TAX ACT 1961, ARISING OUT OF ORDER DATED 27.05.2016 PASSED IN ITA NO.1172/BANG/2015, FOR THE ASSESSMENT YEAR 2007-2008. PRAYING TO DECIDE THE FOREGOING QUESTION OF LAW AND/OR SUCH OTHER QUESTIONS OF LAW AS MAY BE FORMULATED BY THE HON'BLE COURT AS DEEMED FIT. (B) SET ASIDE THE APPELLATE ORDER DATED 27.05.2016 PASSED BY THE ITAT,

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'C' BENCH, BENGALURU, IN APPEAL PROCEEDINGS ITA NO.1172/BANG/2015 FOR ASSESSMENT YEAR 2007-2008.

THIS APPEAL COMING ON FOR HEARING, THIS DAY, S. SUJATHA, J., DELIVERED THE FOLLOWING:

J U D G M E N T

This appeal is filed by the Revenue under Section 260A of the Income Tax Act, 1961 (‘Act’ for short) challenging the order passed by the Income Tax Appellate Tribunal “C” Bench, Bengaluru (‘Tribunal’ for short), dated 27.5.2016 in ITA No.1172/Bang/2015 relating to the assessment year 2007-2008.

2.

This appeal has been admitted by this Court to consider the following substantial questions of law; “1. Whether the Tribunal was justified in law in holding that there is no transfer in terms of Section 2(47) of I.T.Act when a Joint Development Agreement was entered on 22.03.2007 on the facts and circumstances of the case?

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2.

Whether the Tribunal was justified in law in holding that converted lands are to be treated as agricultural lands and consequently will not come within the ambit of Section 2(14) of the Act in the facts and circumstances of the case?

3.

Learned counsel appearing for the assessee has filed a memo along with the relevant consequential orders passed by the Tribunal. It is submitted that this appeal filed by the Revenue has become academic as the entire assessment order has been quashed for want of jurisdiction by the consequential order of the Tribunal and nothing survives in the present appeal.

4.

It is significant to note that the Coordinate Bench of this Court by order dated 27.01.2021 in ITA No.455/2016 has considered the order dated 27.05.2016 passed in C.O.No.223/Bang/2015 (in ITA.No.1172/Bang/2015) i.e., the common order impugned herein, insofar as ITA No.1172/Bang/2015 is

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concerned, and quashed the said order dated 27.05.2016 remanding the matter to the Tribunal to adjudicate the issue whether the notice issued under Section 143(2) of the Act to the assessee is barred by limitation and is contrary to the provisions of the Act. Pursuant to which the Tribunal has passed the order on 01.04.2021 remanding the matter to the Commissioner of Income Tax (Appeals) for fresh consideration.

5.

On further Miscellaneous Petition filed by the assessee pointing out that the Coordinate Bench of this Court in ITA.No.455/2016 has categorically directed the Tribunal to adjudicate the matter and to decide the issue on merits, the matter has been adjudicated and finally decided on merits as per the order dated 11.10.2021, whereby the Miscellaneous Petition filed by the assessee is allowed and the original assessment order is annulled.

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6.

At this stage, it could not be disputed by the Revenue that the appeal would render academic unless the order of the Tribunal passed in M.P.No.48/Bang/2021 is challenged by the Revenue. Hence, learned counsel appearing for the Revenue submits that this appeal could be disposed of with liberty to revive the same in the event of, Revenue preferring any appeal against the order of the Tribunal in M.P.No.48/Bang/2021. 7. The said submission is placed on record. 8. For the reasons aforesaid, the appeal stands disposed of keeping open the substantial questions of law. In other words, this appeal stands disposed of with liberty to the Revenue to revive this appeal, if the occasion arises. Sd/- JUDGE

Sd/- nd

JUDGE

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