What did the High Court hold?

The High Court disposed of the appeal based on a CBDT circular regarding tax effect. Liberty was granted to the Revenue to revive the appeal if exceptions under the circular apply.

The Revenue appealed against an ITAT order concerning assessment year 2005-06. The High Court admitted the appeal to consider if the Tribunal failed to account for Rule 10-B of the Income Tax Rules.

What were the issues?

Whether the ITAT failed to consider Rule 10-B of the Income Tax Rules. Applicability of CBDT circulars on tax effect to the appeal.

PCIT vs M/S First Advantage Global… | Karnataka High Court 2024

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NC: 2024:KHC:40403-DB ITA No. 685 of 2019

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 27TH 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.685 OF 2019

BETWEEN:

THE PR. COMMISSIONER OF INCOME TAX CIT(A), 5TH FLOOR, BMTC BUILDING, 80 FEET ROAD, KORMANGALA, BENGALURU - 560 095.

THE JOINT COMMISSIONER OF INCOME TAX, (OSD), CIRCLE -3(1)(1), PRESENT ADDRESS JCIT, SPECIAL RANGE-3, 2ND FLOOR, BMTC BUILDING, 80 FEET ROAD, KORMANGALA, BENGALURU - 560 095. …APPELLANTS

(BY SRI. DILIP M, ADVOCATE A/W SRI. RAVI RAJ Y.V, ADVOCATE)

Digitally signed by B LAVANYA Location: HIGH COURT OF KARNATAKA

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NC: 2024:KHC:40403-DB ITA No. 685 of 2019

AND:

M/S. FIRST ADVANTAGE GLOBAL OPERATING CENTRE PVT. LTD., (M/S. FIRST ADVANTATE OFFSHORE SERVICES PVT. LTD.,) LEVEL-1, EXPLORER BUILDING, INTERNATIONAL PARK, WHITEFIELD ROAD, BENGALURU - 560 066, PAN: AAACZ 1029M. …RESPONDENT

(BY SMT. M.R. VANAJA, ADVOCATE)

THIS ITA/INCOME TAX APPEAL IS FILED UNDER SEC.260A OF INCOME TAX ACT 1961, ARISING OUT OF ORDER DATED 03.04.2019 PASSED IN C.O.NO. 162/BANG/2013, FOR THE ASSESSMENT YEARS - 2005-2006 IS FILED PRAYING TO FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW 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

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NC: 2024:KHC:40403-DB ITA No. 685 of 2019

ORAL JUDGMENT (PER: HON'BLE MR JUSTICE S.G.PANDIT)

Heard the learned counsel Sri.Dilip.M., along with Sri. Raviraj.Y.V., learned counsel for appellants/Revenue and learned counsel Smt.M.R.Vanaja for respondent/assessee.

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 03.04.2019 passed by the Income Tax Appellate Tribunal, ‘B’ Bench, Bengaluru (for short, ‘Appellate Authority’) in C.O.No.162/Bang/2013 for the assessment year 2005-06.

This Court, admitted the appeal on 09.01.2020 to consider the following substantial question of law:

"Whether the Tribunal while passing the impugned order has failed to take into account the provisions contained in Rule 10-B of the Income Tax Rules?"

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

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NC: 2024:KHC:40403-DB ITA No. 685 of 2019

issued by the Central Board of Direct Taxes. It is also submitted that the aforesaid Circular binds the revenue.

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.

Sd/- (S.G.PANDIT) JUDGE

Sd/- (C.M. POONACHA) JUDGE

SMJ List No.: 4 Sl No.: 14

THE PR COMMISSIONER OF INCOME TAX vs. M/S FIRST ADVANTAGE GLOBAL OPERATING CENTRE PVT

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