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NC: 2024:KHC:40523-DB ITA No. 380 of 2023
IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 26TH 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. 380 OF 2023 BETWEEN:
THE PR. COMMISSIONER OF INCOME-TAX, CENTRAL, 3RD FLOOR, C.R. BUILDING, QUEEN'S ROAD, BENGALURU-560 001.
THE DEPUTY COMMISSIONER OF INCOME-TAX, CIRCLE- 6(1)(1), PRESENT ADDRESS DCIT, CENTRAL CIRCLE -2(2), 3RD FLOOR, C.R. BUILDING, QUEEN'S ROAD, BENGALURU-560 001. …APPELLANTS (BY SRI. DILIP M., A/W SRI. RAVIRAJ Y.V., ADVOCATES) AND:
M/S. SHYAMARAJU AND COMPANY (INDIA) PVT. LTD., DIVYASREE CHAMBERS, 'A' WING, NO.11, 'O' SHAUGNESSY ROAD, BENGALURU-560 025. …RESPONDENT (BY SRI. AVINASH MALLYA U., ADVOCATE)
THIS ITA / INCOME TAX APPEAL IS FILED UNDER SEC.260-A OF INCOME TAX ACT 1961, PRAYING TO FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED ABOVE AND ETC.
Digitally signed by B LAVANYA Location: HIGH COURT OF KARNATAKA
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NC: 2024:KHC:40523-DB ITA No. 380 of 2023
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., along with Sri. Raviraj.Y.V., learned counsel for appellants/Revenue and Sri. Avinash Mallya.U., learned counsel for the 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 26.04.2022 passed by the Income Tax Appellate Tribunal, ‘A’ Bench, Bengaluru (for short, ‘Appellate Authority’) in ITA.No.2142/Bang/2018 for the assessment year 2012-13.
This Court, admitted the appeal on 24.01.2024 to consider the following substantial questions of law:
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NC: 2024:KHC:40523-DB ITA No. 380 of 2023
"1. Whether on the facts and circumstances of the case, the Tribunal is right in law in not adjudicating the issue of disallowance made by assessing authority under section 14A of the Act, the disallowance being deleted by CIT(A) in-spite of specific ground urged by Revenue in its appeal?
Whether on the facts and circumstances of the case, the Tribunal is right in law in directing the assessing authority setting to recomputed the disallowance for making addition under clause (f) of Section 115JB(1) independently of disallowance computed as per Section 14A of the Act when the same is not warranted as per provisions of the Act?
Whether on the facts and circumstances of the case, the Tribunal’s order can be said as perverse in nature as Tribunal failed to appreciate the reasons recorded by assessing authority for making additions?”
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 issued by the Central Board of Direct
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NC: 2024:KHC:40523-DB ITA No. 380 of 2023
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.: 3 Sl No.: 19