The Prl. Commissioner of Income Tax Central vs. M/S CONDOR DEVELOPERS PVT LTD

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ITA/353/2023HC KarnatakaKAHC01025273202326 September 2024Bench: S.G.PANDIT,C.M. POONACHA4 pages
AI SummaryRemanded

What did the High Court hold?

The High Court disposed of the appeal, granting the Revenue liberty to revive it if the matter falls within the exceptions of the CBDT circulars. The substantial questions of law were kept open for future adjudication.

What were the facts?

The Revenue appealed against an ITAT order that set aside the matter to the CIT(A) for further inquiry regarding forfeited amounts. The assessee argued that the appeal should not be entertained due to a low tax effect, citing CBDT circulars.

What were the issues?

Whether the Tribunal was correct in remanding the matter for further inquiry when the assessee had admitted forfeiture, and whether the appeal should be entertained given the tax effect and CBDT circulars.

Which sections of the Income-tax Act were involved?

Section 260-A,Section 56(2)(ix)

AI-generated summary — verify with the full judgment below

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NC: 2024:KHC:40546-DB ITA No. 353 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. 353 OF 2023 BETWEEN:

1.

THE PRL. COMMISSIONER OF INCOME-TAX CENTRAL, 3RD FLOOR, C R BUILDING, QUEENS ROAD, BANGALORE-560 001.

2.

THE DEPUTY COMMISSIONER OF INCOME-TAX CENTRAL CIRCLE-1(1), 3RD FLOOR, C.R.BUILDING, QUEENS ROAD, BENGALURU-560 001.

…APPELLANTS (BY SRI. DILIP.M., ADVOCATE FOR SRI. RAVIRAJ.Y.V., ADVOCATE)

AND:

M/S. CONDOR DEVELOPERS PVT.LTD., NO.40, OLD KANAKPURA MAIN ROAD, BASVANGUDI, BENGALURU – 560 004. PAN. AABCH 6554Q. …RESPONDENT

(BY SRI.BALRAM R.RAO, ADVOCATE)

Digitally signed by BHARATHI S Location: HIGH COURT OF KARNATAKA

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NC: 2024:KHC:40546-DB ITA No. 353 of 2023

THIS APPEAL IS FILED UNDER SECTION 260-A OF INCOME TAX ACT, 1961, PRAYING TO ALLOW THE APPEAL AND SET-ASIDE THE ORDERS PASSED BY THE INCOME-TAX APPELLATE TRIBUNAL, BENGALURU, IN ITA NO.1020/BANG/2022 DATED 03.02.2023 FOR ASSESSMENT YEAR 2018-2019 (ANNEXURE-C) AND ETC.,

THIS APPEAL IS 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 ORDER (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. Balram.R.Rao, 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 03.02.2023 passed by the Income Tax Appellate Tribunal,

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NC: 2024:KHC:40546-DB ITA No. 353 of 2023

‘A’ Bench, Bengaluru (for short, ‘Appellate Authority’) in ITA.No.1020/Bang/2022 for the assessment year 2018-19.

3.

This

Court,

admitted the appeal on 05.12.2023 to consider the following substantial questions of law: 1. "Whether on the facts and circumstances of the case, the Tribunal is right in law in setting aside the matter back to file of CIT(A) with a direction to enquire with the partners, M/s.Sobha Developers Ltd and M/s.Elyon Developers (P)) Ltd when such enquiries are irrelevant as the assesse had itself admitted that it had forfeited the amount in his statement and ignoring the findings of the assessing authority"?

2.

"Whether on the facts and circumstances of the case, the Tribunal is right in law in remanding the matter to assessing authority in relation to issue pertaining to forfeiture of advance as per provisions of Section 56(2)(ix) of the Act ignoring that assessing authority had made addition on basis of materials on record and facts of the case"?

4.

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

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NC: 2024:KHC:40546-DB ITA No. 353 of 2023

instance of the revenue in view of the Circular No.09/2024 dated 17.09.2024 issued by the Central Board of Direct Taxes. It is also submitted that the aforesaid Circular binds the revenue.

5.

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.

6.

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.: 16

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