THE COMMISSIONER OF INCOME TAX vs. M/S SRIRAM CHITS (BANGALORE) PVT LTD

1 IN THE HIGH COURT OF KARNATAKA, BANGALORE DATED THIS THE 23RD DAY OF JULY, 2012 PRESENT THE HON'BLE MR. JUSTICE K.SREEDHAR RAO AND THE HON'BLE MR. JUSTICE B.MANOHAR I.T.A. No. 1234 OF 2006 C/W. I.T.A.No.1235 OF 2006 I.T.A. No. 1234 OF 2006:- BETWEEN:- 1. The Commissioner of Income Tax, C.R. Building, Attavara, Mangalore. 2. The Assistant Commissioner of Income Tax, Circle- 12(2), C.R. Building, Queens Road, Bangalore. Appellants (By Sri M. Thirumalesh, Advocate) AND:- M/s. Sriram Chits (Bangalore) Pvt. Ltd., Askshodaya, I Floor, # 259/31, 10th Cross, Wilson Garden, Bangalore-27. Respondent (By Sri K.S. Ramabadram, Advocate)

2 This I.T.A. is filed u/s.260-A of I.T. Act, 1961 arising out of order dated 29.03.2006 passed in ITA No.944/Bang/2003 for the Assessment Year 2000-01, praying that this Hon’ble Court may be pleased to: (i) formulate the substantial questions of law stated therein and (ii) allow the appeal and set aside the order passed by the ITAT in ITA No.944/Bang/2003 dated 29.03.2006 and confirm the order passed by the Asst. Commissioner of Income Tax, Circle-12(2), Bangalore in the interest of justice and equity. I.T.A. No. 1235 OF 2006:- BETWEEN:- 1. The Commissioner of Income Tax, C.R. Building, Attavara, Mangalore. 2. The Assistant Commissioner of Income Tax, Circle- 12(2), C.R. Building, Queens Road, Bangalore. Appellants (By Sri M. Thirumalesh, Advocate) AND:- M/s. Sriram Chits (Bangalore) Pvt. Ltd., Askshodaya, I Floor, # 259/31, 10th Cross, Wilson Garden, Bangalore-27. Respondent (By Smt. Vani H, Advocate)

3 This I.T.A. is filed u/s.260-A of I.T. Act, 1961 arising out of order dated 29.03.2006 passed in ITA No.943/Bang/2003 for the Assessment Year 1999-00, praying that this Hon’ble Court may be pleased to: (i) formulate the substantial questions of law stated therein and (ii) allow the appeal and set aside the order passed by the ITAT in ITA No.943/Bang/2003 dated 29.03.2006 and confirm the order passed by the Asst. Commissioner of Income Tax, Circle-12(2), Bangalore in the interest of justice and equity. These appeals are coming on for hearing this day, SREEDHAR RAO, J., delivered the following: J U D G M E N T The facts and questions of law involved in these appeals are similar to one involved in ITA No.409 of 2004 decided on 17.11.2009 before this Court. In the cited case and in the present cases, the parties are same. The present appeals pertain to different assessment years. This Court in the judgment rendered in ITA No.409/2004 at paras 11 and 12 made the following observations: “11. Having heard the counsel for the parties, we are of the view that without considering the substantial questions of law raised in this appeal, the provisions of Section 145(1)(2) of the Act and in the light of the notification dated 25.1.1996, the Assessing Officer had not considered the effect of the same, all the orders passed by the Income Tax Appellate Tribunal, the order passed by the

4 Commissioner of Income Tax (Appeals) and so also the order of the Assessing Officer are to be set aside and the matter has to be reconsidered by the Assessing Officer in the light of provisions of Section 145(1)(2) of the Act. 12. In the result, this appeal is allowed. All the orders are set aside without answering the substantial questions of law framed in this appeal. The matter is remanded to the Assessing Officer to consider the case of the assessee in view of Section 145(1)(2) of the Act. It is open to the assessee to raise all the contentions that are open to him before the Assessing Officer including the contentions now urged before us.” and remanded the matter to the Assessment Officer for fresh assessment. In these cases also, similar order has to be passed. Accordingly, the appeals are partly allowed and the matters are remitted to the Assessment Officer to dispose of the same in accordance with law. Sd/- JUDGE Sd/- JUDGE NM*