COMMISSIONER OF INCOME TAX - III vs. M/S MYSORE MINERALS LTD

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ITA/201/2013HC KarnatakaKAHC01021631201326 August 2020Bench: ALOK ARADHE,H.T. NARENDRA PRASAD4 pages
AI SummaryDismissed

What did the High Court hold?

The High Court found the first substantial question of law to be academic due to subsequent events. The second substantial question of law was decided against the revenue by a previous High Court order.

What were the facts?

The Revenue appealed against an ITAT order concerning AY 2007-08. The appeal raised questions about the admissibility of additional claims not made in the original return and the deletion of additions based on the difference between book sale price and market price.

What were the issues?

Whether the Tribunal can consider additional claims not made in the original return, and whether additions based on market price differences are valid when supported by benchmark rates.

Which sections of the Income-tax Act were involved?

Section 260-A,Section 139(5),Section 139(1)

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KARNATAKA AT BENGALURU

DATED THIS THE 26TH DAY OF AUGUST 2020

PRESENT

THE HON’BLE MR. JUSTICE ALOK ARADHE

AND

THE HON’BLE MR. JUSTICE H.T.NARENDRA PRASAD

I.T.A. NO.201 OF 2013

BETWEEN:

1.

COMMISSIONER OF INCOME TAX-III

C.R. BUILDING, QUEENS ROAD

BANGALORE.

2.

THE ADDITIONAL COMMISSIONER OF

INCOME TAX, RANGE-12, BANGALORE. ... APPELLANTS (BY SRI. E.I. SANMATHI, ADV.)

AND:

M/S. MYSORE MINERALS LTD., NO.39, M.G. ROAD BANGALORE-1. ... RESPONDENT (BY SRI. A. SHANKAR, SR. COUNSEL A/W SRI. M. LAVA, ADV.) - - -

THIS I.T.A. IS FILED UNDER SECTION 260-A OF I.T.ACT, 1961, ARISING OUT OF ORDER DATED 18-12-2012 PASSED IN ITA NO.955/BANG/2011 AND 971/BANG/2011, FOR THE ASSESSMENT YEAR 2007-08, PRAYING TO:

I. FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED THEREIN. II. SET ASIDE THE APPELLATE ORDER DATED 18-12-2012 PASSED BY THE ITAT, ‘A’ BENCH, BANGALORE, IN APPEAL PROCEEDINGS ITA NO.955/BANG/2011 AND 971/BANG/2011.

THIS I.T.A. COMING ON FOR HEARING, THIS DAY, ALOK ARADHE J., DELIVERED THE FOLLOWING:

JUDGMENT

Mr.E.I.Sanmathi, learned counsel for the appellant has entered appearance through video conferencing. Mr.A.Shankar, learned Senior counsel along with Mr.M.Lava, learned counsel for the assessee.

2.

This appeal under Section 260-A of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’, for short) has been preferred by the revenue. The subject matter of the appeal pertains to the Assessment year 2007-08. A Bench of this Court vide order dated 08.07.2013, had admitted the appeal on the following substantial questions of law: “1) Whether in the given facts and circumstances of the case, the Tribunal is right in law in holding that the assessee is entitled to make an additional claim that is not claimed in

the return of income and the Appellate Authority has power to consider such new claim not made in the return of income which in the assessee’s case was filed belatedly, while the clear provisions of Section 139(5) allow a revised return to be filed if the original return has been filed within the time allowed under Section 139(1)? 2) Whether in the given facts and circumstances of the case, the Tribunal is right in law in deleting the addition made on the basis of difference between the sale price recorded in the books and the prevailing market price which is also supported by the MMTC rate list, ignoring the fact that the price of Iron Ore is subject to revision on the basis of market fluctuation and the MMTC rate list is a bench mark?”

3.

When the matter was taken up today, learned counsel for the parties jointly submitted that the first substantial question of law involved in this appeal has been rendered academic in view of subsequent events and in view of order dated 13.11.2013 passed in ITA No.172/2014. It is also submitted that the second substantial question of law is covered by a decision rendered by a Bench of this Court vide order dated 22.03.2017 passed in ITA No.146/2013 and connected matters.

4.

In view of the aforesaid submissions, it is evident that the first substantial question of law, on account of subsequent developments, has been rendered academic, whereas the second substantial question of law has been answered against the revenue vide order dated 22.03.2017 passed by a Bench of this Court in ITA No.146/2013 and connected matters.

5.

For the aforementioned reasons, we do not find any merit in this appeal. The same fails and is hereby dismissed.

Sd/- JUDGE

Sd/- JUDGE

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