COMMISSIONER OF INCOME TAX (EXEMPTIONS) vs. M/S INDIA HERITAGE FOUNDATION

PDF · subscribers
ITA/303/2016HC KarnatakaKAHC01025218201618 August 2020Bench: ALOK ARADHE,H.T. NARENDRA PRASAD4 pages
AI SummaryRemanded

What did the High Court hold?

The High Court held that the ITAT order was incorrect. The substantial question of law was answered in favour of the revenue, leading to the quashing of the ITAT, CIT(A), and Assessing Officer's orders.

What were the facts?

The Revenue appealed against an ITAT order concerning Assessment Year 2009-10. The core issue was whether an Assessing Officer's order became infructuous because a Section 263 order was no longer in existence, even though the Assessing Officer's order followed the directions of the Commissioner.

What were the issues?

Whether an Assessing Officer's order becomes infructuous if a Section 263 order is no longer in existence, despite the Assessing Officer following the Commissioner's directions.

Which sections of the Income-tax Act were involved?

Section 260A,Section 263,Section 80IB(10)

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KARNATAKA AT BENGALURU

DATED THIS THE 18TH 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.303 OF 2016 BETWEEN:

1.

COMMISSIONER OF INCOME TAX (EXEMPTIONS)

UNITY BUILDING ANNEXE

MISSION ROAD, BANGALORE-560027.

2.

DEPUTY DIRECTOR OF INCOME TAX (E)

CIRCLE 17(1), BANGALORE-27. ... APPELLANTS (By Sri. E.I. SANMATHI, ADV.,)

AND:

M/S. INDIA HERITAGE FOUNDATION GOKULAM COMPLEX 8TH MILE, KANAKAPURA ROAD BANGALORE-560062 PAN:AAAT14481AM. ... RESPONDENT (By Ms. VANI H, ADV.) - - -

THIS ITA IS FILED UNDER SECTION 260-A OF I.T. ACT, 1961 ARISING OUT OF ORDER DATED 30.11.2015 PASSED IN ITA NO.363/BANG/2014 FOR THE ASSESSMENT YEAR 2009-10, PRAYING TO:

(I) DECIDE THE FOREGOING QUESTION OF LAW AND/OR SUCH OTHER QUESTIONS OF LAW AS MAY BE FORMULATED BY THE HON’BLE COURT AS DEEMED FIT AND SET ASIDE THE APPELLATE ORDER DATED 30-11-2015 PASSED BY THE ITAT, ‘B’ BENCH, BENGALURU, AS SOUGHT FOR IN THE RESPONDENT- ASSESSEE’S CASE, IN APPEAL PROCEEDINGS IN ITA NO.363/BANG/2014 FOR A.Y.2009-10 AND GRANT SUCH OTHER RELIEF AS DEEMED FIT IN THE INTEREST OF JUSTICE & ETC.

THIS ITA COMING ON FOR HEARING, THIS DAY, ALOK ARADHE J., DELIVERED THE FOLLOWING:

JUDGMENT

This appeal under Section 260A 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 2009-10. The appeal was admitted by a bench of this Court vide order dated 10.10.2017 on the following substantial question of law:

Whether on the facts and in the circumstances of the case, the Tribunal was right in law in holding that as the 263 order was no more in existence, the consequential order passed by the assessing authority is

infructuous even though the order passed by the assessing authority is in accordance with the directions issued by the Commissioner of Income Tax under Section 263 of the Act and when the said 263 order is subject matter before this Hon’ble High Court in ITA No.382/2012?

2.

By a separate order passed today, we have decided I.T.A.No.382/2012. For the reasons assigned in the aforesaid order, the substantial question of law is answered in favour of the revenue and against the assessee. In the result, the order dated 30.11.2015 passed by the Income Tax Appellate Tribunal is quashed as well as the order dated 29.10.2013 passed by the Commissioner of Income Tax (Appeals) and the order dated 14.03.2012 passed by the Assessing Officer are quashed and the matter is remitted to the Assessing Officer to deal with the claim of the assessee under Section 80IB(10) of the Act.

Accordingly, the appeal is disposed of.

Sd/- JUDGE

Sd/- JUDGE ss

More judgments on Section 263

All 13,616 judgments and leading authorities on Section 263 →

Recent GST High Court judgments

Search GST case law →