THE COMMISSIONER OF INCOME TAX vs. MR. IMTIAZ PASHA

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ITA/181/2015HC KarnatakaKAHC01017316201501 February 2016Bench: S.SUJATHA,N.K.PATIL6 pages
AI SummaryDismissed

What did the High Court hold?

The High Court dismissed the appeals filed by the Revenue. This was based on a CBDT Circular which stated that appeals involving amounts less than Rs. 20 Lakhs should be disposed of as not maintainable.

What were the facts?

The Revenue filed appeals against the ITAT's order deleting penalties levied under Section 158BFA(2). The appeals concerned assessment years from 1991 to 2011 for multiple assessees.

What were the issues?

Whether the Tribunal was correct in deleting the penalty under Section 158BFA(2) when undisclosed income was not disclosed and returns were filed as 'Nil'. The maintainability of the appeals based on monetary limits was also a consideration.

Which sections of the Income-tax Act were involved?

Section 158BFA(2),Section 260A

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KARNATAKA AT BENGALURU

DATED THIS THE 1ST DAY OF FEBRUARY, 2016

:PRESENT: THE HON’BLE MR.JUSTICE N.K. PATIL

AND

THE HON’BLE MRS.JUSTICE S. SUJATHA

I.T.A.NO. 180 OF 2015 C/W. I.T.A.NO. 181 OF 2015, I.T.A.NO. 182 OF 2015 AND I.T.A.NO. 183 OF 2015

I.T.A.NO. 180 OF 2015

Between:

1.

The Commissioner of Income Tax, C.R. Buildings, Queens Road, Bangalore.

2.

The Assistant Commissioner of Income Tax, Central Circle-2(2), Bangalore. …Appellants (By Sri. E.I. Sanmathi, Advocate)

And :

Mr. Mohd. Khasim, No.217/55, 11th Cross, Wilson Garden, Bangalore-27. PAN: AJQPS0787 D

…Respondent (By Sri. S. Parthasarathi & Jinita Chatterjee, Advocates) *** This ITA is filed U/s. 260A of the Income Tax Act, 1961, praying to formulate the substantial questions of law,

allow the appeal and set aside the orders passed by the Income Tax Appellate Tribunal, Bangalore ‘A’ Bench, Bangalore, in ITA No. 7/Bang/2012, dated 26/09/2014, for assessment years 1.4.1991 to 29.5.2011.

I.T.A.NO. 181 OF 2015

Between:

1.

The Commissioner of Income Tax, C.R. Buildings, Queens Road, Bangalore.

2.

The Assistant Commissioner of Income Tax, Central Circle-2(2), Bangalore. …Appellants (By Sri. E.I. Sanmathi, Advocate)

And :

Mr. Imtiaz Pasha, No.217/55, 11th Cross, Wilson Garden, Bangalore-27. PAN: ABZPP 2650 B

…Respondent (By Sri. S. Parthasarathi & Jinita Chatterjee, Advocates) *** This ITA is filed U/s. 260A of the Income Tax Act, 1961, praying to formulate the substantial questions of law, allow the appeal and set aside the orders passed by the Income Tax Appellate Tribunal, Bangalore ‘A’ Bench, Bangalore, in ITA No. 8/Bang/2012, dated 26/09/2014 for the assessment years 1.4.1991 to 29.5.2011.

I.T.A.NO. 182 OF 2015

Between:

1.

The Commissioner of Income Tax, C.R. Buildings, Queens Road,

Bangalore.

2.

The Assistant Commissioner of Income Tax, Central Circle-2(2), Bangalore. …Appellants (By Sri. E.I. Sanmathi, Advocate)

And :

Mr. Tippu Sultan, No.217/55, 11th Cross, Wilson Garden, Bangalore-27. PAN: AAACT 6198 D

…Respondent

(By Sri. S. Parthasarathi & Jinita Chatterjee, Advocates) *** This ITA is filed U/s. 260A of the Income Tax Act, 1961, praying to formulate the substantial questions of law, allow the appeal and set aside the orders passed by the Income Tax Appellate Tribunal, Bangalore ‘A’ Bench, Bangalore, in ITA No. 9/Bang/2012, dated 26/09/2014, for the assessment years 1.4.1991 to 29.5.2011.

I.T.A.NO. 183 OF 2015

Between:

1.

The Commissioner of Income Tax, C.R. Buildings, Queens Road, Bangalore.

2.

The Assistant Commissioner of Income Tax, Central Circle-2(2), Bangalore. …Appellants (By Sri. E.I. Sanmathi, Advocate)

And :

Mr. Chand Pasha,

No.217/55, 11th Cross, Wilson Garden, Bangalore-27. PAN: AGRPP 7236 J

…Respondent

(By Sri. S. Parthasarathi & Jinita Chatterjee, Advocates) *** This ITA is filed U/s. 260A of the Income Tax Act, 1961, praying to formulate the substantial questions of law, allow the appeal and set aside the orders passed by the Income Tax Appellate Tribunal, Bangalore ‘A’ Bench, Bangalore, in ITA No. 10/Bang/2012, dated 26/09/2014, for the assessment years 1.4.1991 to 29.5.2011.

These ITAs coming on for Admission, this day, N.K.PATIL J., delivered the following: :J U D G M E N T:

These appeals by the Revenue are arising out of the impugned common order dated 26/09/2014, passed in ITA Nos.7/Bang/2012, 8/Bang/2012, 9/Bang/2012 & 10/Bang/2012, respectively by the Income Tax Appellate Tribunal, Bangalore Bench-A, Bangalore, for considering the following substantial questions of law: (i) Whether, on the facts and in the circumstances of the case, the Tribunal is right in law in deleting the penalty levied under the section 158BFA(2) of the Act even when the assessee has failed to disclose

undisclosed income in the return, instead filed the ‘Nil’ returns and the additions made in the assessment orders are confirmed by the CIT, ITAT and this Hon’ble High Court?

(ii) Whether, on the facts and in the circumstances of the case, the Tribunal is right in law in deleting the penalty levied under section 158BFA (2) just because the assessment was made on protective basis by the assessing officer to avoid double taxation and even when all the ingredients of the said section are satisfied in the case of the assessee?

2.

We have heard the learned counsel appearing for appellants in these appeals. 3. During the course of submission, learned counsel appearing for appellants submitted, that in the light of the Circular dated 10th December 2015 bearing No.21/2015 issued by the Central Board of Direct Taxes, since the subject matter involved in these appeals are less than Rs.20/- Lakhs, these appeals may be disposed of as not maintainable.

4.

The above submission made by learned counsel for the appellants is placed on record. 5. In view of the submission made by learned counsel appearing for appellants and in the light of the Circular dated 10th December 2015 bearing No.21/2015, issued by the Central Board of Direct Taxes, these appeals filed by the appellants are dismissed as not maintainable. Ordered accordingly. Learned counsel Sri. S.Parthasarathi, is permitted to file vakalath for respondent in I.T.A.No.183/2015 within four weeks from today. SD/- JUDGE

SD/-

JUDGE tsn*

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