THE COMMISSIONER OF INCOME TAX vs. MR. TIPPU SULTAN

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:

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:

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:

Bangalore.

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:

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?

SD/-

JUDGE tsn*