The Joint Commissioner of Income Tax (OSD) (Exemptions), Circle-1, Bangalore V. M/s Karnataka Housing Board, Bangalore

MA 84/BANG/2020

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 6870 (ITAT-BANGALORE)
• Duration Of Justice: 3 month(s) 6 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 10-09-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2011-2012
• Appeal Filed On: 03-06-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRIYADARSHI MISHRA
• Assessee Lawyers: B R SUDHEENDRA
• Keywords: Depreciation; Tax effect
• Section: 11

Judgement Text

M.P. NO.84/BANG/2020 M/S. KARNATAKA HOUSING BOARD, BANGALORE IN THE INCOME TAX APPELLATE TRIBUNAL BBENCH: BANGALORE BEFORE SHRI B.R. BASKARAN, ACCOUNTANTMEMBER AND SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER M.P. NO.84/BANG/2020 (ARISING OUT OF ITA NO.1334/BANG/2016 ASSESSMENTYEARS:2011-12 THE JOINT COMMISSIONER OF INCOME-TAX (OSD) (EXEMPTIONS) CIRCLE-1, BENGALURU PAN NO :AAAJK0398K VS. M/S. KARNATAKA HOUSING BOARD III FLOOR, CAUVERY BHAVAN KEMPE GOWDA ROAD BENGALURU APPELLANT RESPONDENT APPELLANT BY : SHRI PRIYADARSHI MISHRA, D.R. RESPONDENT BY : SHRI B.R. SUDHEENDRA, A.R. DATE OF HEARING : 31.07.2020 DATE OF PRONOUNCEMENT : 10.09.2020 O R D E R PER B.R. BASKARAN, ACCOUNTANT MEMBER THE REVENUE HAS FILED THIS MISCELLANEOUS APPLICATIO N SUBMITTING THAT THERE IS A MISTAKE APPARENT FROM RE CORD IN THE ORDER DATED 17.9.2019 PASSED BY THE TRIBUNAL IN RES PECT OF APPEAL OF THE REVENUE REFERRED ABOVE. 2. WE HEARD THE PARTIES AND PERUSED THE RECORD. WE NOTICE THAT THE REVENUE, IN ITS APPEAL, HAD CHALLENGED THE RELI EF GRANTED BY THE LD. CIT(A) IN RESPECT OF DEPRECIATION CLAIM OF THE ASSESSEE. THE QUANTUM OF RELIEF GRANTED BY LD. CIT(A) IS RS.37.48 LAKHS. M.P. NO.84/BANG/2020 M/S. KARNATAKA HOUSING BOARD, BANGALORE PAGE 2 OF 3 3. IT IS THE CASE OF THE REVENUE THAT THE ASSESSEE S CLAIM FOR EXEMPTION U/S 11 OF THE ACT WAS REJECTED BY THE AO AND ALSO BY LD CIT(A). CONSEQUENT THERETO, THE LD CIT(A) DIRECTED THE AO TO ALLOW DEPRECIATION. BOTH THE ASSESSEE AND REVENUE HAVE F ILED APPEAL CHALLENGING THE ORDER OF LD CIT(A). IT IS SUBMITT ED THAT COMBINED TAX EFFECT INVOLVED IN THE APPEALS FILED BY THE ASS ESSEE AND REVENUE BEFORE THE TRIBUNAL WOULD BE AROUND RS.45.32 CRORES . IT WAS FURTHER SUBMITTED THAT THE ISSUE OF DEPRECIATION IS CONSEQUENTIAL AND SHALL HAVE IMPACT ON THE FINAL ASSESSMENT ORDER THAT WILL BE PASSED BY THE A.O. WHILE GIVING EFFECT TO ORDER PAS SED BY ITAT. ACCORDINGLY, IT IS SUBMITTED THAT THE APPEAL OF THE REVENUE SHOULD NOT HAVE BEEN DISMISSED ON MONETARY LIMITS. ACCORD INGLY, IT IS PRAYED THAT THE ORDER DATED 17.9.2019 PASSED BY THE TRIBUNAL IN RESPECT OF APPEAL OF THE REVENUE BE RECALLED. 4. THE FACT REMAINS THAT THE QUANTUM IN DISPUTE IN THE APPEAL OF THE REVENUE IS RS.37.48 LAKHS RELATING TO DEPRECIAT ION CLAIM OF THE ASSESSEE. THE TAX EFFECT INVOLVED IN RESPECT OF TH E AMOUNT IS LESS THAN RS.50 LAKHS. HENCE, THE REVENUE IS PRECLUDED FROM PURSUING THIS APPEAL AS PER CBDT CIRCULAR NO.17/2019 DATED 8 .8.2019. BEFORE US, IT WAS NOT SHOWN THAT THE ABOVE SAID CLA IM OF THE REVENUE IS INCLUDED IN THE EXCEPTIONS PROVIDED IN T HE CIRCULAR OF CBDT, REFERRED ABOVE. WE NOTICE THAT THE TRIBUNAL HAS PROPERLY APPRECIATED THE ABOVE SAID FACTS AND FOLLOWED THE C IRCULAR AND ACCORDINGLY, DISMISSED THE APPEAL OF THE REVENUE. HENCE, WE DO NOT FIND ANY MISTAKE APPARENT FROM RECORD IN THE ORDER PASSED BY THE TRIBUNAL. HENCE, WE DO NOT FIND MERIT IN THE PRAYE R OF THE REVENUE. M.P. NO.84/BANG/2020 M/S. KARNATAKA HOUSING BOARD, BANGALORE PAGE 3 OF 3 5. IN THE RESULT, THE MISCELLANEOUS APPLICATION FIL ED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 10 TH SEPT2020 SD/- (PAVAN KUMAR GADALE ) JUDICIAL MEMBER SD/- (B.R. BASKARAN) ACCOUNTANT MEMBER BANGALORE, DATED 10 TH SEPT, 2020. VG/SPS COPY TO: 1. THE APPLICANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASST. REGISTRAR, ITAT, BANGALORE.