PR COMMISSIONER OF INCOME TAX CENTRAL V. M/S PARESH EXPORTS P LTD

ITA/515/2017

AI Insights

The case involves an appeal by the revenue against the judgment of the Income Tax Appellate Tribunal, which pertained to the Assessment Year 2005-06. The main issues in the appeal were related to the deletion of additions concerning unaccounted interest income on fixed deposits, unaccounted income in gold, and unaccounted cash found during search proceedings. The High Court found the Tribunal's earlier decision to be cryptic and lacking in reasoning, leading to the remittance of the case back to the Tribunal to address the substantial questions of law afresh.

• Counselvise Citation: [2021] 140 COUNSELVISE.COM (IT) 728419 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 28-05-2021
• Assessment Year: misc
• Other Referred Cases: ITA No.514/2017
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Assessee Lawyers: JEEVAN NEERALGI
• Keywords: Income tax appellate tribunal; Search proceedings; Unaccounted cash; Unaccounted interest income; Unaccounted income in gold
• Section: 69A; 260-A

Judgement Text

"1 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 28TH DAY OF MAY 2021 PRESENT THE HON’BLE MR. JUSTICE ALOK ARADHE AND THE HON’BLE MR.JUSTICE HEMANT CHANDANGOUDAR I.T.A. NO.515 OF 2017 BETWEEN: 1. PR. COMMISSIONER OF INCOME TAX (CENTRAL), C.R. BUILDING QUEENS ROAD, BENGALURU-560001. 2. THE DY. COMMISSIONER OF INCOME TAX CENTRAL CIRCLE-1(4), BENGALURU. ... APPELLANTS (BY SRI. JEEVAN J. NEERALGI, AGA) AND: M/S. PARESH EXPORTS (P) LTD., NO.104, 1ST FLOOR, 56TH CENTRE POINT RESIDENCY ROAD BENGALURU-560025 PAN:AAACP8236G. ... RESPONDENT (V/O DTD:24.03.2021 SERVICE OF NOTICE TO RESPONDENT HELD SUFFICIENT) 2 THIS I.T.A. IS FILED UNDER SECTION 260-A OF I.T.ACT, 1961 ARISING OUT OF ORDER DATED 09.12.2016 PASSED IN ITA NO.252/BANG/2013, FOR THE ASSESSMENT YEAR 2005-06, PRAYING TO 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 09.12.2016 PASSED BY THE INCOME TAX APPELLATE TRIBUNAL, 'C' BENCH, BENGALURU, AS SOUGHT FOR, IN THE RESPONDENT-ASSESSEE'S CASE, IN APPEAL PROCEEDINGS IN ITA NO.252/BANG/2013 FOR A.Y. 2005-06 & GRANT SUCH OTHER RELIEF AS DEEMED FIT, IN THE INTEREST OF JUSTICE. THIS I.T.A. COMING ON FOR ADMISSION, THIS DAY, ALOK ARADHE J., DELIVERED THE FOLLOWING: JUDGMENT This appeal under Section 260-A of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’, for short) has been filed by the revenue against the judgment dated 09.12.2016 passed by the Income Tax Appellate Tribunal. The subject matter of the appeal pertains to the Assessment Year 2005-06. The appeal is admitted by a Bench of this Court vide order dated 28.05.2021 on the following substantial questions of law: \"(1) Whether on the facts and in the circumstances of the case, the Tribunal is right in law in deleting the addition of Rs.6,00,13,928/- 3 on account of unaccounted interest income on FDs by holding that the Revenue has not brought any material to make such addition as held by CIT(A) even when the assessee has admitted only Rs.4,39,97,515/- in the return of income and CIT(A) without proper discussion has held that Rs.29,45,468/- is taxable? (2) Whether on the facts and in the circumstances of the case, the Tribunal is right in law in deleting the unaccounted income in gold without appreciating that the assessee has failed to prove the source for the said purchases of gold and failed to give independent reasonings for setting aside the additions? (3) Whether on the facts and in the circumstances of the case, the Tribunal is right in law in setting aside the addition under section 69A of the Act on account of unaccounted cash found during the search proceedings by holding that the Revenue has not brought any material to make such addition when the assessee could not explain the details of the cash found in the search proceedings and in the appellate proceedings?\" 2. This Court, vide judgment dated 17.11.2020 passed in ITA No.514/2017, quashed the order passed by the Income Tax Appellate Tribunal on the ground that the same 4 is cryptic and suffers from non-application of mind and has remitted the same to the Tribunal to consider the substantial question of law Nos.1 and 2. 3. For the reasons assigned in the aforesaid judgment, the order dated 09.12.2016 passed by the Tribunal in ITA No.252/Bang/2013 in respect of Assessment Year 2005-06 is quashed and the matter is remitted to the Tribunal to consider the substantial question of law Nos.1 and 2 afresh by assigning reasons. Since the matter has been remitted to the Tribunal for decision afresh, it is not necessary for us to answer the substantial questions of law framed in this appeal. Accordingly, the appeal is disposed of. Sd/- JUDGE Sd/- JUDGE RV "