THE COMMISSIONER OF INCOME TAX V. SRI B SHANKAR RAO

ITA/716/2008

AI Insights

This case involves multiple income tax appeals filed by the Commissioner of Income-Tax and the Assistant Commissioner of Income-Tax against various respondents, including the legal heirs of Sri B. Shankar Rao, concerning block assessments for the period from April 1, 1987, to August 28, 1997. The primary legal issue was whether the assessments were barred by limitation. The Income Tax Appellate Tribunal (ITAT) had previously ruled that the assessments were indeed barred by limitation, a decision challenged by the Revenue in these appeals. The High Court of Karnataka, referencing a similar case (C.Ramaiah Reddy), upheld the ITAT's decision, dismissing the appeals and affirming the limitation on the assessments.

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 701659 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 26-08-2014
• Assessment Year: misc
• Other Referred Cases: C.Ramaiah Reddy Vs. Assistant Commissioner of Income Tax (IMV), Smt.Jyothi Kumari Vs. Assistant Commissioner of Income Tax
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: A SHANKAR; M LAVA
• Assessee Lawyers: JEEVAN NEERALGI
• Keywords: Block assessment; Income tax appeal; Limitation; Substantial questions of law
• Section: 260-A

Judgement Text

" - 1 - IN THE HIGH COURT OF KARNATAKA AT BANGALORE DATED THIS THE 26TH DAY OF AUGUST, 2014 PRESENT THE HON’BLE MR.JUSTICE N.KUMAR AND THE HON’BLE MRS.JUSTICE RATHNAKALA ITA NO.716 OF 2008 C/W ITA NO.712 OF 2008 ITA NO.713 OF 2008 ITA NO.714 OF 2008 ITA NO.715 OF 2008 ITA CROB NO.1/2010 IN ITA NO.712/2008 ITA CROB NO.2/2010 IN ITA NO.713/2008 ITA CROB NO.3/2010 IN ITA NO.714/2008 ITA CROB NO.4/2010 IN ITA NO.715/2008 ITA CROB NO.9/2010 IN ITA NO.716/2008 I.T.A NO.716/2008 BETWEEN: 1. THE COMMISSIONER OF INCOME-TAX, 284/1, PARK VIEW BUILDING, 4TH MAIN, P.J.EXTENSION, DAVANGERE-2. 2. THE ASST. COMMISSIONER OF INCOME-TAX (INV.), CIRCLE – 1(1), HUBLI. …APPELLANTS (BY SRI JEEVAN J.NEERALGI, ADV.) - 2 - AND: SRI B.SHANKAR RAO, 181, ‘A’ BLOCK, ‘A’ BLOCK, “DURGA NIVAS”, 10TH CROSS, DEVARAJ URS LAYOUT, DAVANGERE. SINCE DEAD BY HIS LRS: A. SMT.VIMALA BAI W/O SRI B.S.SHANKAR RAO, AGED ABOUT 62 YEARS, #673, B N B TRADING COMPANY, CHOWKIPET, DAVANAGERE. B. SRI M.S.RAMESH, S/O SRI B.S.SHANKAR RAO, AGED ABOUT 47 YEARS, #673/1, B N B TRADING COMPANY, CHOWKIPET, DAVANAGERE. C. SRI B.S.ASHOK KUMAR S/O SRI B.S.SHANKAR RAO, AGED ABOUT 38 YEARS, #673, B N B TRADING COMPANY, CHOWKIPET, DAVANAGERE. D. SRI B.S.ARUN KUMAR S/O SRI B.S.SHANKAR RAO, AGED ABOUT 38 YEARS, #673, B N B TRADING COMPANY, CHOWKIPET, DAVANAGERE. E. SRI B.S.PRAVEEN KUMAR S/O SRI B.S.SHANKAR RAO, AGED ABOUT 30 YEARS, #673/1, B N B TRADING COMPANY, CHOWKIPET, DAVANAGERE. - 3 - F. SMT.ARCHANA G.NAVALE D/O SRI B.S.SHANKAR RAO, AGED ABOUT 40 YEARS, #3112, MCC ‘B’ BLOCK, 3RD MAIN, 10TH CROSS, DAVANAGERE. G. SMT.POORNIMA, D/O SRI B.S.SHANKAR RAO, AGED ABOUT 37 YEARS, BEEJALI BANGLA, JIDHE NAGAR, BIBWEWADI PUNE. ...RESPONDENTS (BY SRI. A.SHANKAR AND SRI LAVA, ADVS.) THIS INCOME TAX APPEAL IS FILED UNDER SECTION 260-A OF I.T. ACT, 1961 ARISING OUT OF ORDER DATED 31-01-2008 VIDE ANNEXURE – A PASSED IN IT(SS)A NO.112/BNG/2002, FOR THE ASSESSMENT YEAR BLOCK PERIOD 1/4/1987 TO 28/8/1997, PRAYING THAT THIS HON'BLE COURT MAY BE PLEASED TO: I. FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED THEREIN, II. ALLOW THE APPEAL AND SET ASIDE THE ORDER PASSED BY THE ITAT BANGALORE IN IT(SS)A NO. 112/BNG/2002, DATED 31-01-2008 CONFIRM THE ORDERS OF THE ASSESSING OFFICER. I.T.A NO.712/2008 BETWEEN: 1. THE COMMISSIONER OF INCOME-TAX, 284/1, PARK VIEW BUILDING, 4TH MAIN, P.J.EXTENSION, - 4 - DAVANGERE-2. 2. THE ASST. COMMISSIONER OF INCOME-TAX (INV.), CIRCLE – 1(1), HUBLI. …APPELLANTS (BY SRI JEEVAN J.NEERALGI, ADV.) AND: SRI B.S. ASHOK KUMAR, 18, DURGA NIVAS, DEVARAJ URS LAYOUT, DAVANGERE. …RESPONDENT (BY SRI A.SHANKAR AND M.LAVA, ADVS.) THIS INCOME TAX APPEAL IS FILED UNDER SECTION 260-A OF I.T. ACT, 1961 ARISING OUT OF ORDER DATED 31-01-2008 PASSED IN IT(SS)A NO.107/BNG/2002, FOR THE ASSESSMENT YEAR BLOCK PERIOD 1/4/1987 TO 28/8/1997, PRAYING THAT THIS HON'BLE COURT MAY BE PLEASED TO: I. FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED THEREIN, II. ALLOW THE APPEAL AND SET ASIDE THE ORDER PASSED BY THE ITAT BANGALORE IN IT(SS)A NO. 107/BNG/2002, DATED 31-01-2008 VIDE ANNEXURE – A CONFIRM THE ORDERS OF THE ASSESSING OFFICER. I.T.A NO.713/2008 BETWEEN: 1. THE COMMISSIONER OF INCOME-TAX, 284/1, PARK VIEW BUILDING, - 5 - 4TH MAIN, P.J.EXTENSION, DAVANGERE-2. 2. THE ASST. COMMISSIONER OF INCOME-TAX (INV.), CIRCLE – 1(1), HUBLI. …APPELLANTS (BY SRI JEEVAN J.NEERALGI, ADV.) AND: SMT. VIMALA BAI, 18, ‘A’ BLOCK, ‘A’ BLOCK, “DURGA NIVAS”, 10TH CROSS, DEVARAJ URS LAYOUT, DAVANGERE. …RESPONDENT (BY SRI A.SHANKAR AND M.LAVA, ADVS.) THIS INCOME TAX APPEAL IS FILED UNDER SECTION 260-A OF I.T. ACT, 1961 ARISING OUT OF ORDER DATED 31-01-2008 VIDE ANNEXURE – A PASSED IN IT(SS)A NO.108/BNG/2002, FOR THE ASSESSMENT YEAR BLOCK PERIOD 1/4/1987 TO 28/8/1997, PRAYING THAT THIS HON'BLE COURT MAY BE PLEASED TO: I. FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED THEREIN, II. ALLOW THE APPEAL AND SET ASIDE THE ORDER PASSED BY THE ITAT BANGALORE IN IT(SS)A NO. 108/BNG/2002, DATED 31-01-2008 VIDE ANNEXURE – A CONFIRM THE ORDERS OF THE ASSESSING OFFICER. I.T.A NO.714/2008 BETWEEN: 1. THE COMMISSIONER OF INCOME-TAX, - 6 - 284/1, PARK VIEW BUILDING, 4TH MAIN, P.J.EXTENSION, DAVANGERE-2. 2. THE ASST. COMMISSIONER OF INCOME-TAX (INV.), CIRCLE – 1(1), HUBLI. …APPELLANTS (BY SRI JEEVAN J.NEERALGI, ADV.) AND: SRI B.S.ARUN KUMAR, M/S. B.N.B. TRADING CO., 73/1, CHOWKIPET, DAVANGERE. …RESPONDENT (BY SRI A.SHANKAR AND M.LAVA, ADVS.) THIS INCOME TAX APPEAL IS FILED UNDER SECTION 260-A OF I.T. ACT, 1961 ARISING OUT OF ORDER DATED 31-01-2008 PASSED IN IT(SS)A NO.109/BNG/2002, FOR THE ASSESSMENT YEAR BLOCK ASSESSMENT 1/4/1987 TO 28/8/1997, PRAYING THAT THIS HON'BLE COURT MAY BE PLEASED TO: I. FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED THEREIN, II. ALLOW THE APPEAL AND SET ASIDE THE ORDER PASSED BY THE ITAT BANGALORE IN IT(SS)A NO. 109/BNG/2002, DATED 31-01-2008 VIDE ANNEXURE – A CONFIRM THE ORDERS OF THE ASSESSING OFFICER. I.T.A NO.715/2008 BETWEEN: 1. THE COMMISSIONER OF INCOME-TAX, - 7 - 284/1, PARK VIEW BUILDING, 4TH MAIN, P.J.EXTENSION, DAVANGERE-2. 2. THE ASST. COMMISSIONER OF INCOME-TAX (INV.), CIRCLE – 1(1), HUBLI. …APPELLANTS (BY SRI JEEVAN J.NEERALGI, ADV.) AND: SRI B.S.RAMESH, 181, ‘A’ BLOCK, “DURGA NIVAS”, 10TH CROSS, DEVARAJ URS LAYOUT, DAVANGERE. …RESPONDENT (BY SRI A.SHANKAR AND M.LAVA, ADVS.) THIS INCOME TAX APPEAL IS FILED UNDER SECTION 260-A OF I.T. ACT, 1961 ARISING OUT OF ORDER DATED 31-01-2008 PASSED IN IT(SS)A NO.111/BNG/2002, FOR THE ASSESSMENT YEAR BLOCK PERIOD 1/4/1987 TO 28/8/1997, PRAYING THAT THIS HON'BLE COURT MAY BE PLEASED TO: I. FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED THEREIN, II. ALLOW THE APPEAL AND SET ASIDE THE ORDER PASSED BY THE ITAT BANGALORE IN IT(SS)A NO. 111/BNG/2002, DATED 31-01-2008 VIDE ANNEXURE – A CONFIRM THE ORDERS OF THE ASSESSING OFFICER. I.T.A CROB NO.01/2010 IN I.T.A NO.712/2008 - 8 - BETWEEN: SRI B.S.ASHOK KUMAR NO.181, DURGA NIVAS, DEVARAJ URS LAYOUT, DAVANGERE – 577 001. …CROSS OBJECTOR (BY SRI A.SHANKAR AND SRI M.LAVA, ADVS.) AND: 1. THE COMMISSIONER OF INCOME-TAX, 284/1, PARK VIEW BUILDING, 4TH MAIN, P.J.EXTENSION, DAVANGERE-577 002. 2. THE ASSISTANT COMMISSIONER OF INCOME-TAX (INV.), CIRCLE – 1(1), NAVANAGAR, HUBLI – 580 025. …RESPONDENTS I.T.A CROB NO.02/2010 IN I.T.A NO.713/2008 BETWEEN: SMT. VIMALA BAI NO.181, DURGA NIVAS, DEVARAJ URS LAYOUT, DAVANGERE – 577 001. …CROSS OBJECTOR (BY SRI A.SHANKAR AND SRI M.LAVA, ADVS.) AND: 1. THE COMMISSIONER OF INCOME-TAX, 284/1, PARK VIEW BUILDING, - 9 - 4TH MAIN, P.J.EXTENSION, DAVANGERE-577 002. 2. THE ASSISTANT COMMISSIONER OF INCOME-TAX (INV.), CIRCLE – 1(1), NAVANAGAR, HUBLI – 580 025. …RESPONDENTS I.T.A CROB NO.03/2010 IN I.T.A NO.714/2008 BETWEEN: SRI B.S.ARUN KUMAR, NO.181, DURGA NIVAS, DEVARAJ URS LAYOUT, DAVANGERE – 577 001. …CROSS OBJECTOR (BY SRI A.SHANKAR AND SRI M.LAVA, ADVS.) AND: 1. THE COMMISSIONER OF INCOME-TAX, 284/1, PARK VIEW BUILDING, 4TH MAIN, P.J.EXTENSION, DAVANGERE-577 002. 2. THE ASSISTANT COMMISSIONER OF INCOME-TAX (INV.), CIRCLE – 1(1), NAVANAGAR, HUBLI – 580 025. …RESPONDENTS I.T.A CROB NO.04/2010 IN I.T.A NO.715/2008 BETWEEN: SRI M.S. RAMESH - 10 - NO.181, DURGA NIVAS, DEVARAJ URS LAYOUT, DAVANGERE – 577 001. …CROSS OBJECTOR (BY SRI A.SHANKAR AND SRI M.LAVA, ADVS.) AND: 1. THE COMMISSIONER OF INCOME-TAX, 284/1, PARK VIEW BUILDING, 4TH MAIN, P.J.EXTENSION, DAVANGERE-577 002. 2. THE ASSISTANT COMMISSIONER OF INCOME-TAX (INV.), CIRCLE – 1(1), NAVANAGAR, HUBLI – 580 025. …RESPONDENTS I.T.A CROB NO.09/2010 IN I.T.A NO.716/2008 BETWEEN: LATE SRI B.S.SHANKAR RAO REP. BY ITS L/R’S SRI.M.S.RAMESH NO.181, DURGA NIVAS, DEVARAJ URS LAYOUT, DAVANGERE – 577 001. …CROSS OBJECTOR (BY SRI A.SHANKAR AND SRI M.LAVA, ADVS.) AND: 1. THE COMMISSIONER OF INCOME-TAX, 284/1, PARK VIEW BUILDING, 4TH MAIN, P.J.EXTENSION, DAVANGERE-577 002. - 11 - 2. THE ASSISTANT COMMISSIONER OF INCOME-TAX (INV.), CIRCLE – 1(1), NAVANAGAR, HUBLI – 580 025. …RESPONDENTS THESE ITA CROBs ARE FILED UNDER ORDER XLI, RULE 22 OF CPC 1908, ARISING OUT OF ORDER DATED 31-01-2008 FOR THE BLOCK ASSESSMENT YEARS 01/04/1987 TO 28/08/1997 IN IT(SS)A NOS.107/BANG/2002, 108/BANG/2002, 109/BANG/2002, 111/BANG/2002 AND 112/BANG/2002 RESPECTIVELY, PRAYING THAT THIS HON'BLE COURT MAY BE PLEASED TO: I. FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED THEREIN, II. ALLOW THE CROSS OBJECTIONS ARISING OUT OF THE ORDERS OF THE TRIBUNAL BEARING IT(SS)A NOS.107/BANG/2002, 108/BANG/2002, 109/BANG/2002, 111/BANG/2002 AND 112/BANG/2002, DATED 31-01-2008, RESPECTIVELY, IN THE INTEREST OF JUSTICE AND EQUITY. THESE ITAs. AND ITA CROSS OBJECTIONS COMING ON FOR ADMISSION THIS DAY, N.KUMAR J., DELIVERED THE FOLLOWING: J U D G M E N T These appeals are preferred by the Revenue, challenging the order passed by the Tribunal, which has held that the order of block assessment year is barred by limitation. - 12 - 2. We have heard the learned Counsel for the Revenue. 3. In fact, he submitted that the substantial questions of law in these appeals are similar to that of C.Ramaiah Reddy Vs. Assistant Commissioner of Income Tax (IMV) reported in [2011] 339 ITR 210 (Karn), wherein this Court had passed a detailed order and allowed the appeal. The said judgment is pending before the Apex Court. 4. In that view, we do not find any merit in these appeals and hold that the assessment is barred by limitation. The substantial questions of law involved is answered in favour of the assessee. Accordingly, the appeals are dismissed. In the event, the Revenue succeeds in the appeal before the Apex Court, liberty is reserved to revive these appeals. 5. In view of the judgment of this Court in the case of Smt.Jyothi Kumari Vs. Assistant Commissioner of Income Tax reported in (2012) 344 ITR 60(Kar), wherein, it is held that the cross-objection is not - 13 - maintainable in the income tax proceedings, these cross-objections are dismissed. Sd/- JUDGE Sd/- JUDGE nvj "