THE PR COMMISSIONER OF INCOME TAX V. M/S CONFIDENT PROJECTS INDIA PVT LTD

ITA/469/2022

AI Insights

The case involves two Income Tax Appeals (ITA No. 469/2022 and ITA No. 470/2022) filed by the Revenue against M/s. Confident Projects India Pvt. Ltd. The appeals challenged the orders passed by the Income Tax Appellate Tribunal, Bengaluru, which had set aside the orders under section 263 of the Income Tax Act, 1961. The main legal contention revolved around whether the Tribunal was correct in its interpretation and application of sections 263, 143(3), and 153A of the Act concerning the revision of assessment orders and the requirement of incriminating material for such revisions. However, due to the monetary threshold set by the recent circular, the appeals were dismissed without delving into the substantive issues raised.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 676866 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 19-08-2024
• Assessment Year: misc
• Laws Referred To: Income Tax Act 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: M S RAJENDRA; VIVEK HOLLA
• Assessee Lawyers: RAVI RAJ
• Keywords: Assessment Order; Deduction claim; Income tax appeal; Incriminating material; Revisionary proceedings; Substantial questions of law
• Section: 143(3); 263; 153A; 80IB; 260-A

Judgement Text

" - 1 - NC: 2024:KHC:33055-DB ITA No. 469 of 2022 C/W ITA No. 470 of 2022 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 19TH DAY OF AUGUST, 2024 PRESENT THE HON'BLE MR JUSTICE S.G.PANDIT AND THE HON'BLE MR JUSTICE C.M. POONACHA INCOME TAX APPEAL No. 469 OF 2022 C/W INCOME TAX APPEAL No. 470 OF 2022 IN ITA No.469/2022 BETWEEN: 1. THE PR. COMMISSIONER OF INCOME -TAX CENTRAL CIRCLE, C.R.BUILDING QUEEN’S ROAD, BENGALURU - 560 001. 2. THE DEPUTY COMMISSIONER OF INCOME -TAX CENTRAL CIRCLE-1(4) C.R.BUILDING QUEEN’S ROAD, BENGLAURU - 560 001. …APPELLANTS (BY SRI RAVI RAJ Y V, ADVOCATE) AND: M/s. CONFIDENT PROJECTS INDIA PVT. LTD., No.574 PARK HOUSE, 8TH BLOCK KORAMANGALA BENGLAURU - 560 095. PAN: AACCC 7506L. …RESPONDENT (BY SRI M.S. RAJENDRA, ADVOCATE FOR Digitally signed by BHARATHI S Location: HIGH COURT OF KARNATAKA - 2 - NC: 2024:KHC:33055-DB ITA No. 469 of 2022 C/W ITA No. 470 of 2022 SRI VIVEK HOLLA, HOLLA AND HOLLA, ADVOCATE) THIS ITA IS FILED UNDER SECTION 260-A OF INCOME TAX ACT 1961, PRAYING TO FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED THEREIN AND ALLOW THE APPEAL AND SET ASIDE THE ORDERS PASSED BY THE INCOME TAX APPELLATE TRIBUNAL, BENGALURU IN ITA No. 336/BANG/2021 DATED 13/05/2022 FOR ASSESSMENT YEAR 2012-2013 ANNEXURE-C AND CONFIRM THE ORDER OF THE APPELLATE COMMISSIONER CONFIRMING THE ORDER PASSED BY THE PR. COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE, BENGLAURU AND ETC., IN ITA No.470/2022 BETWEEN: 1. THE PR. COMMISSIONER OF INCOME -TAX CENTRAL CIRCLE, C.R.BUILDING QUEEN’S ROAD, BENGALURU - 560 001. 2. THE DEPUTY COMMISSIONER OF INCOME -TAX CENTRAL CIRCLE-1(4) C.R.BUILDING QUEEN’S ROAD, BENGLAURU - 560 001. …APPELLANTS (BY SRI RAVI RAJ Y V, ADVOCATE) AND: M/s. CONFIDENT PROJECTS INDIA PVT. LTD., No.574 PARK HOUSE, 8TH BLOCK KORAMANGALA BENGLAURU - 560 095. PAN: AACCC 7506L. …RESPONDENT (BY SRI M.S. RAJENDRA, ADVOCATE FOR SRI VIVEK HOLLA, HOLLA AND HOLLA, ADVOCATE) - 3 - NC: 2024:KHC:33055-DB ITA No. 469 of 2022 C/W ITA No. 470 of 2022 THIS ITA IS FILED UNDER SECTION 260-A OF INCOME TAX ACT 1961, PRAYING TO FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED THEREIN AND ALLOW THE APPEAL AND SET ASIDE THE ORDERS PASSED BY THE INCOME TAX APPELLATE TRIBUNAL, BENGALURU IN ITA No. 409/BANG/2021 DATED 13/05/2022 FOR ASSESSMENT YEAR 2011-2012 ANNEXURE-C AND CONFIRM THE ORDER OF THE APPELLATE COMMISSIONER CONFIRMING THE ORDER PASSED BY THE PR. COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE, BENGLAURU AND ETC., THESE APPEALS COMING ON FOR ADMISSION THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE S.G.PANDIT and HON'BLE MR JUSTICE C.M. POONACHA ORAL JUDGMENT (PER: HON'BLE MR JUSTICE S.G.PANDIT) 1. ITA No.469/2022 is filed by the Revenue questioning the order passed by the Income Tax Appellate Tribunal, Bengaluru1 in ITA No.336/Bang/2021 dated 13.05.2022 for the assessment year 2012-13 and ITA No.470/2022 is also filed by the Revenue questioning the order passed by the Tribunal in ITA No.409/Bang/2021 dated 13.05.2022 for the assessment year 2011-12. 1 Hereinafter referred to as the ‘Tribunal’ - 4 - NC: 2024:KHC:33055-DB ITA No. 469 of 2022 C/W ITA No. 470 of 2022 2. In both the appeals the Revenue has raised the following substantial questions of law: 1. \"Whether, on the facts and in the circumstances of the case and law, the Tribunal is right in law in setting aside order passed under section 263 of the Act by holding that order reviewed by Commissioner in proceedings initiated under section 263 of the Act are not based on incriminating materials ignoring that section 15# do not stipulate that order under section 143(3) read with section 153A has tobe based on incriminating material and when the Commissioner rightly took up suo motu revision as conditions set out in Section 263 are fully satisfied\"? 2. \"Whether, on the facts and in the circumstances of the case and law, Tribunal's order can be said as perverse in holding that directions issued by Commissioner under section 263 of the Act cannot be sustained in law ignoring mandate of sections 263 of the Act and as well as 153A of the Act\"? 3. \"Whether on the facts and in the circumstances of the case, the Tribunal is right in law holding that the Pr.CIT is seeking to revise the assessment orders completed u/s 143(3) r.w.s. 153A of the I.T.Act when the Assessing Officer in order passed under section 143(3) r.w.s. 153A of the I.T.Act, cannot deny the claim of deduction u/s 80IB of the I.T.Act (in absence of incriminating material), therefore, the Pr.CIT in a revisionary proceeding cannot direct the assessing officer to disallow the claim of deduction\"? 4. \"Whether on the facts and in the circumstances of the case, the Tribunal is right in law in holding that there is no error in the assessment orders completed u/s 143(3) r.w.s. 153A of the I.T.Act (since there is no incriminating material found during the course of search pertaining to the claim of deduction under section 80IB of the I.T.Act), warranting interference by Pr.CIT u/s 263 of the I.T.Act when assessing - 5 - NC: 2024:KHC:33055-DB ITA No. 469 of 2022 C/W ITA No. 470 of 2022 authority had failed to consider that conditions set out Section 80IB were not fully satisfied in case of assessee to allow the claim made under said section and when original assessments passed on 10.05.2013 and 14.08.2014 for A.Y. 2011-12 and 2012-13 under section 143(3) were abated as per proviso to Section 153A of the Act\"? 3. Appeals were filed on 22.09.2022. Monetary value involved in ITA No.469/2022 is `76,50,017/- and in ITA No.470/2022 is `74,56,741/- respectively. Subsequent to filing of the appeals, Circular bearing No.5/2024 [F.No.279/Misc.142/2007-ITJ(PT.)] dated 15.3.2024 is issued under Section 265(A) of the Income Tax Act, 1961 prescribing monetary limit to prefer an appeal before the High Court. 4. In view of the above Circular, the above appeals would not be maintainable since monetary value involved in these appeals is less than rupees one crore. Therefore, the above appeals would not survive for consideration and they are dismissed. - 6 - NC: 2024:KHC:33055-DB ITA No. 469 of 2022 C/W ITA No. 470 of 2022 5. In view of the above, the substantial questions of law raised in both the appeals are kept open to be considered in an appropriate case. Sd/- (S.G.PANDIT) JUDGE Sd/- (C.M. POONACHA) JUDGE BS List No.: 1 Sl No.: 10 "