The Commissioner vs Avestagenome Project
2023 Latest Caselaw 159 Kant

                                                   -1-
                                                                   ITA No. 156/2021




                       IN THE HIGH COURT OF KARNATAKA AT BENGALURU

                             DATED THIS THE 3RD DAY OF JANUARY, 2023

                                              PRESENT

                           THE HON'BLE MR JUSTICE P.S.DINESH KUMAR

                                                   AND

                              THE HON'BLE MR JUSTICE G BASAVARAJA

                              INCOME TAX APPEAL NO.156 OF 2021

                      BETWEEN:
Digitally signed by
                      1.   THE COMMISSIONER
YASHODHA N                 OF INCOME-TAX (TDS)
Location: HIGH             4TH FLOOR, HMT BHAVAN
COURT OF                   59, BELLARY ROAD
                           BANGALORE-560 032
KARNATAKA
                      2.   THE DEPUTY COMMISSIONER
                           OF INCOME TAX
                           CIRCLE 16(1), 4TH FLOOR
                           HMT BHAVAN, 59
                           BELLARY ROAD
                           BANGALORE-560 032                       ...APPELLANTS

                      (BY SHRI. E.I. SANMATHI, STANDING COUNSEL)

                      AND:

                      AVESTAGENOME PROJECT
                      INTERNATIONAL PVT LTD
                      REGUS-UB CITY, CONCORDE
                      15TH FLOOR
                      VITTAL MALLYA ROAD
                      BANGALORE-560 001                            ...RESPONDENT

                      (BY SHRI. A. SHANKAR, SENIOR ADVOCATE FOR
                          SHRI. S. ANNAMALAI, ADVOCATE)

                            THIS INCOME TAX APPEAL IS FILED UNDER SECTION 260-A
                      OF INCOME TAX ACT 1961, ARISING OUT OF ORDER DATED
                      17/07/2019 PASSED IN ITA NO.428/BANG/2018, FOR THE
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                                                           ITA No. 156/2021




ASSESSMENT YEAR 2009-2010 PRAYING TO DECIDE THE
SUBSTANTIAL QUESTIONS OF LAW FRAMED ABOVE IN
FAVOUR OF THE APPELLANT AND SET ASIDE THE ORDER DATED
17/07/2019 IN ITA NO. 428/BANG/2018 PASSED BY THE HON'BLE
INCOME TAX APPELLATE TRIBUNAL, 'A' BENCH, BENGALURU FOR
THE ASSESSMENT YEAR 2009-2010 AND ETC.

      THIS APPEAL, COMING ON FOR ADMISSION, THIS DAY,
P.S.DINESH KUMAR J., DELIVERED THE FOLLOWING:

                                    JUDGMENT

This appeal is filed by the Revenue challenging

the order dated 17th July, 2019 in ITA

No.428/Bang/2018 for the Assessment Year 2009-2010

passed by the ITAT1.

2. At the outset, Shri A.Shankar, learned Senior

Advocate for the assessee, pointed out that tax

effect in this appeal is less than Rs.1 Crore. Therefore,

this appeal is not maintainable. In support of his

contention, he placed reliance on Circular No.3/2018

dated 11th July, 2018, issued by Central Board Direct

Taxes2.

3. Shri E.I.Sanmathi, learned standing counsel for

the Revenue submitted that since the deduction is made

Income Tax Appellate Tribunal

F No.279/Misc.142/2007-ITJ (Pt)

ITA No. 156/2021

under Sections 201(1) and 201(1A) of the Income Tax

Act, 1961, interest payable must be treated as tax and

accordingly submitted that this appeal is maintainable.

4. In Para 4 of the Circular referred to above,

it is specifically clarified that the tax shall not include

any interest thereon except where chargeability of

interest itself is in dispute.

5. In view of the above, we are persuaded to accept

the contention urged by Shri Shankar that appeal is not

maintainable. This appeal is accordingly dismissed.

No costs.

Sd/-

JUDGE

Sd/-

JUDGE

AV