Karnataka High Court
Karnataka Vikas Grameena Bank vs The Joint Commissioner Of Income Tax on 3 June, 2024
Author: S G Pandit
Bench: S G Pandit
-1-
NC: 2024:KHC-D:7303-DB
ITA No.100045 of 2018
IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH
DATED THIS THE 3RD DAY OF JUNE, 2024
PRESENT
THE HON'BLE MR JUSTICE S G PANDIT
AND
THE HON'BLE MR JUSTICE G BASAVARAJA
INCOME TAX APPEAL NO.100045 OF 2018
BETWEEN:
KARNATAKA VIKAS GRAMEENA BANK
R/BY ITS GENERAL MANAGER
SRI. I.G. KUMARAGOUD,
HO, CTS NO.52/B1/A1/DH
NO.133A, HO BUILDING,
BELGAUM ROAD, D.N. KOPPA,
DHARWAD-580008, PAN: AAAAK6324Q.
...APPELLANT
(BY SRI. A. SHANKAR, SENIOR COUNSEL FOR
SRI. SHASHANK S. HEGDE, ADVOCATE)
AND:
THE JOINT COMMISSIONER OF INCOME TAX
RANGE-2, C.R. BUILDING,
HUBBALLI-DHARWAD ROAD,
JAGADISH
TR
NAVANAGAR, HUBLI-580025.
Digitally signed by
JAGADISH T R
...RESPONDENT
Location: HIGH COURT
OF KARNATAKA
DHARWAD BENCH
(BY SRI. M. TIRUMALESH, ADVOCATE)
THIS ITA IS FILED U/SEC.260A OF THE INCOME-TAX ACT 1961,
PRAYING TO, ALLOW THE APPEAL AND SET ASIDE THE FINDINGS
THEREIN TO THE EXTENT AGAINST THE APPELLANT IN THE ORDER
PASSED BY THE HON'BLE INCOME TAX APPELLATE TRIBUNAL,
BANGALORE BENCH "A" BANGALORE IN ITA NO. 673 AND
674/Bang/2014 AND ITA NO.684/Bang/2014 VIDE COMMON ORDER
DATED 25.04.2018 RELATING TO THE ASSESSMENT YEAR 2009-10
AND 2010-11 RESPECTIVELY (VIDE ANNEXURE-A).
THIS APPEAL, COMING ON FOR ORDERS, THIS DAY,
S G PANDIT, J., DELIVERED THE FOLLOWING:
-2-
NC: 2024:KHC-D:7303-DB
ITA No.100045 of 2018
JUDGMENT
Learned Senior Counsel, Sri. A.Shankar for Sri.
Shashank S.Hegde, learned counsel for the appellant, would
seek leave to withdraw the above appeal insofar as impugned
order bearing No. ITA 673/BANG/2014 passed by the Income
Tax Appellate Tribunal, Bengaluru Bench 'A'. A memo is also
filed to that effect. The memo is placed on record.
2. The above appeal insofar as impugned order in
ITA 673/BANG/2014 dated 25.04.2018 is dismissed as
withdrawn.
3. Heard Sri. A.Shankar, learned Senior Counsel,
for the appellant and Sri. M.Tirumalesh, learned counsel for
the respondent-revenue.
4. This appeal was admitted to consider the
following substantial question of law:
"Whether the Tribunal committed an
error of law in not allowing the claim of the
appellant in respect of deduction under
Section 36(1)(viia) of the Income Tax Act?"
Subsequently, appellant has filed a memo, dated
30.05.2024, raising additional substantial questions of law
NC: 2024:KHC-D:7303-DB
numbering as 39(a) and 39(b) enclosing the judgment
dated 11.10.2023 passed by this Court in ITA
No.100007/2020. The additional substantial questions of
law numbered as 39(a) and 39(b) read as under:
"39(a) Whether the authorities below failed to
appreciate that the appellant is a Co-operative
Society being a Rural Regional Bank and
consequently not hit by the prohibition under
Section 80P(4) of the Act, on the facts and
circumstances of the case.
39(b) Whether the authorities below were justified
in assessing the appellant as an Association of
Persons (AOP) when the appellant ought to have
been assessed as a Co-operative Society and
consequently the order passed in the wrong status
is required to be set aside as bad in law, on the
facts and circumstances of the case."
5. Learned Senior Counsel for the appellant would
submit that the substantial questions of law raised at
No.39(a) and 39(b) were not considered by the Tribunal
which requires consideration. Further, learned Senior
Counsel would refer to the judgment 11.10.2023 in ITA
NC: 2024:KHC-D:7303-DB
No.100007/2020 passed by this Court in identical
fact-situation. In terms of the said judgment, he prays for
remanding the matter to the Tribunal keeping open the
questions on which the appeal was admitted.
6. Learned counsel for the respondent-revenue
would submit that the said contention was not urged before
the Tribunal and as such, there is no merit in the appeal
and the same is liable to be dismissed.
7. Perused the judgment of this Court in ITA
No.100007/2020 referred to by the learned Senior counsel
for the appellant. A co-ordinate Bench of this Court, in
identical fact-situation, has allowed the said appeal and
remitted the matter back to the Tribunal for considering the
substantial question of law Nos.(v) and (vi) raised therein,
which are similar to the additional substantial questions of
law raised in this appeal extract above as 39(a) and 39(b).
In view of the same, the present appeal also requires to be
allowed in terms of the judgment dated 11.10.2023 passed
in ITA No.100007/2020. Hence the following:
NC: 2024:KHC-D:7303-DB
ORDER
i) The appeal is hereby allowed.
ii) The impugned order dated 25.04.2018 passed in
Assessment Year 2010-11 on the file of the
Income Tax Appellate Tribunal, Bangalore Bench
'A', is hereby set aside.
iii) Matter is remitted back to the Tribunal for
consideration of the issue at Nos.39(a) & 39(b)
referred to supra, in accordance with law.
Liberty is reserved in favour of the appellant to
raise and urge the substantial question of law
Nos.39(a) & 39(b) as referred to supra, if the need so
arises at a later stage.
Sd/-
JUDGE
Sd/-
JUDGE
KMS, CT:VP
