The Pr. Commissioner Of Income Tax vs M/S Doddanna Traders
2024 Latest Caselaw 22159 Kant

Citation : 2024 Latest Caselaw 22159 Kant
Judgement Date : 2 September, 2024

Karnataka High Court

The Pr. Commissioner Of Income Tax vs M/S Doddanna Traders on 2 September, 2024

Author: S.G.Pandit

Bench: S.G.Pandit

                                                 -1-
                                                       NC: 2024:KHC:35614-DB
                                                         ITA No. 262 of 2022




                        IN THE HIGH COURT OF KARNATAKA AT BENGALURU

                          DATED THIS THE 2ND DAY OF SEPTEMBER, 2024

                                           PRESENT
                              THE HON'BLE MR JUSTICE S.G.PANDIT
                                              AND
                            THE HON'BLE MR JUSTICE C.M. POONACHA
                              INCOME TAX APPEAL NO.262 OF 2022

                   BETWEEN:

                   1.    THE PR. COMMISSIONER
                         OF INCOME TAX
                         CENTRAL CIRCLE,
                         C.R.BUILDING, QUEENS ROAD,
                         BENGALURU-560 001.

                   2.    THE DEPUTY COMMISSIONER
                         OF INCOME TAX
                         CENTRAL CIRCLE,
                         NO.55/1, SHILPASHREE,
                         VIDHYARANYA COMPLEX,
                         VISHVESHWARANAGAR,
Digitally signed
by BHARATHI
S
                         MYSURU-570 008.
Location: HIGH                                                 ...APPELLANTS
COURT OF
KARNATAKA
                   (BY SRI. DILIP M, ADVOCATE)

                   AND:

                   M/S. DODDANNA TRADERS
                   NO.16, B BLOCK, APMC YARD,
                   SHIMOGGA-577 204
                   PAN AAJFD 1646A
                                                              ...RESPONDENT
                   (BY SRI. G S NAGHARISH, ADVOCATE)
                              -2-
                                          NC: 2024:KHC:35614-DB
                                            ITA No. 262 of 2022




    THE INCOME TAX APPEAL IS FILED UNDER SEC.260-A OF

INCOME TAX ACT 1961, ARISING OUT OF ORDER DATED

01/12/2021 PASSED IN ITA NO. 139/BANG/2021, FOR THE

ASSESSMENT YEAR 2015-2016 PRAYING TO I. FORMULATE

THE SUBSTANTIAL QUESTIONS OF LAW STATED THEREIN II.

ALLOW THE APPEAL AND SET ASIDE THE ORDERS PASSED BY

THE INCOME TAX APPELLATE TRIBUNAL, BENGALURU IN ITA

NO. 139/BANG/2021 DATED 01/12/2021 FOR ASSESSMENT

YEAR 2015-2016 ANNEXURE-C AND CONFIRM THE ORDER OF

THE APPELLATE COMMISSIONER CONFIRMING THE ORDER

PASSED BY THE DEPUTY COMMISSIONER OF INCOME TAX,

CENTRAL   CIRCLE,   MYSURU    III.   TO    PASS   SUCH   OTHER

SUITABLE ORDERS AS THIS HON'BLE COURT DEEMS FIT TO

GRANT IN THE FACTS AND CIRCUMSTANCES OF THE CASE IN

THE INTEREST OF JUSTICE AND EQUITY AND ETC.


    THIS APPEAL, COMING ON FOR ORDERS, THIS DAY,

JUDGMENT WAS DELIVERED THEREIN AS UNDER:

CORAM:    HON'BLE MR JUSTICE S.G.PANDIT
          and
          HON'BLE MR JUSTICE C.M. POONACHA
                                   -3-
                                             NC: 2024:KHC:35614-DB
                                               ITA No. 262 of 2022




                        ORAL JUDGMENT

(PER: HON'BLE MR JUSTICE S.G.PANDIT)

This appeal is filed under Section 260-A of the Income

Tax Act, 1961 (for short 'the Act') questioning the correctness

or otherwise of order passed by the Income Tax Appellate

Tribunal, Bengaluru in ITA No.139/Bang/2021 dated

01.12.2021 for the Assessment Year 2015-16 (Annexure-C).

2. The appeal was admitted on 06.09.2022. The

questions of law raised by the appellants at Sl.Nos.1, 2 and 3

are extracted as follows:

1. "Whether on the facts and in the circumstances of the case, the Tribunal order can be said as perverse in nature in holding that the conditions prescribed for passing order under section 263 of the Act are not satisfied when the CIT has given elaborate findings to demonstrate that the order passed by assessing authority was prejudicial as well as erroneous order"?

2. "Whether on the facts and in the circumstances of the case, the Tribunal is right in law in allowing appeal preferred by assessee by setting aside order passed under section 263 of the Act ignoring that assessing authority had not derived gross profits from unaccounted sales and purchases recorded in seized documents and

NC: 2024:KHC:35614-DB

assessing authority further failed to make proper enquiry before making additions"?

3. "Whether on the facts and in the circumstances of the case, the Tribunal's order setting aside order passed under section 263 of the Act holding that the assessing authority was correct in determining the unaccented income on the basis of GP rate in disclosed transactions as per regular books of accounts ignoring findings of Commissioner of Income Tax"?.

3. This appeal was filed on 23.05.2022 and Monetary

value involved is Rs.29,70,542/-. Subsequent to filing of the

appeal, 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 and the

exceptions to prefer an appeal before the High Court.

4. In view of the above Circular, the above appeal

would not be maintainable since monetary value involved in

this appeal is less than rupees one crore. Therefore, the above

appeal would not survive for consideration and the same is

dismissed.

NC: 2024:KHC:35614-DB