2021 (7) TMI 549 - AT - Income Tax

Disallowance of claim of payment of property tax - CIT-A deleted the addition - HELD THAT - As decided in own case 2021 (2) TMI 1059 - KARNATAKA HIGH COURT HC confirmed the ITAT s order as regards the deletion of addition - In view of the above finding of the Hon ble High Court, posting of the Revenue s appeal for hearing by the ITAT s Registry is a mistake. Hence, the Revenue s appeal is dismissed.

Summary

Issues:
Whether the CIT(A) erred in deleting the addition of ?87,50,000 made on account of disallowance of claim of payment of property tax.

Analysis:
The appeal before the Appellate Tribunal was directed against the CIT(A)'s order dated 22.09.2011 concerning the assessment year 2008-2009. The sole issue raised was the deletion of the addition of ?87,50,000 on the claim of payment of property tax. The ITAT had previously disposed of both the Revenue's appeal and the assessee's appeal in a consolidated order dated 21.12.2012. The ITAT had partly allowed the assessee's appeal and dismissed the Revenue's appeal. Subsequently, the Revenue had filed an appeal under section 260A of the Income Tax Act before the High Court of Karnataka, challenging the ITAT's order. The High Court, in its judgment dated 01.02.2021, confirmed the deletion of the addition of ?87,50,000, stating that the assessee was entitled to deduction as the property tax had been paid. The High Court referenced the Supreme Court decision in BHARAT EARTH MOVERS to support its decision. As a result, the ITAT dismissed the Revenue's appeal as the issue had been settled by the High Court's judgment.

In light of the High Court's finding and confirmation of the deletion of the addition of ?87,50,000, the ITAT deemed the posting of the Revenue's appeal for hearing as a mistake. Consequently, the ITAT dismissed the Revenue's appeal, upholding the decision in favor of the assessee. The appeal filed by the Revenue was thus dismissed, and the order to this effect was pronounced on July 13, 2021.