High Court sets aside ITAT order, remands case for reconsideration on merits.

The High Court of Karnataka allowed the appeal, setting aside the order of the Income Tax Appellate Tribunal, Bangalore. The Tribunal's dismissal of the Revenue's appeals for lack of consent from the Committee of Dispute was overturned based on recent Supreme Court judgments. The case was remanded for reconsideration on merits, restoring the appeals to the Tribunal for further proceedings. The respondent's counsel was granted permission to file vakalath within four weeks.

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Issues involved: Appeal challenging the order of the Income Tax Appellate Tribunal based on the requirement of obtaining consent of the Committee of Dispute (COD) as per previous judgments.

Summary:
The High Court of Karnataka considered the appeal challenging the order of the Income Tax Appellate Tribunal, Bangalore, which had dismissed the appeals filed by the Revenue on the grounds that no direction had been obtained from the Committee of Dispute (COD). The Court noted that the Tribunal's decision was based on previous judgments and the requirement of obtaining consent from the COD. However, the Court referred to recent judgments of the Hon'ble Supreme Court, including the case of ELECTRONICS CORPORATION OF INDIA LTD. vs. UNION OF INDIA & ORS., which led to the recall of the earlier judgment in ONGC vs. CITY & INDUSTRIAL DEVELOPMENT CORPN. The Court held that the order of the Tribunal was liable to be set aside and remanded for a decision on merits in accordance with the law. Consequently, the appeal was allowed, and the ITA Nos. 961 & 548/ Bang/06 were restored to the file of the Income Tax Appellate Tribunal, Bangalore Bench 'A' for further consideration. The respondent's counsel was granted permission to file vakalath within four weeks from the date of the judgment.

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