THE COMMISSIONER OF INCOME TAX vs. M/S ENCORE SOFTWARE LTD

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ITA/1142/2006HC KarnatakaKAHC01040664200631 July 2012Bench: B.MANOHAR,K.SREEDHAR RAO2 pages
AI SummaryDismissed

What did the High Court hold?

The High Court of Karnataka dismissed the appeal filed by the Revenue. The Court referred to its own prior decision in the case of Commissioner of Income Tax & another Vs. M/s. Infosys Technologies Ltd., in ITA No. 1189/2006, dated November 22, 2011. In that earlier case, a similar question of law was decided against the Revenue. Following this precedent, the present appeal was also decided against the Revenue. The operative direction was to dismiss the appeal. No specific issue was left undecided.

What were the facts?

The Commissioner of Income Tax and the Assistant Commissioner of Income Tax (the Revenue) filed an appeal under Section 260-A of the Income Tax Act, 1961, before the High Court of Karnataka. The appeal challenged an order dated March 24, 2006, passed by the Income Tax Appellate Tribunal (ITAT), Bangalore, in ITA No. 1163/Bang/2005. The ITAT's order had confirmed an earlier order passed by the Appellate Commissioner, which in turn had set aside an order passed by the Assistant Commissioner of Income Tax, Circle-11(2), Bangalore. The assessment year in question is 2001-02. The Revenue sought to set aside the ITAT's order and confirm the order of the Assistant Commissioner.

What were the issues?

1. Whether the ITAT erred in confirming the order of the Appellate Commissioner, thereby setting aside the order of the Assistant Commissioner, for the Assessment Year 2001-02, turning on the provisions of the Income Tax Act, 1961. Assessee's contentions: Not recorded in the judgment. Revenue's contentions: The Revenue sought to restore the order of the Assistant Commissioner and argued that the ITAT's decision was incorrect. The judgment does not explicitly detail the specific arguments made by the Revenue or cite any specific authorities, circulars, or precedents relied upon by either party.

Which sections of the Income-tax Act were involved?

Section 260-A

AI-generated summary — verify with the full judgment below

1 IN THE HIGH COURT OF KARNATAKA, BANGALORE DATED THIS THE 31ST DAY OF JULY, 2012 PRESENT THE HON'BLE MR. JUSTICE K.SREEDHAR RAO AND THE HON'BLE MR. JUSTICE B.MANOHAR I.T.A. No. 1142 OF 2006 BETWEEN:- 1. The Commissioner of Income Tax, Central Circle, C.R. Building, Queens Road, Bangalore. 2. The Assistant Commissioner of Income Tax, Circle – 11(2), C.R. Building, Queens Road, Bangalore. Appellants (By Sri G. Kamaladhar, Advocate) AND:- M/s. Encore Software Ltd., No.44 & 45, 6th Floor, Leo-Complex, Residency Road Cross, Bangalore. Respondent (By Sri A. Shankar, Advocate)

2 This ITA is filed U/s.260-A of I.T. Act, 1961 arising out of Order dated 24.03.2006 passed in ITA No.1163/Bang/2005, for the Assessment Year 2001-02, praying that this Hon’ble Court may be pleased to: (i) formulate the substantial questions of law stated therein and (ii) allow the appeal and set aside the order passed by the ITAT Bangalore in ITA No.1163/Bang/2005 dated 24-03- 2006 confirming the order passed by the Appellate Commissioner and confirm the order passed by the Asst. Commissioner of Income Tax, Circle-11(2), Bangalore, in the interest of justice and equity. This appeal is coming on for hearing this day, SREEDHAR RAO, J., delivered the following: J U D G M E N T In the decision of this Court in the case of the Commissioner of Income Tax & another Vs. M/s.Infosys Technologies Ltd., in ITA No.1189/2006, dated 22.11.2011, the question of law is answered against the revenue. In that view, the appeal is dismissed. Sd/- JUDGE Sd/- JUDGE NM*

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