THE COMMISSIONER OF INCOME TAX vs. M/S ADVANCE MIRCONIC DEVICERS LTD

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ITA/122/2007HC KarnatakaKAHC01039440200726 September 2012Bench: B.MANOHAR,K.SREEDHAR RAO2 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that the question of law, as framed, is decided against the revenue. This decision is based on the High Court's own judgment in ITA Nos. 631 and 639 of 2004, dated February 23, 2012. The principle derived from this prior ruling is that the assessee is entitled to claim 75% of the 1/5 price paid (Rs. 2.9 crores) for the acquisition of the agency business over 5 consecutive assessment years from 1995-96 onwards, on the basis of amortization. The appeal filed by the Revenue is accordingly dismissed. No specific issue was left undecided.

What were the facts?

The Commissioner of Income Tax and the Deputy Commissioner of Income Tax (the Revenue) filed an appeal before the High Court of Karnataka against an order dated July 6, 2006, passed by the Income Tax Appellate Tribunal (ITAT), Bangalore. The ITAT's order was in ITA No. 3373/Bang/2004. The appeal was filed under Section 260-A of the Income Tax Act, 1961. The dispute pertains to the assessment years from 1995-96 onwards. The assessee is M/s Advanced Micronic Devices Ltd. The core of the dispute involves the claim of amortization by the assessee.

What were the issues?

1. Whether the Appellate Authorities were correct in holding that the assessee would be entitled to claim 75% of the 1/5 price paid of Rs. 2.9 crores for the acquisition of agency business for 5 consecutive assessment years from 1995-96 onwards on the basis of amortization? (Question of law) Assessee's Contention: Not recorded in the judgment. Revenue's Contention: Not recorded in the judgment. The judgment states that the question of law is held against the revenue in view of a previous judgment of the High Court.

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 AT BANGALORE DATED THIS THE 26TH DAY OF SEPTEMBER 2012 PRESENT THE HON'BLE MR. JUSTICE K.SREEDHAR RAO AND THE HON'BLE MR. JUSTICE B.MANOHAR ITA No.122/2007 BETWEEN : 1 THE COMMISSIONER OF INCOME TAX C.R.BUILDING QUEEN'S ROAD BANGALORE.

2 THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-1(1) C R BUILDING, QUEENS ROAD BANGALORE. APPELLANTS ( By Sri K V ARAVIND, ADV.) AND : M/S ADVANCED MIRCONIC DEVICERS LTD, NO.101, MICRONICS HOUSE, 15TH CROSS 2ND BLOCK, JAYANAGAR BANGALORE-560 011. RESPONDENT ( By Sri. A SHANKAR & M LAVA, ADVs.) This I.T.A. Is filed u/S.260-A of I.T.Act 1961 arising out of order dated 06-07-2006 passed in ITA No.3373/Bang/2004 passed by the ITAT, Bangalore.

2 This ITA coming on for hearing this day, K.SREEDHAR RAO, J, delivered the following: JUDGMENT In view of the judgment of this Court in ITA Nos.631 and 639 of 2004 (DD 23.2.2012), the question of law, which is framed as under, is held against the revenue. Whether the Appellate Authorities were correct in holding that the assessee would be entitled to claim 75% of the 1/5 price paid of Rs.2.9 crores for acquisition of Agency business for 5 consecutive assessment years from 1995-96 onwards on the basis of amortization? Accordingly, the appeal is dismissed. (Sd/-) JUDGE (Sd/-) JUDGE bkm.

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