THE COMMISSIONER OF INCOME TAX vs. M/S BRIGADE ENTERPRISES LTD

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ITA/61/2012HC KarnatakaKAHC01017903201205 October 2012Bench: B.MANOHAR,K.SREEDHAR RAO2 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that the question of law raised in the appeal had already been answered against the revenue by this Court in ITA No. 763/2009 c/w ITA No. 25/2009, decided on February 29, 2012. Therefore, the appeal filed by the Revenue was dismissed. The reasoning is based on the precedent set by the High Court in similar matters, where the revenue's contention regarding the non-satisfaction of conditions under Section 80IB(10) was rejected. The ratio decidendi is that if a similar substantial question of law has been decided against the revenue, a subsequent appeal on the same issue will also be dismissed. The operative direction is the dismissal of the appeal.

What were the facts?

The appeal is filed by the Revenue against an order of the Income Tax Appellate Tribunal (ITAT), Bangalore, dated October 11, 2011, in ITA No. 1355/Bang/2010. The assessee is M/s Brigade Enterprises Ltd. The appeal concerns the assessment year(s) not specified in the judgment. The core dispute revolves around the assessee's eligibility for deduction under Section 80IB(10) of the Income Tax Act, 1961, for its Millennium project. The ITAT had ruled in favor of the assessee.

What were the issues?

1. Whether the Appellate Authorities were correct in holding that the assessee would be entitled to claim deduction under Section 80IB(10) of the Act in respect of its Millennium project despite the assessee not satisfying the conditions stipulated in Clauses (a) to (d) of Section 80IB(10) of the Act? The Revenue's contention is that the assessee failed to meet the conditions specified in clauses (a) to (d) of Section 80IB(10), and therefore, is not eligible for the deduction. The judgment does not record the specific arguments or precedents relied upon by the Revenue. The Assessee's contention, as implied by the ITAT's decision, is that they are entitled to the deduction under Section 80IB(10) for the Millennium project.

Which sections of the Income-tax Act were involved?

Section 80IB(10),Section 260-A

AI-generated summary — verify with the full judgment below

1 IN THE HIGH COURT OF KARNATAKA AT BANGALORE DATED THIS THE 5TH DAY OF OCTOBER 2012 PRESENT THE HON'BLE MR. JUSTICE K.SREEDHAR RAO AND THE HON'BLE MR. JUSTICE B.MANOHAR ITA No.61/2012 BETWEEN : 1 THE COMMISSIONER OF INCOME TAX C R BUILDING, QUEENS ROAD BANGALORE.

2 THE DY COMMISSIONER OF INCOME-TAX WARD-11 (2), C.R.BUILDING, QUEENS ROAD, BANGALORE. APPELLANTS ( By Sri. K V ARAVIND, ADV.) AND : M/S BRIGADE ENTERPRISES LTD PENT HOUSE, BRIGADE TOWERS, NO.135, BRIGADE ROAD, BANGALORE-560025. RESPONDENT ITA is filed Under Sec.260-A of I.T. Act, 1961, arising out of Order dated 11/10/2011 passed in ITA No.1355/Bang/2010 by the ITAT, Bangalore. This ITA coming on for admission this day, K.SREEDHAR RAO, J, delivered the following:

2 JUDGMENT The following substantial question of law raised in the memorandum of appeal is taken up for consideration: Whether the Appellate Authorities were correct in holding that the assessee would be entitled to claim deduction u/s.80IB(10) of the Act in respect of its Millennium project despite the assessee not satisfying the conditions stipulated in Clauses (a) to (d) of Section 80IB(10) of the Act? This Court in ITA No.763/2009 c/w ITA No.25/2009 (DD 29.2.2012) has answered the said question of law against the revenue. Accordingly, the appeal is dismissed. Sd/- JUDGE Sd/- JUDGE bkm.

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