THE PR. COMMISSIONER OF INCOME TAX vs. M/S WATERS (INDIA) PVT LTD

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ITA/172/2023HC KarnatakaKAHC01017367202315 July 2024Bench: KRISHNA S DIXIT,RAMACHANDRA D. HUDDAR4 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court disposed of the appeals in terms of the memo filed by the appellants, which sought to produce a rectification order under Section 154 r.w.s. 155(18) of the Act. The assessee did not object to this course of action. Consequently, the appeals were disposed of without deciding the substantial questions of law on their merits. The Court explicitly stated that the questions of law framed in the appeals are kept open for consideration in an appropriate case. No specific findings were made on the merits of the original dispute, and no operative directions like deletion or remand were issued concerning the ITAT's orders. The costs were made easy.

What were the facts?

The appeals were filed by the Principal Commissioner of Income Tax and the Deputy Commissioner of Income Tax (appellants) against the orders of the Income-Tax Appellate Tribunal (ITAT) for Assessment Years 2010-2011 and 2011-2012. The ITAT's orders were challenged by the revenue. The assessee is M/s. Waters (India) Pvt. Ltd. During the pendency of these appeals before the High Court, the appellants filed a memo seeking to produce a rectification order under Section 154 read with Section 155(18) of the Income Tax Act, 1961, passed by the assessing officer. The respondent-assessee did not object to the disposal of the appeals in terms of this rectification order.

What were the issues?

1. Whether the substantial questions of law framed in the appeal should be decided on merits. Assessee's Contention: The assessee's counsel did not object to the disposal of the appeals in terms of the rectification order filed by the appellants. The assessee did not present any arguments on the merits of the case. Revenue's Contention: The revenue sought to produce a rectification order passed by the assessing officer and have the appeals disposed of in terms of that order. The revenue relied on the rectification order under Section 154 r.w.s. 155(18) of the Act.

Which sections of the Income-tax Act were involved?

Section 260-A,Section 154,Section 155(18)

AI-generated summary — verify with the full judgment below

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NC: 2024:KHC:27140-DB ITA No. 173 of 2023 C/W ITA No. 172 of 2023

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 15TH DAY OF JULY, 2024 PRESENT THE HON'BLE MR JUSTICE KRISHNA S DIXIT AND THE HON'BLE MR JUSTICE RAMACHANDRA D. HUDDAR INCOME TAX APPEAL NO. 173 OF 2023 C/W INCOME TAX APPEAL NO. 172 OF 2023 IN ITA NO. 173/2023:

BETWEEN:

1.

THE PR. COMMISSIONER OF INCOME TAX, 5TH FLOOR, BMTC BUILDING, 80 FEET ROAD, KORMANGALA, BENGALURU - 560 095.

2.

THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 12(5), PRESENT ADDRESS DCIT, CIRCLE-7(1)(1), 2ND FLOOR, BMTC BUILDING, 80 FEET ROAD, KORMANGALA, BENGALURU - 560 095. …APPELLANTS (BY SRI. Y.V. RAVIRAJ, STANDING COUNSEL A/W SRI. DILIP M, ADVOCATE)

AND:

M/S. WATERS (INDIA) PVT. LTD., NO.36A, 2ND PHASE, PEENYA INDUSTRIAL AREA, BENGALURU - 560 058, PAN: AAACW 1411C. …RESPONDENT (BY SRI. K.R. VASUDEVAN, ADVOCATE)

Digitally signed by SHAKAMBARI Location: HIGH COURT OF KARNATAKA

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NC: 2024:KHC:27140-DB ITA No. 173 of 2023 C/W ITA No. 172 of 2023

THIS INCOME TAX APPEAL IS FILED UNDER SEC.260-A OF THE INCOME TAX ACT, 1961, PRAYING TO I. FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED ABOVE AND ALLOW THE APPEAL AND SET ASIDE THE ORDERS PASSED BY THE INCOME-TAX APPELLATE TRIBUNAL, BENGALURU IN IT(TP)A NO.2617/BANG/2019 DATED 01/10/2021 FOR ASSESSMENT YEAR 2011-2012 ANNEXURE-D AND CONFIRM THE ORDER OF THE APPELLATE COMMISSIONER CONFIRMING THE ORDER PASSED BY THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-7(1)(1), BENGALURU.

IN ITA NO. 172/2023:

BETWEEN:

1.

THE PR. COMMISSIONER OF INCOME TAX, 5TH FLOOR, BMTC BUILDING, 80 FEET ROAD, KORMANGALA, BENGALURU - 560 095.

2.

THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 12(5), PRESENT ADDRESS DCIT, CIRCLE-7(1)(1), 2ND FLOOR, BMTC BUILDING, 80 FEET ROAD, KORMANGALA, BENGALURU - 560 095. …APPELLANTS (BY SRI. Y.V. RAVIRAJ, STANDING COUNSEL A/W SRI. DILIP M, ADVOCATE)

AND:

M/S. WATERS (INDIA) PVT. LTD., NO.36A, 2ND PHASE, PEENYA INDUSTRIAL AREA, BENGALURU - 560 058, PAN: AAACW 1411C. …RESPONDENT (BY SRI. K.R. VASUDEVAN, ADVOCATE)

THIS INCOME TAX APPEAL IS FILED UNDER SEC.260-A OF THE INCOME TAX ACT, 1961, PRAYING TO FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED ABOVE AND

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NC: 2024:KHC:27140-DB ITA No. 173 of 2023 C/W ITA No. 172 of 2023

ALLOW THE APPEAL AND SET ASIDE THE ORDERS PASSED BY THE INCOME-TAX APPELLATE TRIBUNAL, BENGALURU IN IT(TP)A NO.2616/BANG/2019 DATED 01/10/2021 FOR ASSESSMENT YEAR 2010-2011 ANNEXURE-D AND CONFIRM THE ORDER OF THE APPELLATE COMMISSIONER CONFIRMING THE ORDER PASSED BY THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-7(1)(1), BENGALURU.

THESE APPEALS, COMING ON FOR ORDERS, THIS DAY, THE COURT DELIVERED THE FOLLOWING:

JUDGEMENT

A memo has been filed by the appellants herein in both the appeals requesting the Court to dispose off the same in terms of the Memo dated 04.04.2024 which reads as under: "The appellant in the above matter respectfully seeks leave of the Hon'ble Court to produce the rectification order under Section 154 r.w.s. 155(18) of the Act. This memo along with the enclosed copy of the order passed by the assessing officer may kindly be taken on record in the interest of justice and equity."

2.

Learned Counsel appearing for the respondent- assessee does not have objection to dispose of these appeals, Rectification Orders.

In view of the above, these appeals are accordingly disposed off. However, the questions of law framed in

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NC: 2024:KHC:27140-DB ITA No. 173 of 2023 C/W ITA No. 172 of 2023

the appeal are kept open for being considered in an appropriate case.

Costs made easy.

Sd/- JUDGE

Sd/- JUDGE

YN List No.: 1 Sl No.: 3

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