PRINCIPAL COMMISSIONER OF INCOME TAX-5, vs. M/S NSL SUGARS LTD

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ITA No. 85 of 2021

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 27TH DAY OF FEBRUARY, 2023 PRESENT THE HON'BLE MR JUSTICE P.S.DINESH KUMAR AND THE HON'BLE MR JUSTICE C.M. POONACHA INCOME TAX APPEAL NO. 85 OF 2021 BETWEEN:

AND:

THIS INCOME TAX APPEAL IS FILED UNDER SEC.260-A OF INCOME TAX ACT 1961, PRAYING TO DECIDE THE FOREGOING QUESTION OF LAW; SET ASIDE THE APPELLATE ORDER DATED 31/07/2019 PASSED BY THE INCOME TAX APPELLATE TRIBUNAL, B BENCH, BENGALURU, IN APPEAL PROCEEDINGS NO. ITA NO. 598/BANG/2019 (ANNEXURE-A) FOR THE ASSESSMENT YEAR 2011-2012 AS SOUGHT FOR IN THIS

Digitally signed by NIRMALADEVI Location: HIGH COURT OF KARNATAKA

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ITA No. 85 of 2021

APPEAL, AND TO GRANT SUCH OTHER RELIEF AS DEEMED FIT, IN THE INTEREST OF JUSTICE AND ETC.

THIS ITA COMING ON FOR HEARING, THIS DAY P.S.DINESH KUMAR J., DELIVERED THE FOLLOWING: JUDGMENT This appeal by the Revenue, directed against the order dated 31.07.2019 in ITA No.58/Bang/2019, passed by the ITAT1, "C" Bench, Bangalore, has been admitted to consider the following question of law: " Whether on the facts and in the circumstances of the case, the Tribunal is right in law in directing the assessing authority to delete the addition of rs.3,00,77,70/- made by assessing authority as expenditure under section 14A of the Act in respect of earning exempt income while computing book profit under section 115JB of the Act eventhough the assessing authority had rightly made the addition since condition set out in section 14A r.w. Rule 8D were satisfied to make addition while computing book profit under Section 115JB of the ACT?" 2. Heard Shri E.I. Sanmathi, learned Standing Counsel for the Revenue and Shri. V.Chandrashekar, learned Advocate for the respondent-Assessee. 3. At the outset Shri. V. Chandrashekar, learned Advocate for the assessee submits that the question of law raised in this appeal is covered by the decision of this Court in the case

1 Income tax Appellate Tribunal, Bengaluru Bench

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ITA No. 85 of 2021

of Commissioner of Income Tax, Bangalore V. Gokaldas Images (P.) Ltd.,2

(i) Appeal is dismissed;

(ii) The substantial question of law is answered in favour of the Assessee and against the Revenue.

No costs.

SD/- JUDGE

SD/- JUDGE

BS List No.: 2 Sl No.: 14

2 [2020] 122 taxmann.com 160 (Karnataka)