THE PR. COMMISSIONER OF INCOME TAX CIT(A) vs. M/S. PUNE DYNASTY PROJECTS PVT LTD

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ITA/145/2020HC KarnatakaKAHC01022560202006 February 2023Bench: P.S.DINESH KUMAR,RAMACHANDRA D. HUDDAR4 pages
AI SummaryDismissed

What did the High Court hold?

The High Court dismissed the appeal filed by the Revenue. The substantial question of law was answered in favour of the assessee and against the Revenue.

What were the facts?

The Revenue appealed against an ITAT order that confirmed the Commissioner's order, which in turn confirmed the Assessing Officer's disallowance. The disallowance was made under Section 14A read with Rule 8D.

What were the issues?

Whether the Tribunal was right in setting aside the disallowance made under Section 14A read with Rule 8D, considering the conditions stipulated in the section and Circular No. 5 of 2014.

Which sections of the Income-tax Act were involved?

Section 14A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, BENGALURU IN

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ITA No. 145 of 2020

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 6TH DAY OF FEBRUARY, 2023 PRESENT THE HON'BLE MR. JUSTICE P.S.DINESH KUMAR AND THE HON'BLE MR. JUSTICE RAMACHANDRA D. HUDDAR INCOME TAX APPEAL NO.145 OF 2020

BETWEEN: 1. THE PR. COMMISSIONER OF INCOME TAX CIT(A), CENTRAL CIRCLE C.R.BUILDING, QUEEN’S ROAD BENGALURU-560 001 2. THE DEPUTY COMMISSIONER OF INCOME TAX CENTRAL CIRCLE-1(3) C.R.BUILDING, QUEEN’S ROAD BENGALURU-560 001 …APPELLANTS (BY SHRI. K.V. ARAVIND, SENIOR STANDING COUNSEL)

AND:

M/S. PUNE DYNASTY PROJECTS PVT LTD 1ST FLOOR, EMBASSY POINT 150, INFANTRY ROAD BENGALURU-560 001 PAN:AAECP 1340D …RESPONDENT

(BY MS. TANMAYEE RAJKUMAR, ADVOCATE)

Digitally signed by YASHODHA N Location: HIGH COURT OF KARNATAKA

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ITA No. 145 of 2020

THIS INCOME TAX APPEAL IS FILED UNDER SEC.260-A OF INCOME TAX ACT 1961, ARISING OUT OF ORDER DATED 26.12.2019 PASSED IN ITA NO.3261/BANG/2018, FOR THE ASSESSMENT YEAR 2014-2015. PRAYING TO FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED THEREIN AND ALLOW THE APPEAL AND SET ASIDE THE ORDERS PASSED BY THE INCOME TAX APPELLATE TRIBUNAL, BENGALURU IN ITA NO.3261/BANG/2018 DATED 26.12.2019 FOR THE ASSESSMENT YEAR 2014-2015 ANNEXURE-C CONFIRMING THE ORDER OF THE APPELLATE COMMISSIONER AND CONFIRM THE ORDER PASSED BY THE DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-1(3), BENGALURU AND ETC.

THIS ITA, COMING ON FOR ADMISSION, THIS DAY, P.S.DINESH KUMAR, J., DELIVERED THE FOLLOWING:

JUDGMENT

Ms. Tanmayee Rajkumar, learned advocate accepts notice for the respondent.

2.

This appeal by the Revenue challenging the order dated 26.12.2019 in ITA No.3261/Bang/2018 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 setting aside the disallowance made under section 14A read with Rule 8D of the Act/Rules without appreciating that conditions set out in said section as well as in Circular No.5 of 2014 are fully attracted in the facts of the present case to make such disallowance?

1 Income tax Appellate Tribunal, Bengaluru Bench

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ITA No. 145 of 2020

3.

Heard Shri K.V.Aravind, learned Senior Standing Counsel for the appellants-Revenue and Ms.Tanmayee Rajkumar, learned Advocate for the respondent-Assessee.

4.

At the outset, Ms.Tanmayee Rajkumar submits that issue involved in this appeal is covered by the decision of this Court in The Commissioner of Income Tax and another Vs. M/s. Quest Global Engineering Services Pvt. Ltd.,2 holding the question of law in assessee’s favour.

5.

The said submission is not disputed by Shri Aravind, in his usual fairness.

6.

In view of the above, the following:

2 ITA No.133/2015 DD 15.02.2021

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ITA No. 145 of 2020

ORDER

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

Ms.Tanmayee Rajkumar is permitted to file vakalath for the respondent in four weeks. No costs.

Sd/- JUDGE

Sd/- JUDGE

YN List No.: 1 Sl No.: 70

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