THE PR. COMMISSIONER OF vs. M/S HINDUSTHAN INFRASTRUCTURE

PDF · subscribers
ITA/60/2019HC KarnatakaKAHC01034210201923 January 2023Bench: P.S.DINESH KUMAR,G BASAVARAJA4 pages
AI SummaryDismissed

What did the High Court hold?

The High Court dismissed the appeal by the Revenue. The substantial question of law was answered in favour of the assessee, upholding the ITAT's decision.

What were the facts?

The Revenue appealed against an ITAT order that allowed the assessee's claim regarding disallowance under Section 14A. The assessee argued that the issue was covered by a previous High Court decision.

What were the issues?

Whether the disallowance under Section 14A was warranted despite the assessee having investments capable of earning exempt income, considering past and future years and CBDT Circular No.5/2014.

Which sections of the Income-tax Act were involved?

Section 14A

AI-generated summary — verify with the full judgment below

- 1 -

ITA No. 60/2019

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 23RD DAY OF JANUARY, 2023 PRESENT THE HON'BLE MR JUSTICE P.S.DINESH KUMAR AND THE HON'BLE MR JUSTICE G BASAVARAJA INCOME TAX APPEAL NO. 60 OF 2019

BETWEEN:

1.

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

2.

THE ASST. COMMISSIONER OF INCOME-TAX, CIRCLE-3(1)(2) 2ND FLOOR, BMTC BUILDING 80 FEET ROAD, KORMANGALA BENGALURU-560 095. …APPELLANTS (BY SHRI. K.V. ARAVIND, SENIOR STANDING COUNSEL)

AND:

M/S HINDUSTHAN INFRASTRUCTURE PROJECTS AND ENGINEERING PVT. LTD. JUPITER INNOVATION CENTRE-54 RICHMOND ROAD BENGALURU-560 025. PAN: AAACR 8981Q. …RESPONDENT

(BY SMT. JINITHA CHATTERJEE, ADVOCATE FOR SHRI. S. PARTHASARATHI, ADVOCATE)

Digitally signed by YASHODHA N Location: HIGH COURT OF KARNATAKA

- 2 -

ITA No. 60/2019

THIS ITA IS FILED UNDER SEC.260-A OF INCOME TAX ACT 1961, ARISING OUT OF ORDER DATED: 07/09/2018 PASSED IN ITA NO.1247/BANG/2018, FOR THE ASSESSMENT YEAR 2014-2015, PRAYING TO FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED THEREIN AND ALLOW THE APPEAL BY SETTING ASIDE THE ORDERS PASSED BY THE INCOME TAX APPELLATE TRIBUNAL, BENGALURU IN ITA NO. 1247/BANG/2018 DATED: 07/09/2018 FOR ASSESSMENT YEAR 2014-2015 ANNEXURE-C AND CONFIRM THE ORDER OF THE APPELLATE COMMISSIONER CONFIRMING THE ORDER PASSED BY THE ASST. COMMISSIONER OF INCOME TAX, CIRCLE-3(1)(2), BENGALURU AND ETC

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

JUDGMENT

This appeal by the Revenue challenging the order dated 07.09.2018 in ITA No.1247/Bang/2018 passed by the ITAT1, "C" Bench, Bangalore, has been admitted to consider the following question of law: “Whether on the facts and circumstances of the case and in law, the Tribunal was right in holding that the disallowance made by the assessing officer

1 Income tax Appellate Tribunal, Bengaluru Bench

- 3 -

ITA No. 60/2019

under Section 14A of the Act is not warranted ignoring the fact that the assessee had investments which are capable of earning exempt income in the past as well as for the future years and ignoring CBDT Circular No.5/2014 dated 11.02.2014?”

2.

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

3.

At the outset, Ms.Jinitha Chatterjee 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.

4.

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

2 ITA No.133/2015 DD 15.02.2021

- 4 -

ITA No. 60/2019

5.

In view of the above, the following:

(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

YN List No.: 1 Sl No.: 44

More judgments on Section 14A

All 15,875 judgments and leading authorities on Section 14A →

Recent GST High Court judgments

Search GST case law →