PRINCIPAL COMMISSIONER OF INCOME TAX-4 vs. M/S JEANS KNIT PVT LTD

1 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 27TH DAY OF JANUARY 2022 PRESENT THE HON’BLE MR. JUSTICE ALOK ARADHE AND THE HON’BLE MR. JUSTICE M.G.S. KAMAL I.T.A. NO.91 OF 2021 BETWEEN: 1. PRINCIPAL COMMISSIONER OF INCOME TAX-4 BMTC COMPLEX, KORAMANGLA BENGALURU. 2. DEPUTY COMMISSIONER OF INCOME TAX CIRCLE 11 (5), NO.14/3, 5TH FLOOR NRUPATHUNGA ROAD BENGALURU-560 001. .... APPELLANTS (BY MR. E.I. SANMATHI, ADVOCATE) AND: M/S. JEANS KNIT PVT LTD., NO.21-E-1, 2ND PHASE INDUSTRIAL AREA PEENYA BENGALURU-560 058 PAN AABCJ 4513 B. ... RESPONDENT - - - THIS I.T.A. IS FILED UNDER SEC. 260-A OF INCOME TAX ACT 1961, ARISING OUT OF ORDER DATED 12.07.2019 PASSED

2 IN ITA NO.1353/BANG/2014 FOR THE ASSESSMENT YEAR 2011- 12, PRAYING TO: (i) DECIDE THE FOREGOING QUESTION OF LAW AND/OR SUCH OTHER QUESTIONS OF LAW AS MAY BE FORMULATED BY THE HON'BLE COURT AS DEEMED FIT. (II) SET ASIDE THE APPELLATE ORDER DATED 12.07.2019 PASSED BY THE INCOME TAX APPELLATE TRIBUNAL, 'C' BENCH, BENGALURU, IN APPEAL PROCEEDINGS ITA NO.1353/BANG/2014 (ANNEXURE-A) FOR THE ASSESSMENT YEAR 2011-12 AS SOUGHT FOR IN THIS APPEAL; AND TO GRANT SUCH OTHER RELIEF AS DEEMED FIT, IN THE INTEREST OF JUSTICE. THIS I.T.A. COMING ON FOR ORDERS, THIS DAY, ALOK ARADHE J., DELIVERED THE FOLLOWING: JUDGMENT This appeal under Section 260-A of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’, for short) has been filed by the revenue against the order dated 12.07.2019 passed by the Income Tax Appellate Tribunal. The subject matter of the appeal pertains to the Assessment Year 2011-12. The appeal is admitted vide order passed today on the following substantial questions of law: "1. Whether on the facts and circumstances of the case, the Tribunal is justified in allowing the appeal of the assessee regarding allowance of claim made under Section 10B of

3 the Act despite the fact that the assessee's business structure is formed under reconstruction of business or using the existing amenities of business for a new business, which is void as per the provisions of section 10B of the Act as clearly brought out by the assessing Officer in his order and as such order passed by Tribunal is perverse in nature? 2. Whether on the facts and circumstances of the case, the Tribunal is justified in setting aside the issue of claim made by the assessee for giving enhanced deduction under section 10B of the Act where the assessing officer has clearly brought out the fact that no additional claim can be allowed to the assessee unless the same is claimed in the return of income?" 2. We have heard the learned counsel for the revenue at length. Admittedly, the aforesaid substantial questions of law have been answered in favour of the assessee by this Court vide judgment dated 09.10.2020 passed in ITA No.559/2015 and other connected matters and against the judgment of this Court, special leave petition has already been dismissed.

4 3. For the reasons assigned in the aforesaid judgment, the substantial questions of law involved in this appeal are answered in the negative and against the revenue. In the result, we do not find any merit in this appeal. The same fails and is hereby dismissed. Sd/- JUDGE Sd/- JUDGE RV