THE COMMISSIONER OF INCOME-TAX CIT(A) vs. M/S. JINDAL ALUMINIUM LTD.,

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ITA/5/2011HC KarnatakaKAHC01011996201119 March 2020Bench: ALOK ARADHE,M.NAGAPRASANNA4 pages
AI SummaryDismissed

What did the High Court hold?

The Tribunal held that only profit-making power generating units should be considered for deduction under Section 80IA, not the loss-making unit. The High Court agreed with this interpretation.

What were the facts?

The Revenue appealed against an ITAT order concerning the deduction under Section 80IA of the Income Tax Act. The core issue was whether to consider only profit-making units or all units, including loss-making ones, for calculating the eligible business income.

What were the issues?

Whether loss-making units should be excluded when computing eligible business income for deduction under Section 80IA of the Income Tax Act.

Which sections of the Income-tax Act were involved?

Section 80IA

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

DATED THIS THE 19TH DAY OF MARCH 2020

PRESENT

THE HON’BLE MR. JUSTICE ALOK ARADHE

AND

THE HON’BLE MR. JUSTICE M. NAGAPRASANNA

I.T.A. NO.5 OF 2011

BETWEEN:

1.

THE COMMISSIONER OF INCOME-TAX CIT(A)

C.R. BUILDING, QUEENS ROAD

BANGALORE.

2.

THE ASST. COMMISSIONER OF INCOME-TAX

CIRCLE-11(5), C.R. BUILDING

QUEENS ROAD, BANGALORE.

... APPELLANTS (BY MR. K.V. ARAVIND, ADV.)

AND:

M/S. JINDAL ALUMINIUM LTD., JINDAL NAGAR TUMKUR ROAD BANGALORE-560073. ... RESPONDENT (BY MS. JINITA CHATTERJEE, ADV., FOR MR. S. PARTHASARATHI, ADV.,) - - -

THIS I.T.A. IS FILED UNDER SECTION 260-A OF I.T. ACT, 1961 ARISING OUT OF ORDER DATED 4.9.2009 PASSED IN ITA NO.448/BANG/2009, FOR THE ASSESSMENT

YEAR 2006-07, PRAYING TO FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED THEREIN. ALLOW THE APPEAL AND SET ASIDE THE ORDERS PASSED BY THE ITAT, BANGALORE IN ITA NO.448/BANG/2009 DATED 4/9/2009 AND CONFIRM THE ORDER OF THE APPELLATE COMMISSIONER CONFIRMING THE ORDER PASSED BY THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-11(5), BANGALORE, IN THE INTEREST OF JUSTICE AND EQUITY & ETC.

THIS I.T.A. COMING ON FOR HEARING, THIS DAY, ALOK ARADHE J., DELIVERED THE FOLLOWING:

JUDGMENT

Mr.K.V.Aravind, learned counsel for the revenue. Smt.Jinitha Chatterjee, learned counsel for the respondent. Appeal is admitted for hearing. With consent of the learned counsel for the parties, the same is heard finally.

2.

This appeal under Section 260-A of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’, for short) which has been filed by the revenue, was admitted by a Bench of this Court by order dated 26.07.2011 on the following substantial question of law:

“Whether the Tribunal was correct in holding that only the three profit making power generating units of the assessee should be taken into account and not the loss making unit in computing the total income of the assessee for its eligible business to allow deduction u/s 80IA of the Act”

3.

When the matter was taken up today, learned counsel for the respondent submitted that the issue involved in this appeal is squarely covered by an order dated 27.05.2011 passed in the case of COMMISSIONER OF INCOME TAX AND ANOTHER Vs. SWARNAGIRI WIRE INSULATIONS P. LTD.

(2012) 349 ITR 245 (KAR).

4.

In view of the aforesaid submission, learned counsel for the revenue was unable to dispute the aforesaid legal proposition.

5.

Therefore, the substantial question of law is answered against the revenue. In the result, the appeal is dismissed.

Sd/- JUDGE

Sd/- JUDGE

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