PR. COMMISSIONER OF INCOME TAX-1, vs. M/S ALLSTATE INDIA PRIVATE LIMITED

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ITA/669/2023HC KarnatakaKAHC01057396202312 August 2024Bench: S.G.PANDIT,C.M. POONACHA3 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that the questions of law raised in the appeal were identical to those decided by a Full Bench of the same court in a previous case. Therefore, the appeal was dismissed based on that precedent.

What were the facts?

The Revenue appealed against an ITAT order that allowed deduction of interest income earned from surplus funds parked in FDs under Section 10AA of the Income Tax Act. The Revenue argued that this interest income was not derived from export activity.

What were the issues?

Whether interest income earned from bank deposits is eligible for deduction under Section 10AA, and if such income is derived from export activity.

Which sections of the Income-tax Act were involved?

Section 10AA

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(1)Show list

Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.

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NC: 2024:KHC:32506-DB ITA No. 669 of 2023

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 12TH DAY OF AUGUST, 2024 PRESENT THE HON'BLE MR JUSTICE S.G.PANDIT AND THE HON'BLE MR JUSTICE C.M. POONACHA INCOME TAX APPEAL NO. 669 OF 2023 BETWEEN:

1.

PR. COMMISSIONER OF INCOME TAX-1, BMTC COMPLEX, KORMANGALA, BANGALORE

2.

THE DEPUTY COMMISSIONER INCOME TAX, CIRCLE -1(1)(1), BMTC BUILDING, KORAMANGALA, BANGALORE. …APPELLANTS (BY SRI SANMATHI E I., ADVOCATE) AND:

M/S ALLSTATE INDIA PRIVATE LIMITED 7TH FLOOR, BUILDING NO.1, RMZ ECO WORLD, BELLANDUR SO DEVARABESANHALLI, VARTHUR HOBLI, BENGALURU - 560103. …RESPONDENT

THE APPELLANT HAS FILED THE ABOVE ITA / INCOME TAX APPEAL UNDER SEC.260-A OF INCOME TAX ACT 1961, ARISING OUT OF ORDER DATED 31/05/2023 PASSED IN ITA NO. 257/BANG/2023, FOR THE ASSESSMENT YEAR 2018-2019

Digitally signed by BHARATHI S Location: HIGH COURT OF KARNATAKA

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NC: 2024:KHC:32506-DB ITA No. 669 of 2023

PRAYING TO: (1) DECIDE THE FOREGOING QUESTION OF LAW AND/OR SUCH OTHER QUESTIONS OF LAW AS MAY BE FORMULATED BY THE HONBLE COURT AS DEEMED FIT AND SET ASIDE THE APPELLATE ORDER DATED 31/05/2023 PASSED BY THE INCOME TAX APPELLATE TRIBUNAL, B BENCH, BANGALORE, AS SOUGHT FOR, IN THE RESPONDENT - ASSESSEES CASE, IN APPEAL PROCEEDINGS IN ITA NO.257/BANG/2023 (ANNEXURE A) FOR A.Y. 2018-2019 (ANNEXURE A).

THIS APPEAL, COMING ON FOR ORDERS, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE S.G.PANDIT AND HON'BLE MR JUSTICE C.M. POONACHA ORAL JUDGMENT (PER: HON'BLE MR JUSTICE S.G.PANDIT)

This appeal is filed questioning the order dated 31.05.2023 passed by the Income Tax Appellate Tribunal, 'B' Bench, Bengaluru in ITA No.257/Bang/2023 (Annexure-A). The appeal was admitted to examine the following substantial questions of law raised in the appeal: i) Whether on the facts and on the circumstances of the case, the Tribunal was justified in holding that interest income earned from surplus funds parked in FD's of bank are eligible for deduction under Section 10AA of the Act by following decision of this

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NC: 2024:KHC:32506-DB ITA No. 669 of 2023

Hon'ble Court in case of CIT Vs. Hewlett Packard Soft Ltd? ii) Whether the Tribunal was right in law in not appreciating that interest income earned from bank deposits are not derived from export activity of assessee and as such, conditions for granting relief under Section 10AA are not satisfied in present case of facts?"

2.

On going through the appeal papers, it is seen that identical questions of law are decided by the Full Bench of this Court in the case of CIT Vs. Hewlett Packard Soft Limited reported in (2017) 87 taxmann.com 182. 3. As the questions of law raised in this appeal are already answered by the Full Bench of this Court in the decision referred supra, this appeal stands dismissed in terms of the above referred decision.

Sd/- (S.G.PANDIT) JUDGE

Sd/- (C.M. POONACHA) JUDGE

DH List No.: 1 Sl No.: 18

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