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ITA No. 309 of 2019 C/W ITA No. 310 of 2019
IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 6TH DAY OF DECEMBER, 2022 PRESENT THE HON'BLE MR. JUSTICE P.S.DINESH KUMAR AND THE HON'BLE MR. JUSTICE T.G.SHIVASHANKARE GOWDA INCOME TAX APPEAL NO. 309 OF 2019 C/W INCOME TAX APPEAL NO. 310 OF 2019
IN I.T.A NO. 309 OF 2019
BETWEEN:
THE PR. COMMISSIONER
OF INCOME-TAX, CIT(A)
CENTRAL CIRCLE
C.R.BUILDING
QUEEN'S ROAD
BENGALURU-560 001.
THE ASST. COMMISSIONER
OF INCOME-TAX
CENTRAL CIRCLE-2(1)
C.R.BUILDING
QUEEN'S ROAD
BENGALURU-560 001. …APPELLANTS
(BY SHRI. K.V.ARAVIND, STANDING COUNSEL)
AND:
M/s. KBD SUGAR & DISTILLERIES LTD. NO.17, SANKEY ROAD BENGALURU-560 020. PAN:AAACK5851A …RESPONDENT
(BY SHRI. A.SHANKAR, SENIOR ADVOCATE FOR SHRI. M.LAVA, ADVOCATE)
Digitally signed by ANUSHA V Location: High Court Of Karnataka
ITA No. 309 of 2019 C/W ITA No. 310 of 2019
THIS INCOME TAX APPEAL IS FILED UNDER SEC.260-A OF INCOME TAX ACT, 1961 ARISING OUT OF ORDER DATED:14/09/2018 PASSED IN ITA NO.172/BANG/2017, FOR THE ASSESSMENT YEAR 2012-2013, PRAYING TO FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATE THEREIN AND ETC.
IN I.T.A NO. 310 OF 2019
BETWEEN:
THE PR. COMMISSIONER
OF INCOME-TAX, CIT(A)
CENTRAL CIRCLE
C.R.BUILDING
QUEEN'S ROAD
BENGALURU-560 001.
THE ASST. COMMISSIONER
OF INCOME-TAX
CENTRAL CIRCLE-2(1)
C.R.BUILDING
QUEEN'S ROAD
BENGALURU-560 001. …APPELLANTS
(BY SHRI. K.V.ARAVIND, STANDING COUNSEL)
AND:
M/s. KBD SUGAR & DISTILLERIES LTD. NO.17, SANKEY ROAD BENGALURU-560 020. PAN:AAACK 5851A. …RESPONDENT
(BY SHRI. A.SHANKAR, SENIOR ADVOCATE FOR SHRI. M.LAVA, ADVOCATE)
THIS INCOME TAX APPEAL IS FILED UNDER SEC.260-A OF INCOME TAX ACT 1961, ARISING OUT OF ORDER DATED:14/09/2018 PASSED IN ITA NO.975/BANG/2017, FOR THE ASSESSMENT YEAR 2013-2014, PRAYING TO FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED THEREIN AND ETC.
THESE INCOME TAX APPEALs, COMING ON FOR FINAL HEARING, THIS DAY, P.S.DINESH KUMAR J., DELIVERED THE FOLLOWING:
ITA No. 309 of 2019 C/W ITA No. 310 of 2019
JUDGMENT
ITA No.309/2019 by the Revenue challenging the order dated September 14, 2018, in ITA No.172/Bang/2017 for the A.Ys. 2012-13 and ITA No.310/2019 by the Revenue challenging the order dated September 14, 2018, in ITA No.975/Bang/2017 for the A.Ys. 2013-14 have been admitted to consider the following questions of law: "1. Whether on the facts and in the circumstances of the case, the Tribunal is correct in law to hold that assessee had applied the excess non-interest bearing funds for giving interest free loans to sister concerns even in the back ground of assessee not establishing the same? 2. Whether on the facts and in the circumstances of the case, the Tribunal is correct in law to hold that assessee's interest expenditure should be allowed even in the back ground that assessee had failed to establish that it had applied the excess non-interest bearing funds for giving interest free loans to sister concerns? 3. Whether on the facts and in the circumstances of the case, the Tribunal is correct in law to hold that assessee's interest expenditure should be allowed even in the back ground that assessee had failed to establish that it had applied the excess non-interest bearing funds for giving interest free loans to sister concerns relying on the assessee's own case in assessment years 2008-09 to 2010-11 even though the matter has not reached finality? 4. Whether on the facts and in the circumstances of the case, the Tribunal is correct in
ITA No. 309 of 2019 C/W ITA No. 310 of 2019
law in not following Rule 8D r.w.s. 14A even though assessee has earned exempt income? 5. Whether on the facts and in the circumstances of the case the Tribunal is correct in law in holding that Sec.14A r.w. Rule 8D is not applicable in this case? 6. Whether on the facts and in the circumstances of the case, the Tribunal is correct in law in holding that section 14A r.w.Rule 8D is not applicable in this case relying on the assessee's own case in AYs 2008-09 to 2010-11 even though the matter has not reached finality?"
Heard Shri K.V.Aravind, learned Senior Standing Counsel for the Revenue and Shri A.Shankar, learned Senior Advocate for the assessee.
At the outset, Shri A.Shankar, learned Senior Advocate submitted that questions No.1, 2 and 3 are answered in favour of the assessee and against the Revenue in The Pr.Commissioner of Income-Tax and Another Vs. M/s.KBD Sugars & Distilleries Ltd1. Questions No.4, 5 and 6 are answered in favour of the assessee and against the Revenue in The Pr.Commissioner of Income-Tax and Another Vs. M/s.KBD Sugars & Distilleries Ltd2.
1 ITA No.553/2016 decided on 14.12.2021 2 ITA No.555/2016 decided on 14.12.2021
ITA No. 309 of 2019 C/W ITA No. 310 of 2019
Shri K.V.Aravind, learned Senior Standing Counsel for the Revenue does not dispute the above submission made by Shri A.Shankar.
Hence, the following; ORDER
(i) Questions of law are answered in favour of
the assessee and against the Revenue; and
(ii) Appeals dismissed.
No costs.
Sd/- JUDGE
Sd/- JUDGE