BIOCON LIMITED vs. THE DEPUTY

1 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 12TH DAY OF JANUARY 2021 PRESENT THE HON’BLE MR. JUSTICE ALOK ARADHE AND THE HON’BLE MR. JUSTICE NATARAJ RANGASWAMY I.T.A. NO.415 OF 2014 BETWEEN: BIOCON LIMITED 20TH KM, HOSUR ROAD ELECTRONICS CITY P.O. BANGALORE-560100 REP. HEREIN BY ITS DEPUTY GENERAL MANAGER TAX & COMPLIANCE MR. B. SHIVADUTT. .... APPELLANT (BY MR. SURYANARAYANA T, ADVOCATE) AND: 1. THE DEPUTY COMMISSIONER OF INCOME TAX

LARGE TAXPAYERS UNIT

JSS TOWERS, 100 FEET RING ROAD

BANASHANKARI 3RD STAGE

BANGALORE-560085. 2. THE COMMISSIONER OF INCOME-TAX

LTU, JSS TOWERS, 100 FEET RING ROAD

BANASHANKARI 3RD STAGE

BANGALORE-560085. ... RESPONDENTS (BY MR. K.V. ARAVIND, ADVOCATE) - - -

2 THIS I.T.A. IS FILED UNDER SEC. 260-A OF INCOME TAX ACT 1961, ARISING OUT OF ORDER DATED 30.04.2014 PASSED IN ITA NO.368/BANG/2010 FOR THE ASSESSMENT YEAR 2003-04, PRAYING TO: (i) FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED ABOVE. (ii) ALLOW THE APPEAL AND SET ASIDE THE ORDER OF THE ITAT DATED 30.04.2014 IN ITA NO.368/BANG/2010 (ANNEXURE- 'D') TO THE EXTENT QUESTIONED HEREIN. THIS I.T.A. COMING ON FOR HEARING, 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 assessee. The subject matter of the appeal pertains to the Assessment Year 2003-04. The appeal was admitted by a Bench of this Court vide order dated 01.12.2014 on the following substantial questions of law: "1. The Tribunal was correct in upholding the reopening of assessment under Section 147 of the Act, although the necessary conditions therefor were not satisfied? 2. The Tribunal was right in holding that the Appellant was not entitled to deduction under Section 35(2AB) of the Act to the extent the expenses eligible for deduction under the said provision pertained to a unit entitled for deduction under Section 10B of the Act, more

3 so when no disallowance was made by the Assessing Officer under the said provision in the assessment order passed by him? 3. The Tribunal was right in holding that the weighted deduction under Section 35(2AB) would not be available to the Appellant while computing the income of the unit eligible for relief under Section 10B of the Act? 4. The Tribunal was right in holding that Section 14A of the Act was applicable to the appellant although it had no exempt income?" 2. For the reasons assigned by us in ITA No.416/2014 passed today, the order dated 30.04.2014 insofar as it pertains to the finding that the assessee is not entitled to claim deduction under Section 35(2AB) of the Act is hereby quashed. In the result, the appeal is disposed of. Sd/- JUDGE Sd/- JUDGE RV