THE COMMISSIONER OF INCOME TAX vs. M/S INDIAN TELEPHONE INDUSTRIES

- 1 - IN THE HIGH COURT OF KARNATAKA AT BANGALORE DATED THIS THE 27TH DAY OF NOVEMBER 2013 P R E S E N T THE HON’BLE MR. JUSTICE N. KUMAR A N D THE HON’BLE MRS. JUSTICE RATHNAKALA INCOME TAX APPEAL NO.652 OF 2007

BETWEEN:

... APPELLANTS

(BY SRI K V ARAVIND, ADV.)

AND:

M/S. INDIAN TELEPHONE INDUSTRIES, NO.45/1, MAGRATH ROAD, BANGALORE.

...RESPONDENT

(BY SRI S PARTHASARATHI, ADV.)

THIS ITA IS FILED UNDER SEC.260-A OF I.T. ACT, 1961, ARISING OUT OF ORDER DATED 29-03- 2007 PASSED IN ITA NO.2573/BNG/2004, FOR THE

- 2 - ASSESSMENT YEAR 1998-99, PRAYING THAT THIS HON'BLE COURT MAY BE PLEASED TO:

I. FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED THEREIN,

II. ALLOW THE APPEAL AND SET ASIDE THE ORDER PASSED BY THE ITAT BANGALORE IN ITA NO.2573/BNG/2004, DATED 29-03-2007 CONFIRM THE ORDERS OF THE APPELLATE COMMISSIONER AND CONFIRM THE ORDER PASSED BY THE JOINT COMMISSIONER OF INCOME TAX(ASSETS), SPECIAL RANGE-II, BANGALORE IN THE INTEREST OF JUSTICE AND EQUITY.

THIS APPEAL IS COMING ON FOR HEARING THIS DAY, N. KUMAR, J., DELIVERED THE FOLLOWING: -

JUDGMENT

This appeal is preferred by the revenue challenging the order passed by the Tribunal holding that excise duty paid during the year should not have been included as a part of the closing stock and therefore, granting relief to the assessee by deleting the quantum of excise duty paid is bad in law.

- 3 - added in the valuation of closing stock as per Section 145A of the Income Tax Act, 1961. Therefore, relief was granted. In that view of the matter, the order passed by the Tribunal is in accordance with law and does not call for any interference. Accordingly, the appeal is dismissed. The substantial question of law is answered in favour of the assessee and against the revenue.

Sd/- JUDGE

Sd/- JUDGE

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