THE COMMISSIONER OF INCOME TAX vs. NIKE INC.,

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ITA/346/2009HC KarnatakaKAHC01041925200907 March 2013Bench: B.MANOHAR,N.KUMAR3 pages
AI SummaryDismissed

What did the High Court hold?

The Tribunal was justified in setting aside the assessment orders passed under Section 263. This was because in a connected matter, it was held that the assessee had no tax liability, making the exercise of power under Section 263 unjustified.

What were the facts?

The Commissioner of Income Tax initiated proceedings under Section 263 of the Income Tax Act, leading to revised assessment orders. The assessee appealed these orders.

What were the issues?

Whether the exercise of power under Section 263 of the Income Tax Act was justified when the assessee had no tax liability.

Which sections of the Income-tax Act were involved?

Section 263

AI-generated summary — verify with the full judgment below

ITA 346/2009

IN THE HIGH COURT OF KARNATAKA, BANGALORE

DATED THIS THE 07TH DAY OF MARCH 2013

PRESENT:

THE HON'BLE MR.JUSTICE N.KUMAR

AND

THE HON'BLE MR.JUSTICE B.MANOHAR

INCOME-TAX APPEAL No.346/2009

BETWEEN:

1.

THE COMMISSIONER OF INCOME-TAX,

INTERNATIONAL TAXATION,

NO.14/3A, 6TH FLOOR,

RASHTROTHANA BHAVAN,

NRUPATHUNGA ROAD,

BANGALORE – 560 001.

2.

THE ASSISTANT COMMISSIONER OF INCOME TAX, INTERNATIONAL TAXATION,

NO.14/3A, 6TH FLOOR,

RASHTROTHANA BHAVAN,

NRUPATHUNGA ROAD,

BANGALORE – 560 001.

… APPELLANTS

(By SRI K.V.ARAVIND, Advocate)

ITA 346/2009

2 AND:

NIKE Inc., INDIA LIAISON OFFICE, 49/1, KHANIJA BHAVAN, RACE COURSE ROAD, BANGALORE – 560 001.

… RESPONDENT

(By Sri KUMAR & KUMAR, Sr. COUNSEL ALONG WITH Sri T.SURYANARAYANA, Adv. FOR M/s. KING & PATRIDGE)

THIS ITA IS FILED UNDER SECTION 260-A OF I.T.ACT, 1961 ARISING OUT OF ORDER DATED 02.01.2009 PASSED IN I.T.A NO.1205/BNG/2008, FOR THE ASSESSMENT YEAR 1999-2000, PRAYING THAT THIS HON’BLE COURT MAY BE PLEASED TO FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED THEREIN, ETC.

THIS ITA COMING ON FOR ADMISSION, THIS DAY, N.KUMAR, J., DELIVERED THE FOLLOWING:

J U D G M E N T

Consequent to the order passed under Section 263 of the Act, assessment orders have been passed. The Tribunal was justified in setting aside the said order as in the connected matter it is held that there

ITA 346/2009

3 is no liability to pay tax on the part of the assessee and therefore exercise of power under Section 263 was not justified. Accordingly, the appeals are dismissed.

Sd/- JUDGE

Sd/-

JUDGE

dh*

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