THE COMMISSIONER OF INCOME TAX vs. M/S WIPRO GE MEDICAL SYSTEMS PVT LTD

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ITA/926/2007HC KarnatakaKAHC01058334200705 November 2012Bench: B.V.PINTO,K.SREEDHAR RAO3 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that the Tribunal's finding regarding non-application of mind and lack of opportunity was correct. The court also found that the Supreme Court decisions relied upon by the ITAT were applicable to the assessment year in question.

What were the facts?

The Revenue appealed against an ITAT order that held the assessment invalid due to non-application of mind by the Assessing Officer and lack of proper opportunity to the assessee before appointing a Special Auditor. The ITAT also relied on Supreme Court decisions that the Revenue argued were not applicable.

What were the issues?

Whether the appointment of a Special Auditor was valid and if the assessment was invalid based on the ITAT's findings. The applicability of Supreme Court judgments to the assessment year was also a key issue.

Which sections of the Income-tax Act were involved?

Section 142(2)

AI-generated summary — verify with the full judgment below

1 IN THE HIGH COURT OF KARNATAKA AT BANGALORE DATED THIS THE 05TH DAY OF NOVEMBER 2012 PRESENT THE HON'BLE MR. JUSTICE K.SREEDHAR RAO AND THE HON'BLE MR. JUSTICE B.V.PINTO ITA No.926/2007 BETWEEN:- 1 THE COMMISSIONER OF INCOME TAX, C.R. BUILDING, QUEENS ROAD, BANGALORE.

2 THE DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-1(3), C.R. BUILDING, QUEENS ROAD, BANGALORE. APPELLANTS (BY SRI K.V. ARAVIND, ADVOCATE) AND:- M/S. WIPRO GE MEDICAL SYSTEMS PVT. LTD., PLOT NO.4, KADUGODI INDUSTRIAL AREA, BANGALORE – 560067. RESPONDENT (BY SMT. S.R. ANURADHA, ADVOCATE)

This ITA is filed u/S.260-A of I.T.Act, 1961 arising out of Order dated 27-07-2007 passed in ITA No. 485/Bang/2006 for the Assessment Year 2001-2002, praying that this Hon'ble Court may be pleased to: (i) formulate the substantial questions of law stated therein and (ii) allow the appeal and set aside the Order passed by the ITAT, passed in ITA 485/Bang/2006 dated 27-07-2007 and confirm the order of the Appellate Commissioner and the order passed by the Deputy Commissioner of Income Tax, Bangalore. This ITA is coming on for final hearing this day, SREEDHAR RAO, J., delivered the following: JUDGMENT In this appeal, the following question of law is framed for consideration: 1. Whether the Tribunal was correct in holding that there was non-application of mind by the Assessing Officer and proper opportunity was not given to the Assessee before appointment of Special Auditor under Section 142(2) of the Act and consequently the assessment was invalid despite there being application of mind and an opportunity being given and consequently recorded a perverse finding? 2. Whether the Tribunal was correct in holding that in view of the law declared by the Apex Court in Rajesh Kumar & Others Vs. Dy.C.I.T. (2006) 287

3 I.T.R. 91 and West Bengal State Co-operative Bank Vs. J.C.I.T. (2004) 267 I.T.R 345 the Assessment passed on 10.11.2004 was invalid when the law declared was prospective in effect and not applicable to the current assessment year? In view of the decision of this Court in I.T.A. No.196/2008, the question of law is answered against the revenue. The Appeal is dismissed. Sd/- JUDGE Sd/- JUDGE psg*

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