THE COMMISSIONER OF INCOME TAX vs. M/S.INDO AMERICAN EXPORTS

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ITA/577/2008HC KarnatakaKAHC01032129200803 September 2012Bench: B.MANOHAR,K.SREEDHAR RAO3 pages
AI SummaryDismissed

What did the High Court hold?

The High Court, following its prior decision in Commissioner of Income Tax Vs Namdhari Seeds (P) Ltd., held that the assessee's claim was incorrect. The substantial question of law was answered in favor of the revenue.

What were the facts?

The assessee claimed that only 10% of their total agricultural income should be assessed as business income, with the remainder treated as agricultural income eligible for deductions. The revenue authorities disagreed with this apportionment.

What were the issues?

The primary issue was whether only 10% of agricultural income could be treated as business income, with the rest eligible for deductions as agricultural income.

Which sections of the Income-tax Act were involved?

Section 10(1)

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Cases cited in this judgment(1)Show list

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1 IN THE HIGH COURT OF KARNATAKA AT BANGALORE DATED THIS THE 3RD DAY OF SEPTEMBER 2012 PRESENT THE HON’BLE MR. JUSTICE K SREEDHAR RAO AND THE HON’BLE MR.JUSTICE B MANOHAR ITA NO.577 OF 2008 BETWEEN: 1. THE COMMISSIONER OF INCOME TAX C R BUILDING, QUEENS ROAD BANGALORE 2. THE ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE – 4(1) C R BUILDING, QUEENS ROAD BANGALORE. ...APPELLANTS (BY SRI:K V ARAVIND, ADV) AND: M/S INDO AMERICAN EXPORTS NO.38/1, 30TH CROSS III MAIN, 7TH BLOCK JAYANAGAR BANGALORE – 560 082 ...RESPONDENT (BY SRI:S PARTHASARATHI, ADV) THIS ITA FILED UNDER SECTION 260-A OF IT ACT, 1961 ARISING OUT OF THE ORDER DATED 18.12.2007 PASSED IN ITA NO.103/BNG/2007 FOR THE ASSESSMENT

2 YEAR 1997-98 PRAYING TO FORMULATE THE SUBSTANTIAL QUESTION OF LAW STATED THEREIN AND TO ALLOW THE APPEAL AND SET ASIDE THE ORDER PASSED BY THE ITAT BANGALORE IN ITA NO.103/BNG/2007 DATED 18.12.2007 AND CONFIRM THE ORDERS OF THE APPELLATE COMMISSIONER AND ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE –4(1), BANGALORE. THIS ITA COMING ON FOR HEARING BEFORE THE COURT THIS DAY, K SREEDHAR RAO, J., MADE THE FOLLOWING:- J U D G M E N T The following substantial question of law is framed for consideration: “Whether the Appellate Authorities was correct in holding that the only 10% of the total agricultural income should be assessed as business income and the remaining income is to be treated as agricultural income and deduction U/s Chapter VIA of the Act, is to be allowed?” 2. In view of the decision of this Court in the case of Commissioner of Income Tax Vs Namdhari Seeds (P) Ltd., reported in (2011) 203 Taxman 565 (Kar) dated 24.10.2011, the substantial question of law framed is answered in favour of the revenue.

3 3. Learned Counsel for the respondent assessee submits that they have filed an appeal against the decision in Namdhari’s case before the Supreme Court and there is no stay granted. 4. Hence, the assessee is directed to remit the tax to the revenue and claim refund if he succeeds in the appeal in SLP. Appeal is disposed of accordingly. Sd/- JUDGE Sd/- JUDGE *bgn/-

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