THE COMMR OF INCOME TAX vs. M/S CHESLIND TEXTILES LTD

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.1405 OF 2006 BETWEEN: 1. THE COMMISSIONER OF INCOME TAX CENTRAL CIRCLE C R BUILDING QUEENS ROAD BANGALORE 2. THE COMMISSIONER OF INCOME TAX BANGALORE – 1 C R BUILDING, QUEENS ROAD BANGALORE ...APPELLANTS (BY SRI:G KAMALADHAR, ADV) AND: M/S CHESLIND TEXTILES LTD., NO.40, 100 FT ROAD IV BLOCK, KORMANGALA BANGALORE – 560 034 ...RESPONDENT (BY SRI:S PARTHASARATHI, ADV)

2 THIS ITA IS FILED UNDER SECTION 260A OF IT ACT, 1961 ARISING OUT OF ORDER DATED 26.05.2006 PASSED IN ITA NO.152/BANG/2002 FOR THE ASSESSMENT YEAR 1997-98 PRAYING TO FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED THEREIN AND TO ALLOW THE APPEAL AND SET ASIDE THE ORDERS PASSED BY THE ITAT, BANGALORE IN ITA NO.152/BANG/2002 DATED 26.05.2006 AND CONFIRM THE ORDER OF THE APPELLATE COMMISSIONER CONFIRMING THE ORDER PASSED BY THE COMMISSIONER OF INCOME TAX, BANGALORE-1 IN THE INTEREST OF JUSTICE AND EQUITY. 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 Tribunal was correct in holding that income claimed of Rs.7,69,000/- received, profit on sale of assets of Rs.9.65 lakhs and profit on sale of import entitlement of Rs.28.28 lakhs is entitled to deduction u/s.10B of the Act despite the same not been linked to export of manufactured goods from export oriented Section 10B units?” 2. This Court in the case of The Commissioner of Income Tax Vs M/s Wipro Ltd., in ITA No.507/2002 dated 25.08.2010 has answered the substantial

3 question of law framed therein against the revenue. In the present appeal also, similar question of law would arise for consideration. Accordingly, the same is answered against the revenue. Appeal is dismissed. Sd/- JUDGE Sd/- JUDGE *bgn/-