PCIT(A) vs M/S Kbd Sugars and Distilleries… | Karnataka High Court 2021

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 14TH DAY OF DECEMBER, 2021 PRESENT

THE HON’BLE MRS. JUSTICE S.SUJATHA AND

THE HON’BLE MR. JUSTICE S.VISHWAJITH SHETTY

I.T.A.No.554/2016 BETWEEN: 1. The Pr. Commissioner of Income-Tax, CIT(A)

5th floor, BMTC Building, 80 feet road, Kormangala,

Bangalore-560095.

The Asst. Commissioner of Income-Tax,

Circle-11(5), Present address

Circle-4(1)(1),

2nd floor, BMTC Building,

80 feet road, Kormangala,

Bangalore-560095.

… APPELLANTS

(By Sri K.V.Aravind, Adv.)

AND:

M/s. KBD Sugars & Distilleries Ltd., No.17, Sankey Road, Bangalore-560020.

… RESPONDENT

(By Sri V.Chandrashekar, for Sri M.Lava, Adv.)

This ITA is filed under Section 260-A of the Income Tax Act 1961, praying to set aside the orders passed by the ITAT, Bangalore, in ITA No.959/Bang/2013 dated 05.02.2016

confirming the order of the Appellate Commissioner and confirm the order passed by the Assistant Commissioner of Income Tax, Circle-4(1)(1), Bengaluru.

This appeal coming on for Final Hearing, this day, S.Sujatha J., delivered the following:

JUDGMENT

This appeal has been admitted to consider the substantial questions of law at paras VI(1) and VI(3) framed in the appeal memorandum. However, learned Counsel for the revenue submitted that the appeal could be confined to consider only substantial question of law at para VI(2) framed in the appeal memorandum, which reads as under: "Whether, on the facts and in the circumstances of the case, the Tribunal was justified in deleting the addition made under Section 40A(2) of the Act by holding that there is no reason to interfere with the findings of the CIT(A) that the assessee is having its own free fund which is sufficient for advance the interest free loan to the sister concern even though the assessee has diverted the funds which has been established by the assessing authority?"

The said submission is placed on record. Appeal is confined to substantial question of law No.VI(2). The

aforesaid issue being covered by the decision rendered by this Court in the case of CIT VS M/S. KBD SUGARS & DISTILLERIES LTD., in ITA No.170/2014 dated 14.12.2021, the said substantial question of law is answered in favour of the assessee and against the revenue.

Resultantly, the appeal stands dismissed.

Sd/- JUDGE

THE PR.COMMISSIONER OF INCOME TAX, CIT(A) vs. M/S KBD SUGARS AND DISTILLERIES LTD