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

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ITA/552/2016HC KarnatakaKAHC01045095201614 December 2021Bench: S.SUJATHA,S VISHWAJITH SHETTY3 pages
AI SummaryDismissed

What did the High Court hold?

The High Court followed its earlier decision in a similar case and held that the Tribunal was justified in deleting the addition. The substantial question of law was answered in favour of the assessee.

What were the facts?

The revenue appealed against an ITAT order that deleted additions made under Section 14A read with Section 8D(2)(ii) and (iii). The ITAT held that there was no fresh investment and the assessing authority lacked satisfaction regarding expenditure in contravention of Section 14A.

What were the issues?

Whether the Tribunal was justified in deleting additions under Section 14A when the assessing authority lacked satisfaction regarding contravention of the provisions and relevant circulars.

Which sections of the Income-tax Act were involved?

Section 14A,Section 8D(2)(ii),Section 8D(2)(iii)

AI-generated summary — verify with the full judgment below

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.552/2016 BETWEEN: 1. The Pr. Commissioner of Income-Tax, CIT(A)

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

Bangalore-560095.

2.

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 praying to set aside the orders passed by the ITAT, Bangalore, in ITA No.933/Bang/2013 dated 05.02.2016 and

confirm the order of the Appellate Commissioner confirming 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

1.

This appeal is admitted to consider the following substantial question of law.

"Whether, on the facts and in the circumstances of the case, the Tribunal was justified in deleting the addition made under Section 14A r/w/s 8D(2)(ii) and (iii) holding that there was no fresh investment and the assessing authority has not expressed or recorded any satisfaction by identifying the expenditure which has been incurred in contravention to the provisions in Section 14A and also contrary to the Board's Circular No.14 of the 2001 and 5 of 2001?"

2.

The said substantial question of law having been considered and answered in favour of the assessee and against the revenue in the case of CIT VS M/S. QUEST GLOBAL ENGINEERING SERVICE PVT. LTD., in ITA No.133/2015 dated 15.02.2021, the said substantial

question of law is answered in favour of the assessee and against the revenue.

Resultantly, the appeal stands dismissed.

Sd/- JUDGE

Sd/- JUDGE

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