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

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.

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

"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?"

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

Resultantly, the appeal stands dismissed.

Sd/- JUDGE

Sd/- JUDGE