PR. COMMISSIONER OF INCOME TAX-7 vs. M/S WIPRO GE HEALTHCARE LTD

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ITA/125/2018HC KarnatakaKAHC01054851201805 February 2021Bench: SATISH CHANDRA SHARMA,V SRISHANANDA4 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that the Tribunal was justified in setting aside the reallocation of expenses. The court followed a previous judgment in an identical case involving the same assessee for a different assessment year.

What were the facts?

The Revenue appealed against an ITAT order concerning the assessment year 2007-08. The core issue was the justification of the Tribunal setting aside the reallocation of expenses made by the assessing authority for EHTP units.

What were the issues?

Whether the Tribunal was justified in setting aside the reallocation of expenses by the assessing authority for EHTP units, considering the assessee's allocation for a Section 10A claim.

Which sections of the Income-tax Act were involved?

Section 260-A

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KARNATAKA AT BENGALURU

DATED THIS THE 5TH DAY OF FEBRUARY, 2021

PRESENT

THE HON’BLE MR. JUSTICE SATISH CHANDRA SHARMA

AND

THE HON’BLE MR. JUSTICE V. SRISHANANDA

I.T.A. NO.125/2018 BETWEEN:

1.

PR. COMMISSIONER OF

INCOME TAX-7

BMTC COMPLEX, KORMANGALA

BANGALORE.

2.

DY. COMMISSIONER OF INCOME TAX,

CIRCLE-12(5),

BANGALORE.

.... APPELLANTS (BY SRI SANMATHI.E.I, ADVOCATE)

AND:

M/S.WIPRO GE HEALTHCARE LTD. PLOT NO.4, KADUGODI INDL. AREA SADARMANGALA BANGALORE - 560 067 PAN : AAACW1685J

... RESPONDENT (BY SRI K.R.PRADEEP, ADVOCATE) - - -

THIS I.T.A. IS FILED UNDER SEC. 260-A OF INCOME TAX ACT 1961, ARISING OUT OF ORDER DATED :18.08.2017 PASSED IN IT(TP)A.NO.1392/BANG/2013, FOR THE ASSESSMENT YEAR:2007-2008, PRAYINJG TO (1) DECIDE

THE FOREGOING QUESTION OF LAW AND/OR SUCH OTHER QUESTIONS OF LAW AS MAY BE FORMULATED BY THE HON'BLE COURT AS DEEMED FIT AND SET ASIDE THE APPELLATE ORDER DATED 18.08.2017 PASED BY THE INCOME TAX APPELLATE TRIBUNAL, 'B' BENCH, BANGALORE, AS SOUGHT FOR, IN THE RESPONDENT-ASSESSEE'S CASE, IN APPEAL PROCEEDINGS IN IT(TP) A NO.1392/BANG/2013, FOR ASSESSMENT YEAR:2007-2008 & GRANT SUCH OTHER RELIEF AS DEEMED FIT.

THIS I.T.A. COMING ON FOR HEARING, THIS DAY, V. SRISHANANDA. J., DELIVERED THE FOLLOWING:

JUDGMENT

This appeal under Section 260A of the Income Tax Act, 1961 [hereinafter referred to as 'Act' for short] preferred by the revenue. The subject matter of the appeal pertains to the assessment year 2007-08. The appeal was admitted by a bench of this court vide order dated 25.02.2019 with the following substantial question of law:

"Whether on the facts and circumstances of the case, the Tribunal was justified in setting- aside the reallocation of expenses made by the assessing authority attributable to EHTP-I and EHTP-II units as against the claim of the assessee which was on the basis of the materials available on record which proved that assessee

made allocation to make 10A claim to a larger extent?"

2.

At the time of hearing, the learned counsel appearing for the assessee has relied on the judgment delivered by the co-ordinate bench of this court in ITA No.435/2011, where the subject matter of the appeal was of the year 2006-07, wherein an identical substantial question of law in respect of the very same assessee was held against the revenue and in favour of the assessee and therefore, in terms of the order passed in the said appeal, this appeal can be disposed of as the present appeal is between the same parties but for the assessment year 2007-08.

3.

The learned counsel for the revenue did not dispute the order passed by the co-ordinate bench of this Court passed in ITA No.435/2011 decided on 12th June, 2020.

4.

We have given our anxious consideration to the facts involved in the present case and the order passed by the co-ordinate bench of this court in ITA No.435/2011 decided on 12th June, 2020. Since the issue involved in the present appeal is in respect of the year 2007-08, the

judgment delivered in ITA No.435/2011 is applicable as mutatis mutandis for this appeal also.

5.

In view of the aforesaid submission and for the reasons assigned in the order passed by the co-ordinate bench of this Court in ITA No.435/2011 decided on 12.06.2020, the substantial question of law framed in this appeal is answered against the revenue and in favour of the assessee. Hence, the following order is passed:

Accordingly, the appeal sans merit and is hereby dismissed.

Sd/-

JUDGE

Sd/- JUDGE

PL*

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