M/S MANGALORE ELECTRICITY SUPPLY COMPANY LTD vs. THE DEPUTY COMMISSIONER OF INCOME TAX

1 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 27TH DAY OF JANUARY 2021 PRESENT THE HON’BLE MR. JUSTICE ALOK ARADHE AND THE HON’BLE MR. JUSTICE NATARAJ RANGASWAMY I.T.A. NO.107 OF 2013 BETWEEN: M/S. MANGALORE ELECTRICITY SUPPLY COMPANY LTD., REP. BY ITS FINANCIAL ADVISER SRI. K. JAYARAM ALVA PARADIGM PLAZA A.B. SHETTY CIRCLE PANDESHWAR, MANGALORE. ... APPELLANT (BY SRI. A. SHANKAR, SR. COUNSEL FOR SRI. M. LAVA, ADV.,) AND: THE DEPUTY COMMISSIONER OF INCOME-TAX CIRCLE 2(1), II FLOOR CENTRAL REVENUE BUILDING ANNEXE ATTAVAR, MANGALORE. ... RESPONDENT (BY SRI. K.V. ARAVIND, ADV.) - - - THIS I.T.A. IS FILED UNDER SEC. 260-A OF INCOME TAX ACT 1961, ARISING OUT OF ORDER DATED 31.10.2012 PASSED IN ITA NO.1118/BANG/2009, FOR THE ASSESSMENT YEAR 2006- 07, PRAYING TO: (i) FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED THEREIN. (ii) ALLOW THE APPEAL AND SET ASIDE THE FINDINGS TO THE EXTENT AGAINST THE APPELLANT IN THE ORDER PASSED BY

2 THE TRIBUNAL IN ITA NO.1118/BANG/2009 DATED 31.10.2012, IN THE INTEREST OF JUSTICE AND EQUITY. THIS I.T.A. COMING ON FOR HEARING, THIS DAY, ALOK ARADHE J., DELIVERED THE FOLLOWING: JUDGMENT This appeal under Section 260A of the Income Tax Act, 1961 (hereinafter referred to as the Act for short) has been preferred by the assessee. The subject matter of the appeal pertains to the Assessment year 2006-07. The appeal was admitted by a bench of this Court vide order dated 16.07.2013 on the following substantial questions of law: (i) Whether the Tribunal was justified in law in confirming the disallowance of Rs.54,84,85,143/- being deduction claimed under section 80IA(4)(iv)(c) of the Act on the facts and circumstances of the case? (ii) Whether the Tribunal was justified in law in denying deduction under section 80IA(4)(iv)(b) of the Act on the facts and circumstances of the case? (iii) without prejudice, whether the

3 Tribunal was justified in law in denying the deduction claimed by the appellant under Section 80IA(4)(iv)(b) of the Act after holding that the appellant is entitled to claim deduction from 1.4.2005 on network of a new transmission or distribution line on the facts and circumstances of the case? (iv) Whether the Tribunal was justified in law in holding that the appellant is not entitled for depreciation on the consumer contribution and the said assets are used for the business and maintained by the assessee on the facts and circumstances of the case?" 2. Today, the appeal is admitted on the following additional substantial question of law: (v) 'Whether the provisions of Section 115JB of the Act is applicable to the appellant company for the impugned Assessment Year 2006-07 on the fact and circumstances of the case? 3. At the outset learned Senior counsel for the assessee submitted that the appellant does not press

4 substantial question of law No.4. Therefore, it is not necessary for us to deal with the same. 4. For the reasons assigned by us in the judgment passed today in I.T.A.No.204/2013, the substantial questions of law framed by a bench of this court are answered in favour of the assessee and against the revenue. In the result, the order passed by the tribunal dated 04.07.2012 insofar as it contains findings against the assessee is hereby quashed. In the result, the appeal is disposed of. Sd/- JUDGE Sd/- JUDGE ss