THE COMMISSIONER OF INCOME TAX vs. M/S GE MEDICAL SYSTEMS (I) (P) LTD

1 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 18TH DAY OF NOVEMBER 2020 PRESENT THE HON’BLE MR. JUSTICE ALOK ARADHE AND THE HON’BLE MR. JUSTICE H.T.NARENDRA PRASAD I.T.A. NO.409 OF 2012 BETWEEN: 1. THE COMMISSIONER OF INCOME-TAX

C.R. BUILDING, QUEENS ROAD

BANGALORE. 2. THE DEPUTY COMMISSIONER OF INCOME-TAX

CIRCLE-1(1), PUNE. 3. THE DY. COMMISSIONER OF INCOME-TAX

CIRCLE-11(3), BANGALORE. ... APPELLANTS (BY SRI. K.V. ARAVIND, ADV.,) AND: M/S. GE MEDICAL SYSTEMS (I) (P) LTD., NO.122, (PART-1), EPIP WHITE FIELD ROAD, BANGALORE-560066. ... RESPONDENT (BY SRI. PERCY PARDIWALA, SR. COUNSEL FOR SRI. PAI DHUNGAL ANKUR, ADV.) - - - THIS ITA IS FILED UNDER SECTION 260-A OF I.T. ACT, 1961 ARISING OUT OF ORDER DATED 13.07.2012 PASSED IN ITA NO.770/BANG/2010 FOR THE ASSESSMENT YEAR 2002-03, PRAYING TO:

2 (I) FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED THEREIN. (II) ALLOW THE APPEAL AND SET ASIDE THE ORDERS PASSED BY THE ITAT, BANGALORE INITA NO.770/BANG/2010 DATED 13-07-2012 CONFIRMING THE ORDER OF THE APPELLATE COMMISSIONER AND CONFIRM THE ORDER PASSED BY THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-1(1), PUNE, IN THE INTEREST OF JUSTICE AND EQUITY. THIS ITA 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 revenue. The subject matter of the appeal pertains to the Assessment year 2002-03. The appeal was admitted by a bench of this Court vide order dated 21.02.2013 on the following substantial questions of law: (i) Whether the Appellate Authorities were correct in holding that the assessee is entitled to claim deduction in respect of expenditure incurred toward payment of voluntary retirement compensation of the employees taken over from M/s. Elpro International when the same was not incurred

3 solely and exclusively for the purpose of business. (ii) Whether Appellate Authorities were correct in failing to take into consideration that the business of M/s. Elpro International continue and taking over of the employees eligible for voluntary retirement was a device to avoid tax and recorded a perverse finding. 2. For the reasons assigned by us in the judgment passed today in I.T.A.No.410/2012 the substantial questions of law framed by a bench of this court are answered against the revenue and in favour of the assessee. In the result, we do not find any merit in this appeal, the same fails and is hereby dismissed. Sd/- JUDGE Sd/- JUDGE ss