What did the High Court hold?

The High Court directed the petitioner to file an application before the Assessing Authority to postpone the assessment. The Assessing Authority was to consider this application and pass orders, while the ITAT was to conclude its hearing and pass orders on the pending appeals.

The petitioner sought to direct the Assessing Authority not to pass assessment orders for AY 2007-08 and 2008-09 until the disposal of their appeal before the ITAT. The appeal concerned whether privilege fee is a deductible expense.

What were the issues?

The core issue was whether the assessment orders should be postponed pending the ITAT's decision on the deductibility of privilege fees.

Karnataka State Bevereges… vs CIT | Karnataka High Court 2013

Heard together (2 matters)

W.P.7955/13

W.P.7956/13

Read from the judgment's own cause title. This page is filed under one of them.

W.P.7955/13 A/W W.P.7956/13

1 IN THE HIGH COURT OF KARNATAKA, BANGALORE

DATED THIS THE 6th DAY OF MARCH, 2013

BEFORE

THE HON'BLE MR.JUSTICE RAM MOHAN REDDY

WRIT PETITION NO. 7955 OF 2013 (T-IT) A/W WRIT PETITION NO. 7956 OF 2013 (T-IT)

BETWEEN:

KARNATAKA STATE BEVEREGES CORPORATION LTD REP BY ITS EXECUTIVE DIRECTOR(FINANCE) SRI SRIKANTH B V AGED ABOUT 57 YEARS NO.78, SEETHALAKSHMI TOWERS MISSION ROAD BANGALORE-560027.

... PETITIONER COMMON

(By Sri: M LAVA, S.ANNAMALAI, AND A SHANKAR, ADVOCATES )

AND

THE COMMISSIONER OF INCOME TAX BANGALORE-1 C R BUILDING, QUEENS ROAD BANGALORE-560001

THE DEPUTY COMMISSIONER OF INCOME TAX CIRCLE-11(5) R P BAHVAN, OPP RESERVE BANK OF INDIA NRUPATHUNGA ROAD BANGALORE-560001 ... RESPONDENTS COMMON

W.P.7955/13 A/W W.P.7956/13

2 (By Sri.: M THIRUMALESH, ADV. )

THESE WRIT PETITIONS ARE FILED UNDER ARTICLE 226 OF CONSTITUTION OF INDIA PRAYING TO DIRECT THE RESPONDENT NO.2 NOT TO PASS THE ASSESSMENT ORDER FOR THE ASSESSMENT YEAR 2008-09 AND 2007-08 RESPECTIVELY TILL DISPOSAL OF THE APPEAL BY THE TRIBUNAL.

THESE WRIT PETITIONS COMING ON FOR PRL.HEARING IN ‘B’ GROUP THIS DAY, THE COURT MADE THE FOLLOWING:

ORDER

Since common questions of fact and that of law arise for decision making, hence with the consent of the learned counsel for the parties, petitions are clubbed together, finally heard and are disposed of by this order.

Even according to the learned counsel for the parties if the petitioner prefers an application to postpone the conclusion of the assessment for the assessment years 2007-08 and 2008-09, the Assessing Authority would consider the same and pass orders in accordance with law, regard being had to the fact that, the question as to whether privilege fee is a deduction or not under the Income-tax Act is subject matter of

W.P.7955/13 A/W W.P.7956/13

3 decision making in an appeal preferred by the petitioner pending before the Income-tax Appellate Tribunal, fixing the date of hearing as 13.3.2013.

Reserving liberty to the petitioner to file an application before the Assessing Authority as noticed supra, by 8/3/2013 and to appear before the Assessing Authority on 11.3.2013 and the Assessing Authority to pass orders on 13.3.2013, these petitions are accordingly disposed of. The Income-tax Appellate Tribunal to conclude the hearing of the two appeals on 13.3.2013 and proceed to pass orders on 18.3.2013.

Sd/- JUDGE

KARNATAKA STATE BEVEREGES CORPORATION LTD vs. THE COMMISSIONER OF INCOME TAX

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