ASSISTANT COMMISSIONER OF INCOME TAX, BENGALURU vs. CMR JNANADHARA TRUST, BENGALURU

In the result, the appeal filed by the revenue is hereby dismissed

Bench: Shri George George K & Shri Waseem Ahmed

disallowance warranted. According to the AO, the profit margins of the company, whose gross receipts is predominantly from the related enterprises only, before payment of salaries to specified persons u's. 13(3) and after payment of the same are in the order of 1763% and 1257% respectively, and this as per AO is not at arm's length

M/S. ALLSTATE INDIA PRIVATE LIMITED ,BENGALURU vs. THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE - 1(1)(1), BENGALURU

In the result, the appeal of the assessee is allowed

Bench: Shri George George K. & Shri Laxmi Prasad Sahuassessment Year: 2018-19

disallowance of deduction under section 10AA of the Act for interest income earned by the Appellant. 4. That the learned CIT(A) has erred in the facts and circumstances of the case by - passing the impugned Order without following the judicial Precedence on this matter. 2. The brief facts of the case are that the assessee filed return of income

DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-3(1)(1), BENGALURU, BENGALURU vs. INFOSYS LIMITED, BENGALURU

In the result, appeal filed by the assessee is partly allowed and the appeal filed by the revenue is dismissed

Bench: Shri Waseem Ahmed & Shri Keshav Dubeyassessment Year: 2019-20

disallowed in the return of income under section 14A. The said expenditure was computed on the basis of 1%, 2%, 5%, and 10%, respectively of the salary cost of CFO & Deputy CFO, SVP-Global Head – Taxation and corporate accounting, Treasury Head and other employees. 16.2 In the assessment order, a sum of Rs. 19,09,13

INFOSYS LIMITED,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME-TAX, CIRCLE-3(1)(1), BANGALORE

In the result, appeal filed by the assessee is partly allowed and the\nappeal filed by the revenue is dismissed

Bench: Shri Waseem Ahmed\Nand\Nshri Keshav Dubey\N\N\Nita No. 881/Bang/2023\N Assessment Year: 2019-20\N\Ninfosys Limited\Nplot 44, Konappana Agrahara\Nhosur Road, Konappana\Nbangalore - 560100\Nkarnataka\N\Npan: Aaaci4798L\N\Nappellant\N\Nvs.\N\Ndy. Commissioner Of Income Tax\Ncircle - 3(1)(1)\Nbmtc Building, 80 Feet Road\Nkoramangala, Bangalore – 560095\Nkarnataka\N\Nrespondent\N\Nita No. 245/Bang/2024\N Assessment Year: 2019-20\N\Njt. Commissioner Of Income Tax (Osd)\Ncircle - 3(1)(1)\Nroom No. 241, 2Nd Floor\Nbmtc Building, 80 Feet Road\N6Th Block, Koramangala\Nbangalore - 560095\Nkarnataka\N\Nvs.\N\Ninfosys Limited\Nplot 44, Konappana Agrahara\Nhosur Road, Konappana\Nbangalore - 560100\Nkarnataka\N\Npan: Aaaci4798L\N\Nappellant\N\Nrespondent\N\Nassessee By\Ndepartment By\N\Nsri Padam Chand Khincha – Ca\Nsmt. Srinandini Das – Cit - Dr\N\Ndate Of Hearing\Ndate Of Pronouncement:\N\N09.05.2025\N06.08.2025\N\Norder\N\Nper Keshav Dubey:\N\Nthese Cross Appeals Are Filed Against The Order Of Ld. Commissioner Of\Nincome Tax (Appeals), National Faceless Appeal Centre, Delhi [In Short \"Ld.\Ncit(A)/Nfac] Vide Din & Order No. Itba/Nfac/S/250/2023-24/1056786183(1) Dated 05.10.2023 Passed U/S.250 Of The Income Tax\Nact, 1961 (In Short “The Act\") For The A.Y.2019-20.\N\Npage 2 Of 34\N\N2. The Assessee Has Raised The Following Grounds Of Appeal: - \N\N\"1.\N\Ngeneral Ground\N\N1.

section 14A. The said expenditure\nwas computed on the basis of 1%, 2%, 5%, and 10%, respectively of the\nsalary cost of CFO & Deputy CFO, SVP-Global Head - Taxation and\ncorporate accounting, Treasury Head and other employees.\n\n16.2 In the assessment order, a sum of Rs.19,09,13,241/- has been\ncomputed as the disallowance

DEPUTY COMMISSIONER OF INCOME TAX CIRCLE-3(1)(1), BANGALORE vs. M/S INFOSYS LIMITED , BANGALORE

In the result, the appeal filed by the assessee as well as by revenue are partly allowed for statistical purposes

Bench: Shri N.V. Vasudevan & Shri Chandra Poojariit(Tp)A No.735/Bang/2018 Assessment Year: 2013-14

10. confirming the action of the learned assessing officer in disallowing deduction claimed under section 80JJAA amounting to Rs. 445,35,11,127. On facts and circumstances of the case and law applicable, impugned disallowance should be deleted in entirety and deduction under section 80JJAA should be allowed as claimed in the return of income. Disallowance of payments made

M/S INFOSYS LTD ,BANGALOR E vs. THE ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE-3(1)(1), BANGALORE

In the result, the appeal filed by the assessee as well as by revenue are partly allowed for statistical purposes

Bench: Shri N.V. Vasudevan & Shri Chandra Poojariit(Tp)A No.735/Bang/2018 Assessment Year: 2013-14

10. confirming the action of the learned assessing officer in disallowing deduction claimed under section 80JJAA amounting to Rs. 445,35,11,127. On facts and circumstances of the case and law applicable, impugned disallowance should be deleted in entirety and deduction under section 80JJAA should be allowed as claimed in the return of income. Disallowance of payments made

KARNATAKA HOUSING BOARD,BANGALORE vs. DCIT, EXEMPTIONS, CIRCLE-1, , BANGALORE

Bench: Shri Laxmi Prasad Sahu\Nand\Nshri Keshav Dubey\N\Nita Nos.512 & 513/Bang/2025\N Assessment Year : 2021-22 & 2015-16\N\Nkarnataka Housing Board\N4Th Floor Cauvery Bhavan\Nk.G. Road\Nbangalore 560 009\Nvs.\Ndcit (Exemptions)\Ncircle-1\Nbangalore\N\Npan No:Aaajk0398K\N\Nappellant Respondent\N\Nappellant By : Sri Padamchand Khincha, A.R.\Nrespondent By : Sri K.M. Mahesh, D.R.\N\Ndate Of Hearing : 17.09.2025\Ndate Of Pronouncement : 15.12.2025\N\Norder\N\Nper Keshav Dubey:\N\Nthese Appeals At The Instance Of The Assessee Are Directed Against The Orders Of The 1D. Cit(A)/Nfac Dated 18.02.2025 Vide Din & Order No.Itba/Nfac/S/250/2024-25/1073418441(1) For The Assessment Year 2021-22 & Vide Order Dated 31.1.2025 With Din & Order No.Itba/Nfac/S/250/2024-25/1072790068(1) For The Assessment Year 2015-16 Passed U/S 250 Of The Income Tax Act, 1961 (In Short “The Act”). Since The Issues In Both The Appeals Are Similar, These Are Clubbed Together, Heard Together & Disposed Of By This Common Order For The Sake Of Convenience.\N\N2. First, We Take Up Assessee'S Appeal In Ita No.512/Bang/2025 For The Assessment Year 2021-22 For Adjudication. The Assessee Has Raised The Following Grounds Of Appeal:\N\N1. General Ground\N\N1.

13(8) are inapplicable and consequently exemption under section 11 is to be allowed as claimed by the appellant.\n\n3. Levy of interest under section 234A and 234B\n\n6.1 The learned CIT(A), NFAC erred in confirming the levy of interest under section 234A and 234B of the Act. On facts and circumstances of the case

KARNATAKA INDUSTRIAL AREAS DEVELOPMENT BOARD,BANGALORE vs. DEPUTY COMMISSIONER INCOME TAX, EXEMPTIONS, CIRCLE-1, , BANGALORE

In the result, the grounds raised by the assessee in both the appeals\nare allowed except the limitation ground

section 10 of the Act. The Ld.CIT(A)\nobserved that the amendments would take effect from 01/04/2024 and\ntherefore the same would be applicable from the A.Y. 2024-25. The\nLd.CIT(A), therefore confirmed the orders of the AO insofar as the\ndisallowance made u/s. 13(8) of the Act and treated the income under the\nhead “Profits and Gains

KARNATAKA INDUSTRIAL AREAS DEVELOPMENT BOARD,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME-TAX, EXEMPTIONS, CIRCLE-1, BANGALORE

In the result, the grounds raised by the assessee in both the appeals\nare allowed except the limitation ground

disallowances made by the AO were deleted, and the assessee's claim for exemption under Section 11 was upheld.", "result": "Allowed", "sections": [ "Section 11", "Section 13(8)", "Section 2(15)", "Section 43B", "Section 234A", "Section 234B", "Section 143(3)", "Section 153(1)", "Section 250", "Section 11(1)(b)", "Section 11(6)", "Section 10

M/S. BHARAT BEEDI WORKS PRIVATE LIMITED,MANGALURU vs. DEPUTY COMMISIONER OF INCOME TAX, CENTRAL CIRCLE - 2, MANGALURU

In the result, the appeals filed by the assessee for all the four A

Bench: SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER\nAND\nSHRI SOUNDARARAJAN K. (Judicial Member)

13. Without prejudice to the above, even if the\nimpugned disallowance was taken to be under Section\n40A(3), the same is unsustainable as such disallowance\ncan be made only in respect of clearly identified\ntransactions and not on the basis of surmise, conjuncture\nand ad hoc estimate, particularly when the tax auditors\nhave not pointed out any violation

M/S. BHARAT BEEDI WORKS PRIVATE LIMITED,MANGALURU vs. DEPUTY COMMISIONER OF INCOME TAX, CENTRAL CIRCLE - 2, MANGALURU

disallowance under Section 14A can be made\ntowards the interest expenditure where the Appellant's\ninterest-free funds exceed its interest-free investments.\nFor the above Grounds and for such other Grounds which\nmay be allowed by the Honourable Members to be urged\nat the time of hearing, it is prayed that the aforesaid\nappeal be allowed.”\n Assessment Year

ASSISTANT COMMISSIONER OF INCOME TAX, EXEMPTIONS, CIRCLE-1, BENGALURU vs. K J FOUNDATION, BENGALURU

In the result, the appeal filed by the Revenue is dismissed

Bench: Shri Waseem Ahmed & Shri Soundararajan K.Assistant Commissionerof K.J. Foundation Income Tax 58/1 Thubarahalli Room No. 606, 6Th Floor Behind Sriram, Samruthi Vs. Unity Bldg. Annex Apartments, Whitefield Road P. Kalinga Rao Road Karnataka 500067 Karnataka 560027 Pan – Aabtk1178N (Appellant) (Respondent) Assessee By: Shri Satish R. Mody, Advocate Revenue By: Shri Vilas V. Shinde, Cit-Dr Date Of Hearing: 28.05.2024 Date Of Pronouncement: 19.06.2024 O R D E R Per: Soundararajan K., J.M. This Is An Appeal Filed By The Revenue Against The Order Passed By The National Faceless Appeal Centre, Delhi (‘Cit(A)’) Under Section 250 Of The Income Tax Act, 1961 (The Act) In Respect Of The Assessment Year (Ay) 2017-18. 2. The Revenue Has Raised The Following Grounds Of Appeal: - “1 The Order Of Learned Cit(A) Is Opposed To Facts & Circumstances Of The Case 2 The Cit(A) Has Erred In Observing That During The F.Y 2016- 17, The Assessee Had Paid Lease Rent Of Rs.9,58,28,710/-Only To Eduspark International Pvt. Ltd. Which Was A Specified Person U/S.13(3) Of The Income Tax Act, 1961 & That Such Payment

disallowance of the claim of exemption under Section 11 of the Act is in order when the trust had complied with all the conditions prescribed under the statute. Before going into the issue, first we will take a look on the findings given by the CIT(A). The learned CIT(A) had given the following findings: - “5.1 In this case

KARNATAKA HOUSING BOARD,BANGALORE vs. DCIT, EXEMPTIONS, CIRCLE-1, BANGALORE

Bench: Shri Laxmi Prasad Sahu\Nand\Nshri Keshav Dubey\N\Nita Nos.512 & 513/Bang/2025\N Assessment Year : 2021-22 & 2015-16\N\Nkarnataka Housing Board\N4Th Floor Cauvery Bhavan\Nk.G. Road\Nbangalore 560 009\Nvs.\Ndcit (Exemptions)\Ncircle-1\Nbangalore\N\Npan No :Aaajk0398K\Nappellant\Nrespondent\N\Nappellant By\Nrespondent By\N: Sri Padamchand Khincha, A.R.\N: Sri K.M. Mahesh, D.R.\N\Ndate Of Hearing\N: 17.09.2025\Ndate Of Pronouncement\N: 15.12.2025\N\Norder\N\Nper Keshav Dubey:\N\Nthese Appeals At The Instance Of The Assessee Are Directed\Nagainst The Orders Of The 1D. Cit(A)/Nfac Dated 18.02.2025 Vide\Ndin & Order No.Itba/Nfac/S/250/2024-25/1073418441(1) For\Nthe Assessment Year 2021-22 & Vide Order Dated 31.1.2025 With\Ndin & Order No.Itba/Nfac/S/250/2024-25/1072790068(1) For\Nthe Assessment Year 2015-16 Passed U/S 250 Of The Income Tax\Nact, 1961 (In Short “The Act”). Since The Issues In Both The Appeals\Nare Similar, These Are Clubbed Together, Heard Together And\Ndisposed Of By This Common Order For The Sake Of Convenience.\N\N2. First, We Take Up Assessee'S Appeal In Ita No.512/Bang/2025\Nfor The Assessment Year 2021-22 For Adjudication. The Assessee\Nhas Raised The Following Grounds Of Appeal:\N\N1. General Ground\N1.

13(8) are inapplicable and consequently exemption under section 11 is to be\nallowed as claimed by the appellant.\n\n3. Levy of interest under section 234A and 234B\n6.1 The learned CIT(A), NFAC erred in confirming the levy of interest under section 234A and\n234B of the Act. On facts and circumstances of the case and law applicable

M/S. BHARAT BEEDI WORKS PRIVATE LIMITED ,MANGALURU vs. ASSISTANT COMMISIONER OF INCOME TAX, CIRCLE - 2(1) , MANGALURU

Bench: Shri Laxmi Prasad Sahu\Nand\Nshri Soundararajan K.\Nita Nos.642 To 645/Bang/2024\N Assessment Years : 2017-18 To\N2020-21\Nm/S. Bharat Beedi Works\Nprivate Limited,\Ngolden Jubilee Building,\Nbharath Bagh,\Nkadri Road,\Nmangaluru – 575 002.\Npan: Aaacb9001B\Nappellant\Nassessee By\Nrevenue By\N: Shri Chythanya .K, Sr.\Nadvocate\N: Shri E. Shridhar, Cit-Dr\Ndate Of Hearing\Ndate Of Pronouncement\Norder\Nper Bench\Nthese Are The Appeals Filed By The Assessee Challenging The Orders Of\Nthe Ld.Cit(A) -2, Panaji Dated 30/01/2024 In Respect Of The A.Ys.2017-18,\N2018-19, 2019-20 & 2020-21. The Grounds Raised By The Assessee For\Neach Of The Assessment Years Are Extracted Hereunder For The Sack Of\Nconvenience.\Npage 2 Of 74\Nita Nos.642 To 645/Bang/2024\N Assessment Year 2017-18:\N“1. The Impugned Orders Of The Lower Authorities Are Not\Njustified In Law & On The Facts & Circumstances Of The\Ncase.\N2. The Impugned Assessment Proceedings & The\Nimpugned Assessment Order Under Section 143(3) Dated\N29.11.2021 Are Bad & Non-Est Since The Notice Under\Nsection 143(2) Dated 13.08.2018 Was Issued Without\Naffixing Any Signature Either Manually Or Digitally.\N3. Without Prejudice To The Above, Impugned Assessment\Nproceedings & The Impugned Assessment Order Under\Nsection 143(3) Dated 29.11.2021 Are Bad & Non-Est\Nbeing Based On The Notice Under Section 143(2) Dated\N13.08.2018 Which Is Vague, Without Of Application Of Mind\Nand Contrary To Section 143(2) & Applicable Board\Ncirculars & Instructions.\N4. As Regards Disallowance Under Section 14A U/S Rule\N8D(2)(Ii):\N4.

13. Without prejudice to the above, even if the\nimpugned disallowance was taken to be under Section\n40A(3), the same is unsustainable as such disallowance\ncan be made only in respect of clearly identified\ntransactions and not on the basis of surmise, conjuncture\nand ad hoc estimate, particularly when the tax auditors\nhave not pointed out any violation

JCIT, BANGALORE vs. M/S HEWLETT PACKARD INDIA SALES P. LTD.,, BANGALORE

In the result appeal of the ld AO is dismissed and Assessee is partly allowed

Bench: Shri Prashant Maharishi & Shri Keshav Dubeyassessment Year : 2010-11

10 Disallowance of defective spare inventory 5,47,92,966 11 Disallowance of miscellaneous expenditure 2,25,13,253 12 Disallowance of other provisions 3,99,95,033 13 Expenditure debited under the head cost of 84,98,42,348 goods sold 14 Outside contract service 36,14,59,731 15 Date of approval and disallowed under

HEWLETT PAKCARD INDIA SALES PRIVATE LIMITED,BANGALORE vs. JCIT, BANGALORE

In the result appeal of the ld AO is dismissed and Assessee is partly allowed

Bench: Shri Prashant Maharishi & Shri Keshav Dubeyassessment Year : 2010-11

10 Disallowance of defective spare inventory 5,47,92,966 11 Disallowance of miscellaneous expenditure 2,25,13,253 12 Disallowance of other provisions 3,99,95,033 13 Expenditure debited under the head cost of 84,98,42,348 goods sold 14 Outside contract service 36,14,59,731 15 Date of approval and disallowed under

M/S. SILICON ESTATES,BENGALURU vs. THE DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-1(4), BANGALORE

In the result, the appeal fails and is hereby dismissed

Bench: Shri Chandra Poojari & Ms. Madhumita Royassessment Year : 2013-14 M/S. Silicon Estates, The Deputy # 14, 6Th Floor, Commissioner Of Geneva House, Income Tax, Cunningham Road, Central Circle Bengaluru – 560 001. 1(4), Vs. Pan: Abefs6150N Bengaluru. Appellant Respondent Assessee By : Shri Tata Krishna, Advocate Revenue By : Shri D.K. Mishra, Cit Dr Date Of Hearing : 11-09-2023 Date Of Pronouncement : 04-12-2023 Order Per Madhumita Roythe Instant Appeal Filed By The Assessee Is Directed Against The Order Dated 24.11.2020 Passed By The Ld.Cit(A)-11, Bangalore Arising Out Of The Order Dated 30.12.2015 Passed By The Ld.Dcit, Central Circle – 1(4), Bangalore U/S. 143(3) Of The Income Tax Act, 1961 (Hereinafter Referred To As “The Act”) For A.Y. 2013-14 Whereby & Whereunder The Rejection Of The Claim U/S. 80Ib(10) Of Rs.4,03,40,492/- For A.Y. 2013-14 Has Been Confirmed.

Section 80I8(10) of the Act. In view of preceding analysis, the substantial questions of law framed by this court are answered against the revenue and in favour of the assessee. In the result, the appeal fails and is hereby dismissed.” 13. We find substance in the case made out of the assessee against the disallowance

INFOSYS LIMITED,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-3(1)(1), BANGALORE

Accordingly, the appeal filed by the assessee is also allowed for statistical purposes

Bench: Shri Waseem Ahmed & Shri Keshav Dubey

13 of 16 7.2 The additional ground on allowability of deduction under section 37(1) of the Act in respect of foreign taxes paid which is not eligible for relief under section 90 or 91 of the Act is a pure legal ground. The quantum of taxes paid overseas is available on record. Relief under section 90 has been claimed

INFOSYS LIMITED,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-3(1)(1), BANGALORE

Accordingly, the appeal filed by the assessee is also allowed for statistical purposes

Bench: Shri Waseem Ahmed & Shri Keshav Dubey

13 of 16 7.2 The additional ground on allowability of deduction under section 37(1) of the Act in respect of foreign taxes paid which is not eligible for relief under section 90 or 91 of the Act is a pure legal ground. The quantum of taxes paid overseas is available on record. Relief under section 90 has been claimed