DUSTERS TOTAL SOLUTIONS SERVICES PRIVATE LIMITED ,BANGALORE vs. DCIT, CIRCLE-2(1)(2), BANGALORE

In the result appeal of the assessee is hereby allowed

Bench: Shri Waseem Ahmed & Shri Keshav Dubey

disallowance by holding that the provisions represented unascertained liabilities and therefore, the same were not allowable under section 37(1) of the Act. 37.2 At the outset, we note that the assessee is following the mercantile system of accounting. Under this system, income and expenditure are recognised on accrual basis and not on payment basis. This position is well recognised

DUSTERS TOTAL SOLUTIONS SERVICES PRIVATE LIMITED,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME TAX , CIRCLE-2(1)(1), BANGALORE

In the result appeal of the assessee is hereby allowed

Bench: Shri Waseem Ahmed & Shri Keshav Dubey

disallowance by holding that the provisions represented unascertained liabilities and therefore, the same were not allowable under section 37(1) of the Act. 37.2 At the outset, we note that the assessee is following the mercantile system of accounting. Under this system, income and expenditure are recognised on accrual basis and not on payment basis. This position is well recognised

TOTAL ENVIRONMENT BUILDING SYSTEMS PRIVATE LIMITED ,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME TAX CIRCLE-7(1)(1), BANGALORE

In the result, revenue’s appeal stands dismissed and the assessee’s appeals for A

Bench: Shri. Chandra Poojari & Smt. Beena Pillai

disallowed under section 43B. 6.5 On the contrary the Ld.DR relied on the decision of Hon’ble Supreme Court in case of Chowranghee sales Buro vs. CIT, reported in (1973) 87 ITR 542 6.6 We have perused submissions advanced for both sides in light of records placed before us. 6.7 Section 43B does not contemplate liability to pay the service

M/S TOTAL ENVIRONMENT BUILDING SYSTEMS PRIVATE LIMITED ,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME TAX CIRCLE-7(1)(1), BANGALORE

In the result, revenue’s appeal stands dismissed and the assessee’s appeals for A

Bench: Shri. Chandra Poojari & Smt. Beena Pillai

disallowed under section 43B. 6.5 On the contrary the Ld.DR relied on the decision of Hon’ble Supreme Court in case of Chowranghee sales Buro vs. CIT, reported in (1973) 87 ITR 542 6.6 We have perused submissions advanced for both sides in light of records placed before us. 6.7 Section 43B does not contemplate liability to pay the service

DEPUTY COMMISSIONER OF INCOME TAX CIRCLE-7(1)(1), BANGALORE vs. M/S TOTAL ENVIRONMENT BUILDING SYSTEMS PVT LTD , BANGALORE

In the result, revenue’s appeal stands dismissed and the assessee’s appeals for A

Bench: Shri. Chandra Poojari & Smt. Beena Pillai

disallowed under section 43B. 6.5 On the contrary the Ld.DR relied on the decision of Hon’ble Supreme Court in case of Chowranghee sales Buro vs. CIT, reported in (1973) 87 ITR 542 6.6 We have perused submissions advanced for both sides in light of records placed before us. 6.7 Section 43B does not contemplate liability to pay the service

ASHRAF NAFISA ALTHAF,MOODUBIDRI MANGALORE vs. INCOME TAX OFFICER, WARD-1 & TPS, UDUPI

In the result, the appeal of the assessee is dismissed

Bench: Shri Chandra Poojari & Smt. Beena Pillaiassessment Year: 2013-14

disallowed under section 43B since it was not payable as on March 31, 2007. It was found that the amount on which service tax was payable had not been received from the parties to whom services were rendered. Mr. Asraf Nafisa Althaf, Mangalore Page 12 of 21 Hence, the provisions of section 43B were not attracted. This was confirmed

JCIT, BANGALORE vs. M/S BIOCON LTD.,, BANGALORE

In the result, Revenue’s appeal for Assessment Year 2008-09 is dismissed

Bench: Shri Sunil Kumar Yadav & Shri Jason P Boaz

245 (Mum – Tribunal); and (ii) Pizza Hut International LLC V Dy. DIT (IT) (2012) taxmann.com 111 (Del) 6.2.3 The learned Authorised Representative further submitted that even if royalty is to be disallowed, corresponding deduction under Section

M/S. ACE DEVELOPERS,MANGALURU vs. THE DEPUTY COMMISSIONER OF INCOME-TAX, CENTRAL CIRCLE-1, MANGALURU

In the result, the all the appeals of the assessee are partly allowed

Bench: Shri Chandra Poojari & Smt. Beena Pillai

disallowance under section 40A(3) shall not be made and no payment shall be deemed to be the profits and gains of business or profession. The learned CIT(A)-2, Panaji has grossly overlooked the following 5. decisions, which are squarely applicable to appellant's case. 1. M.K. Agrotech Private Limited Vs. ACIT (109 Taxmann.com

M/S. ACE DEVELOPERS,MANGALURU vs. THE DEPUTY COMMISSIONER OF INCOME-TAX, CENTRAL CIRCLE-1, MANGALURU

In the result, the all the appeals of the assessee are partly allowed

Bench: Shri Chandra Poojari & Smt. Beena Pillai

disallowance under section 40A(3) shall not be made and no payment shall be deemed to be the profits and gains of business or profession. The learned CIT(A)-2, Panaji has grossly overlooked the following 5. decisions, which are squarely applicable to appellant's case. 1. M.K. Agrotech Private Limited Vs. ACIT (109 Taxmann.com

M/S. ACE DEVELOPERS,MANGALURU vs. THE DEPUTY COMMISSIONER OF INCOME-TAX, CENTRAL CIRCLE-1, MANGALURU

In the result, the all the appeals of the assessee are partly allowed

Bench: Shri Chandra Poojari & Smt. Beena Pillai

disallowance under section 40A(3) shall not be made and no payment shall be deemed to be the profits and gains of business or profession. The learned CIT(A)-2, Panaji has grossly overlooked the following 5. decisions, which are squarely applicable to appellant's case. 1. M.K. Agrotech Private Limited Vs. ACIT (109 Taxmann.com

M/S VMWARE SOFTWARE INDIA PRIVATE LIMITED ,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME TAX CIRCLE-7(1)(2), BANGALORE

In the result, appeals of the Revenue are dismissed while the appeals of the assessee are partly allowed

Bench: Shri N. V. Vasudevan & Shri Chandra Poojari

section 40a(ia) of the Act. The issue is identical to the issue raised by the assessee in Assessment Year 2010-11. The payment to the non- resident in this Assessment Year is also prior to the decision of Hon’ble Karnataka IT(TP)A Nos.322, 323, 417 and 418/Bang/2018 Page 36 of 38 High Court in the case

DEPUTY COMMISSIONER OF INCOME TAX CIRCLE-7(1)(2), , BANGALORE vs. M/S VMWARE SOFTWARE INDIA PRIVATE LIMITED , BANGALORE

In the result, appeals of the Revenue are dismissed while the appeals of the assessee are partly allowed

Bench: Shri N. V. Vasudevan & Shri Chandra Poojari

section 40a(ia) of the Act. The issue is identical to the issue raised by the assessee in Assessment Year 2010-11. The payment to the non- resident in this Assessment Year is also prior to the decision of Hon’ble Karnataka IT(TP)A Nos.322, 323, 417 and 418/Bang/2018 Page 36 of 38 High Court in the case

VMWARE SOFTWARE INDIA PVT LTD,BENGALURU vs. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-7(1)(2), BENGALURU

In the result, appeals of the Revenue are dismissed while the appeals of the assessee are partly allowed

Bench: Shri N. V. Vasudevan & Shri Chandra Poojari

section 40a(ia) of the Act. The issue is identical to the issue raised by the assessee in Assessment Year 2010-11. The payment to the non- resident in this Assessment Year is also prior to the decision of Hon’ble Karnataka IT(TP)A Nos.322, 323, 417 and 418/Bang/2018 Page 36 of 38 High Court in the case

M/S PRAXAIR INDIA PVT LTD ,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME TAX LTPU CIRCLE-1 , BANGALORE

In the result, the appeal filed by the assessee is partly allowed

245) was treated as TP adjustment. The view taken by the TPO was affirmed by the DRP. 14 IT(TP)A No.2839/Bang/2017. M/s.Praxair India Private Limited. 17.2 The undisputed facts on record are that the global supply systems (GSS) team of the assessee company performs design and engineering function with respect to construction of manufacturing facility to supply industrial gases

M/S. KARNATAKA STATE BEVEREGES CORPORATION LTD,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-4(1)(1), BANGALORE

In the result, appeal by the assessee is treated as partly allowed for statistical purposes

Bench: Shri N. V. Vasudevan & Shri Chandra Poojari

disallowance of provision for ex-gratia payment was made by the AO in the Order ITA Nos.971, 972/Bang/2018 and 1925/Bang/2017 Page 3 of 14 of Assessment. However, in the order dated 19.03.2015 passed under section 143(3) r.w.s. 254 of the Act, after remand by the Tribunal, this issue was considered by the AO. The assessee had included

M/S KARNATAKA STATE BEVERAGES CORPORATION LIMITED ,BANGALORE vs. ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE-4(1)(1), BANGALORE

In the result, appeal by the assessee is treated as partly allowed for statistical purposes

Bench: Shri N. V. Vasudevan & Shri Chandra Poojari

disallowance of provision for ex-gratia payment was made by the AO in the Order ITA Nos.971, 972/Bang/2018 and 1925/Bang/2017 Page 3 of 14 of Assessment. However, in the order dated 19.03.2015 passed under section 143(3) r.w.s. 254 of the Act, after remand by the Tribunal, this issue was considered by the AO. The assessee had included

M/S KARNATAKA STATE BEVERAGES CORPORATION LIMITED ,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME TAX CIRCLE-4(1)(1), BANGALORE

In the result, appeal by the assessee is treated as partly allowed for statistical purposes

Bench: Shri N. V. Vasudevan & Shri Chandra Poojari

disallowance of provision for ex-gratia payment was made by the AO in the Order ITA Nos.971, 972/Bang/2018 and 1925/Bang/2017 Page 3 of 14 of Assessment. However, in the order dated 19.03.2015 passed under section 143(3) r.w.s. 254 of the Act, after remand by the Tribunal, this issue was considered by the AO. The assessee had included

VIJAYA BANK ,BANGALORE vs. JOINT COMMISSIONER OF INCOME TAX LARGE TAX PAYER UNIT , BANGALORE

In the result, Revenue’s appeal for Assessment Year 2012-13 is dismissed

Bench: Shri Sunil Kumar Yadav & Shri Jason P Boaz

Section 14A r.w. Rule 8D. On a perusal of the record before us, we find that the facts and circumstances on this issue / ground are similar to those in Ground Nos.3 & 4 raised by Revenue in its appeal in ITA No.1252/Bang/2016 for A.Y. 2010-11. In that appeal (supra), we have decided this issue in favour of the assessee