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

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

Bench: Shri Chandra Poojaria & Smt. Beena Pillaiassessment Appeal No. Appellant Respondent Year M/S. Infosys Ltd., The Assistant Electronic City, Commissioner It(Tp)A No. Hosur Road, Of Income Tax, 2012-13 718/Bang/2017 Bangalore – 560 Circle – 100. 3(1)(1), Pan: Bangalore. Aaaci4798L : Shri Padamchand Khincha, Assessee By Ca : Shri K.V. Arvind & Shri Dilip, Revenue By Standing Counsels For Dept. Date Of Hearing : 15-09-2022 Date Of Pronouncement : 28-11-2022 Order Per Beena Pillaipresent Appeal Arises Out Of Final Assessment Order Dated 28/02/2017 Passed By The Ld.Acit, Circle – 3(1)(1), Bangalore For A.Y. 2012-13 On Following Grounds Of Appeal: General & Legal Grounds 1. The Order Passed By The Learned Assessing Officer & The Directions Of Hon’Ble Drp To The Extent Prejudicial To The Appellant Is Bad In Law & Liable To Be Quashed. Grounds On Denial Of Deduction Claimed Under Section 10Aa In Respect Of 4 Sez Units Viz., Chennai – Unit 1, Chandigarh, Mangalore - Unit 1 & Pune Unit 1 2. The Learned Assessing Officer Has Erred In Denying Deduction Claimed Under Section 10Aa In The Return Of Income Totally Amounting To Rs. 2227,82,65,630 In Respect

disallowance is upheld under section 40(a)(i), then the sum of Rs. 262,02,26,125 has to be allowed as deduction for the AY 2014-15 as the TDS has been paid during the previous year 2013-14 Allowability of deduction u/s 35(2AB) Wipro Ltd v CIT 382 ITR 179 (Karnataka

M/S UNITED BREWERIES LTD ,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME TAX CIRCLE-7(1)(1), BANGALORE

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

Bench: Shri George George K, Jm & Ms.Padmavathy S, Am

3,85,15,497/- for sponsoring cricketing events held during 2008 to ICC. The said amount was proposed to be disallowed by the AO in the Draft Assessment Order, for the following reasons: - (i) Similar expense has been disallowed in the earlier years as part of the Transfer Pricing Adjustment on account of AMP expenses. (ii) Assessee has been bearing

UNITED BREWERIES LIMITED,BANGALORE vs. JOINT COMMISSIONER OF INCOME TAX, SPECIAL RANGE- 7, BANGALORE

In the result, the appeals of the assessee are partly allowed for statistical purposes

Bench: Shri Chandra Poojari & Smt. Beena Pillai

disallowed the sales promotion and advertisement expenses totally amounting to Rs. 44,33,55,403 [36,91,12,995 + 7,42,42,408] for the reason that these expenses are brand promotion expenditures of USL logo, it promotes the brand the assessee, gives enduring benefit and hence capital in nature. The DRP confirmed the action of the AO. 12.6.1 Similar

M/S. UNITED BREWERIES LIMITED,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 7(1)(1), BANGALORE

In the result, the appeals of the assessee are partly allowed for statistical purposes

Bench: Shri Chandra Poojari & Smt. Beena Pillai

disallowed the sales promotion and advertisement expenses totally amounting to Rs. 44,33,55,403 [36,91,12,995 + 7,42,42,408] for the reason that these expenses are brand promotion expenditures of USL logo, it promotes the brand the assessee, gives enduring benefit and hence capital in nature. The DRP confirmed the action of the AO. 12.6.1 Similar

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

Bench: Shri Laxmi Prasad Sahu & Shri Soundararajan K.

3. The impugned searches conducted in the Appellant's premises on 26.02.2020, 22.05.2020 and 02.06.2020 on the basis of a single authorization of Page 5 of 74 ITA Nos. 642 to 645/Bang/2024 PDIT(Inv), Bangalore dated 20.02.2020 are bad and illegal thus rendering the impugned assessment null and void. 4. The impugned order under Section 153A dated

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

Bench: Shri Laxmi Prasad Sahu & Shri Soundararajan K.

3. The impugned searches conducted in the Appellant's premises on 26.02.2020, 22.05.2020 and 02.06.2020 on the basis of a single authorization of Page 5 of 74 ITA Nos.642 to 645/Bang/2024 PDIT(Inv), Bangalore dated 20.02.2020 are bad and illegal thus rendering the impugned assessment null and void. 4. The impugned order under Section 153A dated

M/S. UNITED SPIRITS LIMITED,BENGALURU vs. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-7(1)(1), BENGALURU

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

Bench: Shri George George K, Jm & Ms.Padmavathy S, Am It(Tp)A No.2701/Bang/2017 : Asst.Year 2013-2014 M/S.United Spirits Limited The Deputy Commissioner Of Ub Towers, Income-Tax, Circle 7(1)(1) V. No.24 Vittal Mallya Road Bangalore. Bangalore – 560 001. Pan : Aaccm8043J. (Appellant) (Respondent) Appellant By : Sri.Percy Pardiwala, Senior Advocate Respondent By : Sri.Pradeep Kumar, Cit-Dr Date Of Pronouncement : 05.04.2022 Date Of Hearing : 24.03.2022 O R D E R Per George George K, Jm : This Appeal At The Instance Of The Assessee Is Directed Against Final Assessment Order Dated 12.10.2017 Passed U/S 143(3) R.W.S. 144C(13) Of The I.T.Act. The Relevant Assessment Year Is 2013-2014. 2. The Brief Facts Of The Case Are As Follows: The Assessee Is A Company Engaged In The Manufacture & Sale Of Alcoholic Beverage. The Assessee Filed Its Return Of Income For The Assessment Year 2013-2014 On 28.11.2013 Which Was Selected For Scrutiny Assessment. During The Course Of Assessment, The Assessee’S Case Was Also Referred To The Transfer Pricing Officer (Tpo). The Tpo Vide Order Dated 26.10.2016, Recommended Transfer Pricing Adjustments. The A.O., Thereafter, Passed A Draft Assessment Order Dated 30.12.2016. 2 It(Tp)A No.2701/Bang/2017 M/S.United Spirits Limited.

3,85,15,497/- for sponsoring cricketing events held during 2008 to ICC. The said amount was proposed to be disallowed by the AO in the Draft Assessment Order, for the following reasons: - (i) Similar expense has been disallowed in the earlier years as part of the Transfer Pricing Adjustment on account of AMP expenses. (ii) Assessee has been bearing

M/S. SYNGENE INTERNATIONAL LIMITED,BANGALORE vs. JOINT COMMISSIONER OF INCOME TAX, SPECIAL RANGE- 6, BANGALORE

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

Bench: Shri Chandra Poojari & Shri George George K.Assessment Year: 2010-11

disallowed. Contentions before the ITAT: 3.6 There is no splitting up or reconstruction of business. The following factual aspects demonstrate the independence of SEZ Unit S11: 3.7 Physical location: The EOU unit 1 was situated at 20th KM, Hosur Road whereas the SEZ unit — S 11 is situated at Biocon SEZ, Bommasandra - Jigani Link Road, Bangalore. These two units

M/S. UNITED BREWERIES LIMITED,BANGALORE vs. JOINT COMMISSIONER OF INCOME TAX, SPECIAL RANGE-7, BANGALORE

In the result, the assessee’s appeal is partly allowed for statistical purposes

Bench: Shri Chandra Poojari & Smt. Beena Pillai

3,85,15,497/- for sponsoring cricketing events held during 2008 to ICC. The said amount was proposed to be disallowed by the AO in the Draft Assessment Order, for the following reasons: - (i) Similar expense has been disallowed in the earlier years as part of the Transfer Pricing Adjustment on account of AMP expenses. (ii) Assessee has been bearing

M/S. RAKSHA REALTORS PRIVATE LIMITED,BANGALORE vs. DCIT, CENTRAL CIRCLE-2(3), BANGALORE

In the result, the appeal of the assessee is allowed for statistical purpose

Bench: Shri Chandra Poojariassessment Year: 2013-14

3) of the Act on 29.01.2016 making additions of Rs. 14,80,939/- on account of partial disallowance of deduction claimed u/s 57 of the Act and added this amount to the total income of the assessee bringing this amount to tax. The date of service of the assessment order and the demand notice on the assessee was effectuated

SMT. LIZY GEORGE,BANGALORE vs. ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE- 7(1), BANGALORE

In the result, the appeal of the assessee is partly allowed

Bench: Smt. Beena Pillai & Shri Laxmi Prasad Sahuassessment Year : 2005-06

3. CIT v. Aggarwal Engg. Co. [2008] 302 ITR 246/2006] 156 Taxman 40 (Punj. & Har.) @ 249 4. CIT v. Amman Steel & Allied Industries [2015] 377 ITR 568 (Mad.) @ 580 Page 11 of 34 15. The principle that if a finding offact is not challenged as being perverse, the High Court is bound to accept such finding. Therefore, as no such

CHIGURUVADA DILEEP KUMAR ,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-3(3)(1) , BANGALORE

In the result, the appeal filed by assessee in ITA No

Bench: Smt Beena Pillai & Shri Laxmi Prasad Sahu

249, grant immunity from imposition of penalty under section 270Aand initiation of proceedings under section 276C or section 276CC, where the proceedings for penalty under section 270A has not been initiated under the circumstances referred to in sub-section (9) of the said section 270A.” Also as per CBDT Notification No 3/2022, dated 16.07.22, filing of Form 68 is mandatorily

CHIGURUVADA DILEEPKUMAR,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME-TAX, CIRCLE-3(3)(1), BENGALURU

In the result, the appeal filed by assessee in ITA No

Bench: Smt Beena Pillai & Shri Laxmi Prasad Sahu

249, grant immunity from imposition of penalty under section 270Aand initiation of proceedings under section 276C or section 276CC, where the proceedings for penalty under section 270A has not been initiated under the circumstances referred to in sub-section (9) of the said section 270A.” Also as per CBDT Notification No 3/2022, dated 16.07.22, filing of Form 68 is mandatorily

M/S. SUJATHA NARAYANAN & ASSOCIATES,HASSAN vs. ACIT, HASSAN

In the result, the appeals of the assessee are partly allowed for statistical purposes and that of the revenue are dismissed

Bench: Shri Sunil Kumar Yadav & Shri S. Jayaraman

disallowance. For these reasons and that the grounds of appeal which may be urged at the time of hearing of appeal by the Hon'ble ITAT, the order of the Ld. CIT(A) may be set aside and that of the Assessing Officer restored.” 3. During the course of hearing, the ld. counsel for the assessee has invited our attention

DCIT, HASSAN vs. M/S SUJATHA NARAYAN & ASSOCIATES, HASSAN

In the result, the appeals of the assessee are partly allowed for statistical purposes and that of the revenue are dismissed

Bench: Shri Sunil Kumar Yadav & Shri S. Jayaraman

disallowance. For these reasons and that the grounds of appeal which may be urged at the time of hearing of appeal by the Hon'ble ITAT, the order of the Ld. CIT(A) may be set aside and that of the Assessing Officer restored.” 3. During the course of hearing, the ld. counsel for the assessee has invited our attention

M/S DESAI & CO.,HUBBALLI vs. ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE-1(1), HUBBALLI

In the result, the appeal of the assessee is partly allowed for statistical purposes

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

section 249[3] of the Act in the most judicious manner to promote and uphold the substantial cause of justice, on the facts and circumstances of the case. 4. Without Prejudice the learned Commissioner of Income-tax [Appeals] is not justified in not adjudicating all the grounds raised by the Appellant on merits which is in grave violation of principles

HEDDUR VYAVASAYA SEVA SAHAKARA SANGA NIYAMITHA ,SHIMOGA vs. INCOME TAX OFFICER, WARD-1 & TPS , SHIMOGA

In the result, the appeal of the assessee is allowed for statistical purposes

Bench: Shri Waseem Ahmed & Shri Keshav Dubeyassessment Year: 2018-19

disallowed the claim under section 80AC of the Act and completed the assessment under section 147 r.w.s. 144B. 12.1 It is not in dispute that the assessee filed the return of income only after the issuance of notice under section 148 of the Act and that the return was filed belatedly. The explanation for such delay, as submitted

INTACT DEVELOPERS PRIVATE LIMITED,BANGALORE vs. DCIT, CENTRAL CIRCLE-1(2), BANGALORE

Bench: Shri Waseem Ahmed & Shri Keshav Dubey

disallow some claim, it is mandatory on the part of the AO to issue a statutory notice u/s.143(2) of the Act. Once the assessee had requested the AO to treat the return of income filed u/s.139(1) of the Act as the return in response to notice u/s.148 of the Act, then the AO ought to have issued

INTACT DEVELOPERS PRIVATE LIMITED,BANGALORE vs. DCIT, CENTRAL CIRCLE-1(2), BANGALORE

Bench: Shri Waseem Ahmed & Shri Keshav Dubey

disallow some claim, it is mandatory on the part of the AO to issue a statutory notice u/s. 143(2) of the Act. Once the assessee had requested the AO to treat the return of income filed u/s. 139(1) of the Act as the return in response to notice u/s. 148 of the Act, then the AO ought