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

7 are regarding disallowance of software expenses of Rs.1,45,000/- u/s 40(a)(ia) of the Act for not making TDS under section 194J of the Act. 12. Facts of the case are that during the year under consideration, the assessee had incurred a sum of Rs. 585,30,20,535 towards purchase of software. Out of the said

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

94,717 respectively from the profit & turnover of 10AA-100% eligible units while computing deduction under section 10AA without specifying any reason in the show cause notice and order and the learned CIT(A) erred in confirming the same. 2.2. The learned CIT(A) has erred in relying on the Explanation to below subsection 1 of section 10AA without appreciating

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.

94,717\nrespectively from the profit & turnover of 10AA-100% eligible units while\ncomputing deduction under section 10AA without specifying any reason in\nthe show cause notice and order and the learned CIT(A) erred in confirming\nthe same.\n\n2. 2. The learned CIT(A) has erred in relying on the Explanation to below\nsubsection 1 of section 10AA

TEXO THE BUILDERS ,UDUPI vs. ACIT, CENTRAL CIRCLE-2, MANGALORE

In the result, we dismiss grounds raised by the assessee

Bench: Shri.Laxmi Prasad Sahu & Shri.Soundararajan K

7. In our opinion, there is little merit in this contention. Section 40-A(3) must not be read in isolation or to the exclusion of Rule 6-DD. The section must be read along with the rule. If read together, it will be clear that the provisions are not intended to restrict the business activities. There is no restriction

DCIT, CIRCLE-1(1), MANGALURU vs. NEW MANGALORE PORT AUTHORITY, MANGALURU

In the result, the appeal of the Revenue on this for the Assessment Years

Bench: Shri. Laxmi Prasad Sahu & Shri. Soundararajan K

94,110/- Disallowance of 2018-19 25/1071845158(1) expenses under dated 03.01.2025 section 14A of the Income Tax Act (hereinafter called ‘the Act’) ITA Nos.723 to 727/Bang/2025 482 to 486/Bang/2025 Page 3 of 14 Ground Nos.3 and 4: 73,67,67,243/- Disallowance of interest on reserve fund 5. 727/Bang/2025 ITBA/NFAC/S/250/2024- Ground Nos.1

NEW MANGALORE PORT AUTHORITY,MANGALORE vs. DCIT, CIRCLE-1 & TPS, MANGALORE

In the result, the appeal of the Revenue on this for the Assessment Years

Bench: Shri. Laxmi Prasad Sahu & Shri. Soundararajan K

94,110/- Disallowance of 2018-19 25/1071845158(1) expenses under dated 03.01.2025 section 14A of the Income Tax Act (hereinafter called ‘the Act’) ITA Nos.723 to 727/Bang/2025 482 to 486/Bang/2025 Page 3 of 14 Ground Nos.3 and 4: 73,67,67,243/- Disallowance of interest on reserve fund 5. 727/Bang/2025 ITBA/NFAC/S/250/2024- Ground Nos.1

DCIT, CIRCLE 1(1) & TPS, MANGALURU vs. NEW MANGALORE PORT AUTHORITY, MANGALURU

In the result, the appeal of the Revenue on this for the Assessment Years

Bench: Shri. Laxmi Prasad Sahu & Shri. Soundararajan K

94,110/- Disallowance of 2018-19 25/1071845158(1) expenses under dated 03.01.2025 section 14A of the Income Tax Act (hereinafter called ‘the Act’) ITA Nos.723 to 727/Bang/2025 482 to 486/Bang/2025 Page 3 of 14 Ground Nos.3 and 4: 73,67,67,243/- Disallowance of interest on reserve fund 5. 727/Bang/2025 ITBA/NFAC/S/250/2024- Ground Nos.1

NEW MANGALORE PORT AUTHORITY,MANGALORE vs. DCIT, CIRCLE-1 & TPS, MANGALORE

In the result, the appeal of the Revenue on this for the Assessment Years

Bench: Shri. Laxmi Prasad Sahu & Shri. Soundararajan K

94,110/- Disallowance of 2018-19 25/1071845158(1) expenses under dated 03.01.2025 section 14A of the Income Tax Act (hereinafter called ‘the Act’) ITA Nos.723 to 727/Bang/2025 482 to 486/Bang/2025 Page 3 of 14 Ground Nos.3 and 4: 73,67,67,243/- Disallowance of interest on reserve fund 5. 727/Bang/2025 ITBA/NFAC/S/250/2024- Ground Nos.1

DEPUTY COMMISSIONER OF INCOME TAX, MANGALURU vs. NEW MANGALORE PORT AUTHORITY, MANGALURU

In the result, the appeal of the Revenue on this for the Assessment Years

Bench: Shri. Laxmi Prasad Sahu & Shri. Soundararajan K

94,110/- Disallowance of 2018-19 25/1071845158(1) expenses under dated 03.01.2025 section 14A of the Income Tax Act (hereinafter called ‘the Act’) ITA Nos.723 to 727/Bang/2025 482 to 486/Bang/2025 Page 3 of 14 Ground Nos.3 and 4: 73,67,67,243/- Disallowance of interest on reserve fund 5. 727/Bang/2025 ITBA/NFAC/S/250/2024- Ground Nos.1

DCIT, CIRCLE 1(1) & TPS, MANGALURU vs. NEW MANGALORE PORT AUTHORITY, MANGALURU

In the result, the appeal of the Revenue on this for the Assessment Years

Bench: Shri. Laxmi Prasad Sahu & Shri. Soundararajan K

94,110/- Disallowance of 2018-19 25/1071845158(1) expenses under dated 03.01.2025 section 14A of the Income Tax Act (hereinafter called ‘the Act’) ITA Nos.723 to 727/Bang/2025 482 to 486/Bang/2025 Page 3 of 14 Ground Nos.3 and 4: 73,67,67,243/- Disallowance of interest on reserve fund 5. 727/Bang/2025 ITBA/NFAC/S/250/2024- Ground Nos.1

DCIT, CIRCLE 1(1) & TPS, MANGALURU vs. NEW MANGALORE PORT AUTHORITY, MANGALURU

In the result, the appeal of the Revenue on this for the Assessment Years

Bench: Shri. Laxmi Prasad Sahu & Shri. Soundararajan K

94,110/- Disallowance of 2018-19 25/1071845158(1) expenses under dated 03.01.2025 section 14A of the Income Tax Act (hereinafter called ‘the Act’) ITA Nos.723 to 727/Bang/2025 482 to 486/Bang/2025 Page 3 of 14 Ground Nos.3 and 4: 73,67,67,243/- Disallowance of interest on reserve fund 5. 727/Bang/2025 ITBA/NFAC/S/250/2024- Ground Nos.1

NEW MANGALORE PORT AUTHORITY,MANGALORE vs. DCIT, CIRCLE-1 & TPS, MANGALORE

In the result, the appeal of the Revenue on this for the Assessment Years

Bench: Shri. Laxmi Prasad Sahu & Shri. Soundararajan K

94,110/- Disallowance of 2018-19 25/1071845158(1) expenses under dated 03.01.2025 section 14A of the Income Tax Act (hereinafter called ‘the Act’) ITA Nos.723 to 727/Bang/2025 482 to 486/Bang/2025 Page 3 of 14 Ground Nos.3 and 4: 73,67,67,243/- Disallowance of interest on reserve fund 5. 727/Bang/2025 ITBA/NFAC/S/250/2024- Ground Nos.1

NEW MANGALORE PORT AUTHORITY,MANGALORE vs. DCIT, CIRCLE-1 & TPS, MANGALORE

In the result, the appeal of the Revenue on this for the Assessment Years

Bench: Shri. Laxmi Prasad Sahu & Shri. Soundararajan K

94,110/- Disallowance of 2018-19 25/1071845158(1) expenses under dated 03.01.2025 section 14A of the Income Tax Act (hereinafter called ‘the Act’) ITA Nos.723 to 727/Bang/2025 482 to 486/Bang/2025 Page 3 of 14 Ground Nos.3 and 4: 73,67,67,243/- Disallowance of interest on reserve fund 5. 727/Bang/2025 ITBA/NFAC/S/250/2024- Ground Nos.1

NEW MANGALORE PORT AUTHORITY,MANGALORE vs. DCIT, CIRCLE-1 & TPS, MANGALURU

In the result, the appeal of the Revenue on this for the Assessment Years

Bench: Shri. Laxmi Prasad Sahu & Shri. Soundararajan K

94,110/- Disallowance of 2018-19 25/1071845158(1) expenses under dated 03.01.2025 section 14A of the Income Tax Act (hereinafter called ‘the Act’) ITA Nos.723 to 727/Bang/2025 482 to 486/Bang/2025 Page 3 of 14 Ground Nos.3 and 4: 73,67,67,243/- Disallowance of interest on reserve fund 5. 727/Bang/2025 ITBA/NFAC/S/250/2024- Ground Nos.1

TEXO THE BUILDERS,UDUPI vs. ACIT, CENTRAL CIRCLE-2, MANGALORE

In the result, we dismiss grounds raised by the assessee

7. In our opinion, there is little merit in this contention. Section 40-A(3)\nmust not be read in isolation or to the exclusion of Rule 6-DD. The\nsection must be read along with the rule. If read together, it will be\nclear that the provisions are not intended to restrict the business\nactivities. There is no restriction

CENTURY SHELTORS,BANGALORE vs. ACIT, CIRCLE-2(2), BANGALORE

In the result, the appeals of the assessees are allowed

Bench: Shri Chandra Poojari & Shri Anikesh Banerjee

94,64,054/- 11,47,14,845/- 3. 2015-16 (-) 24,58,17,366/- 12,85,55,078/- Total 33,46,60,580/- 3. In these cases, assessment orders were framed u/s 143(3) of the Income-tax Act,1961 ['the Act' for short] disallowing the interest on borrowed capital paid to the partners by these firms. While disallowing interest

CENTURY SHELTORS,BANGALORE vs. ACIT, CIRCLE-2(2), BANGALORE

In the result, the appeals of the assessees are allowed

Bench: Shri Chandra Poojari & Shri Anikesh Banerjee

94,64,054/- 11,47,14,845/- 3. 2015-16 (-) 24,58,17,366/- 12,85,55,078/- Total 33,46,60,580/- 3. In these cases, assessment orders were framed u/s 143(3) of the Income-tax Act,1961 ['the Act' for short] disallowing the interest on borrowed capital paid to the partners by these firms. While disallowing interest

CENTURY SHELTORS,BANGALORE vs. ACIT, CIRCLE-2(2), BANGALORE

In the result, the appeals of the assessees are allowed

Bench: Shri Chandra Poojari & Shri Anikesh Banerjee

94,64,054/- 11,47,14,845/- 3. 2015-16 (-) 24,58,17,366/- 12,85,55,078/- Total 33,46,60,580/- 3. In these cases, assessment orders were framed u/s 143(3) of the Income-tax Act,1961 ['the Act' for short] disallowing the interest on borrowed capital paid to the partners by these firms. While disallowing interest

M/S. CENTURY SILICON CITY,BANGALORE vs. DCIT, CIRCLE-1(2)(1, BANGALORE

In the result, the appeals of the assessees are allowed

Bench: Shri Chandra Poojari & Shri Anikesh Banerjee

94,64,054/- 11,47,14,845/- 3. 2015-16 (-) 24,58,17,366/- 12,85,55,078/- Total 33,46,60,580/- 3. In these cases, assessment orders were framed u/s 143(3) of the Income-tax Act,1961 ['the Act' for short] disallowing the interest on borrowed capital paid to the partners by these firms. While disallowing interest