Dismissed

Principal Commissioner of Income TAX-4 v. M/S Jeans Knit Pvt. Ltd.

Karnataka HC5 Jun 2023ITA/218/2022

Case brief

AI extract

What is this about?

The High Court of Karnataka dismissed the Income Tax Appeal filed by the Principal Commissioner of Income Tax. The court held that the Tribunal was justified in allowing the assessee's claim under Section 10B and setting aside the requirement to raise the claim in the return.

What did the court decide?

The appeal is dismissed; questions of law are answered in favour of the assessee against the Revenue.

Principal Commissioner of Income TAX-4 Vs M/S Jeans Knit Pvt… — Income Tax | Karnataka HC (2023)

¶1

¶2

ITA No. 218/2022

¶3

IN THE HIGH COURT OF KARNATAKA AT BENGALURU

¶4

DATED THIS THE 5^TH DAY OF JUNE, 2023

¶5

PRESENT

¶6

THE HON'BLE MR JUSTICE P.S.DINESH KUMAR

¶7

AND

¶8

THE HON'BLE MR JUSTICE T.G. SHIVASHANKARE GOWDA

¶9

INCOME TAX APPEAL NO.218 OF 2022

¶10

BETWEEN:

¶11

Digitally signed by ANUSHA V Location: HIGH COURT OF KARNATAKA

¶12

PRINCIPAL COMMISSIONER OF INCOME TAX-4 BMTC COMPLEX, KORAMANGALA BENGALURU

¶13

DEPUTY COMMISSIONER OF INCOME TAX CIRCLE 11(5), NO. 14/3 5^TH FLOOR, NRUPATHUNGA ROAD

¶14

BENGALURLU-560 001. …APPELLANTS

¶15

(BY SHRI. E.I. SANMATHI, ADVOCATE)

¶16

AND:

¶17

M/s. JEANS KNIT PVT. LTD. NO. 21-E-1, 2^ND PHASE INDUSTRIAL AREA PEENYA BENGALURU-560 058. PAN: AABCJ 4513 B …RESPONDENT

¶18

THIS ITA IS FILED UNDER SEC.260-A OF INCOME TAX ACT 1961, ARISING OUT OF ORDER DATED 12/07/2019 PASSED IN ITA NO. 1325/BANG/2014, FOR THE ASSESSMENT YEAR 2011-2012, PRAYING TO DECIDE THE FOREGOING QUESTION OF LAW AND / OR SUCH OTHER QUESTIONS OF LAW AS MAY BE FORMULATED BY THE HON'BLE COURT AS DEEMED FIT AND ETC.

¶19

THIS ITA, COMING ON FOR ORDERS , THIS DAY, P.S.DINESH KUMAR, J. , DELIVERED THE FOLLOWING:

ITA No. 218/2022

JUDGMENT

This appeal by the Revenue directed against order dated July 12, 2019 in ITA No.1325/Bang/2014 passed by the ITAT¹ , Bengaluru, for A.Y.2011-12 has been filed to consider following questions of law:

¶24

1. Whether on the facts and circumstances of the case, the Tribunal is justified in allowing the appeal of the assessee regarding allowance of claim made under section 10B of the Act despite the fact that the assessee’s business structure is formed under reconstruction of business or using the existing amenities of business for a new business, which is void as per the provisions of section 10B of the Act as clearly brought out by the assessing Officer in his order and as such order passed by Tribunal is perverse in nature?

¶25

2. Whether on the facts and circumstances of the case, the Tribunal is justified in setting aside the issue of claim made by the assessee for giving enhanced deduction under section 10B of the Act where the assessing officer has clearly brought out the fact that no additional claim can be allowed to the assessee unless the same is claimed in the return of income?

¶26