Dismissed

The Pr. Commissioner of v. M/S Hindusthan Infrastructure

Karnataka HC23 Jan 2023ITA/60/2019

Case brief

AI extract

What is this about?

High Court Bench of Karnataka, via P.S.Dinesh Kumar J, dismissed the Income Tax Appeal against an ITAT order. The Court held that the Tribunal was correct to reject Section 14A disallowance given the assessee's exempt investments, aligning with precedent.

What did the court decide?

The substantial question of law is answered in favour of the Assessee and against the Revenue; Appeal dismissed; No costs.

The Pr. Commissioner of Vs M/S Hindusthan Infrastructure — Income Tax | Karnataka HC (2023)

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ITA No. 60/2019

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

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DATED THIS THE 23^RD DAY OF JANUARY, 2023

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PRESENT

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

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THE HON'BLE MR JUSTICE G BASAVARAJA

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INCOME TAX APPEAL NO. 60 OF 2019

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BETWEEN:

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Digitally signed by YASHODHA N Location: HIGH COURT OF KARNATAKA

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THE PR. COMMISSIONER OF INCOME-TAX, CIT (A) 5^TH FLOOR, BMTC BUILDING 80 FEET ROAD, KORMANGALA BENGALURU-560 095.

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THE ASST. COMMISSIONER OF INCOME-TAX, CIRCLE-3(1)(2) 2^ND FLOOR, BMTC BUILDING 80 FEET ROAD, KORMANGALA BENGALURU-560 095. …APPELLANTS

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(BY SHRI. K.V. ARAVIND, SENIOR STANDING COUNSEL)

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AND:

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M/S HINDUSTHAN INFRASTRUCTURE PROJECTS AND ENGINEERING PVT. LTD. JUPITER INNOVATION CENTRE-54 RICHMOND ROAD BENGALURU-560 025. PAN: AAACR 8981Q. …RESPONDENT (BY SMT. JINITHA CHATTERJEE, ADVOCATE FOR SHRI. S. PARTHASARATHI, ADVOCATE)

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ITA No. 60/2019

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THIS ITA IS FILED UNDER SEC.260-A OF INCOME TAX ACT 1961, ARISING OUT OF ORDER DATED: 07/09/2018 PASSED IN ITA NO.1247/BANG/2018, FOR THE ASSESSMENT YEAR 2014-2015, PRAYING TO FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED THEREIN AND ALLOW THE APPEAL BY SETTING ASIDE THE ORDERS PASSED BY THE INCOME TAX APPELLATE TRIBUNAL, BENGALURU IN ITA NO. 1247/BANG/2018 DATED: 07/09/2018 FOR ASSESSMENT YEAR 2014-2015 ANNEXURE-C AND CONFIRM THE ORDER OF THE APPELLATE COMMISSIONER CONFIRMING THE ORDER PASSED BY THE ASST. COMMISSIONER OF INCOME TAX, CIRCLE-3(1)(2), BENGALURU AND ETC

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

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JUDGMENT

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This appeal by the Revenue challenging the order dated 07.09.2018 in ITA No.1247/Bang/2018 passed by the ITAT¹ , "C" Bench, Bangalore, has been admitted to consider the following question of law:

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“Whether on the facts and circumstances of the case and in law, the Tribunal was right in holding that the disallowance made by the assessing officer

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1 Income tax Appellate Tribunal, Bengaluru Bench

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ITA No. 60/2019

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under Section 14A of the Act is not warranted ignoring the fact that the assessee had investments which are capable of earning exempt income in the past as well as for the future years and ignoring CBDT Circular No.5/2014 dated 11.02.2014?”

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Heard Shri K.V.Aravind, learned Senior Standing

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Counsel for the appellants-Revenue and Ms.Jinitha Chattergee, learned Advocate for the

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respondent-Assessee.

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At the outset, Ms.Jinitha Chatterjee submits that

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issue involved in this appeal is covered by the decision of this Court in The Commissioner of Income Tax and another Vs. M/s. Quest Global Engineering Services Pvt. Ltd,² holding the question of law in assessee’s favour.

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