COMMISSIONER OF INCOME TAX-III V. M/S. TATA ELXSI LTD

ITA/625/2013

AI Insights

This case involves an Income Tax Appeal filed by the Commissioner of Income Tax-III and the Deputy Commissioner of Income Tax against Tata Elxsi Ltd. The appeal was heard by the Karnataka High Court, which decided to dispose of the appeal based on precedents set in earlier cases involving Yokogawa India Ltd. and Tata Elxsi Ltd. The main legal contention revolved around the interpretation of certain provisions of the Income Tax Act, 1961, as they applied to the assessment year 2007-08. The court's decision favored the assessee, Tata Elxsi Ltd., aligning with previous judgments. However, the revenue was granted the liberty to seek revival of the appeal depending on the outcome of their SLPs in the Supreme Court.

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 729046 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 25-04-2014
• Assessment Year: misc
• Other Referred Cases: Commissioner of Income Tax v. Yokogawa India Ltd, Tata Elxsi Ltd. [349 ITR 98 (kar)]
• Laws Referred To: Income Tax Act 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: S SHARATH
• Assessee Lawyers: E I SANMATHI
• Keywords: Assessment Year 2007-08; Income tax appeal; Income tax appellate tribunal; Substantial questions of law
• Section: 260-A

Judgement Text

" 1 IN THE HIGH COURT OF KARNATAKA AT BANGALORE DATED THIS THE 25th DAY OF APRIL 2014 PRESENT THE HON’BLE MR. JUSTICE DILIP B BHOSALE AND THE HON’BLE MR. JUSTICE B MANOHAR ITA.NO.625/2013 BETWEEN 1. COMMISSIONER OF INCOME TAX-III CENTRAL REVENUE BUILDINGS QUEENS ROAD BANGALORE 560001 2. THE DEPUTY COMMISSIONER OF INCOME TAX CIRCLE 12(4) BANGALORE 560 001 ... APPELLANTS (BY SRI E I SANMATHI, ADV.,) AND M/S. TATA ELXSI LTD ITPB ROAD, HOODY WHITEFILED ROAD BANGALORE-560048 ... RESPONDENT (BY SRI S SHARATH, ADV., FOR SRI CHYTHANYA K K, ADV.,) THIS ITA FILED UNDER SEC.260-A OF INCOME TAX ACT 1961, ARISING OUT OF ORDER DATED:12/06/2013 PASSED IN ITA NO.1295/BANG/2012, FOR THE ASSESSMENT YEAR 2007-08 PRAYING TO: 1. 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. 2. SET ASIDE THE COMMON APPELLATE ORDER DATED:12/06/2013 PASSED BY THE INCOME TAX APPELLATE TRIBUNAL, 'A' BENCH, BANGALORE, IN APPEAL PROCEEDINGS NO.I.T.A.NO.1295/BANG/2012 FOR ASSESSMENT YEAR 2 2007-08 AS SOUGHT FOR IN THIS APPEAL. THIS ITA COMING ON FOR ADMISSION, THIS DAY, Dilip B. Bhosale J., DELIVERED THE FOLLOWING: PC: We have heard learned counsel for the parties. By consent, the appeal is heard for final disposal at the stage of admission. 2. Mr.S.Sharath, learned counsel, holding for Mr.Chythanya, for the respondent, at the outset, invited our attention to the judgments of this Court in Commissioner of Income Tax v. Yokogawa India Ltd, in ITA No.78/2011 & 918/2011 decided on 9.8.2011 and in Tata Elxsi Ltd., [349 ITR 98 (kar)] and submitted that the substantial questions of law raised in this appeal are squarely covered by those judgments and they deserve to be answered in favour of the assessee and against the revenue in terms thereof. Having confronted with this, Mr.E.I.Sanmathi, learned counsel appearing for the appellants-revenue submitted that the revenue has filed Special Leave Petitions in the Supreme Court against the 3 aforementioned judgments of this Court and the appeals are pending. He, however, fairly states that if liberty is given to the appellants to seek revival of this appeal in the event the revenue succeeds in the Supreme Court, this appeal may be disposed of in terms of those judgments. 3. Learned counsel appearing for the respondent has no objection in granting the liberty to seek revival, as prayed for. In the circumstances, we dispose of this appeal in terms of the judgments of this Court in Yokogawa India Ltd., and Tata Elxsi Ltd., and answer all the substantial questions of law in favour of the assessee and against the revenue subject to the right of the revenue to seek revival of this appeal in the event they succeed in the Supreme Court. Sd/- JUDGE Sd/- JUDGE TL 4 DBBJ & BMJ: ITA 625/2013 29.04.2014 PC: ORDER ON ‘FOR BEING SPOKEN TO’ We disposed of this Income Tax Appeal vide order dated 25.04.2014 granting liberty to the revenue to seek revival of this appeal in the event they succeed in Supreme Court where they have filed Special Leave Petitions/Civil appeals against the judgments of this Court in Yokogawa India Ltd., and Tata Elxsi Ltd., Yesterday, some more matters were placed before us which were covered by the judgments of this Court in Yokogawa India Ltd., and Tata Elxsi Ltd., While disposing of those matters instead of granting liberty to the Revenue to seek revival, we allowed the Assessing Officer to pass consequential order after disposal of the SLPs/Civil Appeals in the Supreme 5 Court. In view thereof, the appellants have moved this court “for being spoken to” with the prayer to pass similar order in this appeal instead of granting liberty to seek revival of the appeal. Learned counsel appearing for the respondent has no objection for passing order to that effect. In the circumstances, paragraph-3 in the order dated 25.04.2014 stands modified as under: “We dispose of this appeal in terms of the judgments of this Court in Yokogawa India Ltd., and Tata Elxsi Ltd., and answer all the substantial questions of law in favour of the assessee and against the revenue with direction to the Assessing Officer to pass consequential order only after disposal of SLPs./Civil Appeals pending 6 in the Supreme Court against the judgments of this Court in those cases.” Sd/- JUDGE Sd/- JUDGE TL "