Deputy Commissioner of Income TAx Circle-4(1)(1), Bangalore V. M/s Karnataka State Industrial Investments & Developemnt Corporation Limited , Bangalore

ITA 1514/BANG/2017

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 7897 (ITAT-BANGALORE)
• Duration Of Justice: 1 year(s) 2 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-01-2019
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2012-2013
• Appeal Filed On: 26-10-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: M VIJAY KUMAR
• Assessee Lawyers: R E BALASUBRAMANIAM
• Section: 143(3); 142(1); 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, B E NGAL U R U BEFORE SHRI A .K. GARODIA , ACCOUNTANT MEMBER AND SHRI PAVAN KUMAR GADALE , JUDICIAL MEMBER ITA NO. 1514 /BANG/201 7 (ASSESSMENT YEAR: 2012 - 13 ) DEPUTY COMMISSIONER OF INCOME - TAX, CIRCLE 4(1)(1), BENGALURU. VS. APPELLANT KARNATAKA STATE INDUSTRIAL INVESTMENT & DEVELOPMENT CORPORATION LTD., KHANIJA BHAVAN , 4 TH FLOOR, EAST WING, 49, RACE COURSE ROAD, BENGALURU - 560001. PAN: AAACK 5531 H RESPONDENT APPELLANT BY : SHRI M.VIJA Y KUMAR, ADDL.CIT(DR) RESPONDENT BY : SHRI R.E.BALASUBRAMANIAM, CA. DATE OF HEARING : 01/01/2019 DATE OF PRONOUNCEMENT: 02 /01/2019 O R D E R PER PAVAN KUMAR GADALE , J M : THE REVENUE HAS FILED THE APPEAL AGAINST THE ORDER OF THE CIT(A) - 4, BENGALURU, IN ITA NO.353/185/DCIT - C - 4(1)(1)/CIT(A) - 4/14 - 15 DATED 28/02/2017 . 2. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: ITA NO. 1514 /BANG/201 17 PAGE 2 OF 5 3. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS IN BUSINESS OF FINANCING OF INDUSTRIAL UNITS, CO NSTRUCTION AND OWNING OF COMMERCIAL BUILDINGS ON LEASE/JOINT VENTURE AND UNDERTAKING INFRASTRUCTURE PROJECTS ON BEHALF OF GOVERNMENT OF KARNATAKA AND FILED RETURN OF INCOME FOR THE ASSESSMENT YEAR 2012 - 13 ON 26/09/2012 WITH LOSS OF RS.29,62,55,691/ - . SUBS EQUENTLY THE CASE WAS SELECTED FOR SCRUTINY AND NOTICE U/S 143(2) OF THE INCOME - TAX ACT, 1961 [HEREINAFTER REFERRED TO AS 'THE ACT' FOR SHORT] WAS ISSUED CALLING FOR VARIOUS INFORMATION AND ALSO NOTICE U/S 142(1) OF THE ACT WAS ISSUED. IN THE COURSE OF AS SESSMENT PROCEEDINGS, THE ASSESSEE HAS FILED DETAILS AND THE AO HAS DEALT ON THE ISSUE S ON CONTRIBUTION TO EKADANTA GELEYARA BALAGA EMPLOYEES ASSOCIATION AND SC/ST EMPLOYEES ASSOCIATION AND DISALLOWANCE UNDER THE PROVISIONS OF SECTION 14A OF THE ACT AND ALSO ON THE SUBMISSIONS MADE BY ITA NO. 1514 /BANG/201 17 PAGE 3 OF 5 THE ASSESSEE IN RESPECT OF PROVISION FOR LEAVE ENCASHMENT AND PRIOR PERIOD EXPENDITURE AND FINALLY MADE ADDITION U/S 40A(9) CONTRIBUTION, DISALLOWANCE U/S 14A AND PRIOR PERIOD EXPENDITURE TO THE RETURNED INCOME AND DETERMI NED THE LOSS OF RS.124,799,594/ - AND PASSED THE ORDER U/S 143(3) OF THE ACT DATED 31/10/2014. 4. AGGRIEVED BY THE ORDER OF THE AO, THE ASSESSEE FILED AN APPEAL WITH THE CIT(A). IN THE APPELLATE PROCEEDINGS, THE CIT(A) CONSIDER ING GROUNDS OF APPEAL, THE SU BMISSIONS AND JUDICIAL DECISIONS AND THE PROVISIONS OF LAW, HAS PARTLY ALLOWED THE APPEAL. 5. AGGRIEVED BY THE ORDER OF THE CIT(A), THE REVENUE HAS FILED AN APPEAL BEFORE THE TRIBUNAL IN RESPECT OF RELIEF GRANTED BY THE CIT(A) AND T HE LEARNED DEPARTME NTAL REPRESENTATIVE RELIED ON THE ORDER OF THE AO. PER CONTRA, T HE LD. AR SUBMITTED THAT THE MATTER WAS DEALT BY THE CO - ORDINATE BENCH OF TRIBUNAL IN THE ASSESSEE S OWN CASE FOR ASSESSMENT YEAR S 2008 - 09 AND 2010 - 11 REPORTED IN (2017) 54 ITR (TRIB) 425 (ITAT, BANG) A ND FURNISHED COPY AND PRAYED FOR DISMISSAL OF THE REVENUE S APPEAL. 6. WE HEARD RIVAL SUBMISSIONS AND PERUSED MATERIAL ON RECORD. PRIMA FACIE , THE REVENUE HAS FILED THE APPEAL ON THE TWO ADDITIONS DELETED BY THE CIT(A) . WHEREAS LD. AR R ELI ED ON ITA NO. 1514 /BANG/201 17 PAGE 4 OF 5 THE ORDER OF THE CO - ORDINATE BENCH OF THE TRIBUNAL IN THE ASSESSEE S OWN CASE FOR ASSESSMENT YE ARS 2008 - 09 AND 2010 - 11 (SUPRA). WHEN WE PERUSED THE ORDER OF THE CO - ORDINATE BENCH OF TRIBUNAL FOR ASSESSMENT 2008 - 00 AND 2010 - 11 (SUPRA) , WE FOUND THA T THE ORDER WAS PASSED IN THE NAME OF KARNATAKA STATE INDUSTRIAL INFRASTRUCTURE DEVELO PMENT CORPORATION LTD. VS. DCIT (SUPRA). WHEN A QUERY WAS RAISED TO THE LD. AR THE REASONS FOR DIFFERENCE IN THE NAME, LD. AR SUBMITTED THAT THE COMPANY NAME HAS BEEN CHA NGED LONG BACK. 7. WE , ON PERUSAL OF THE ASSESSMENT ORDER U/S 143(3) DATED 31/10/2014 FOUND THAT THE ASSESSMENT WAS MADE IN THE NAME OF M/S.KARNATAKA STATE INDUSTRIAL AND INFRASTRUCTURE DEVELOPMENT CORPORATION LTD. WHEREAS ON APPEAL; THE CIT(A) HAS PASSED THE APPELLATE ORDER IN THE NAME OF M/S KARNATAKA STATE INDUSTRIAL INVESTMENT & DEVELOPMENT CORPORATION LTD., WE COULD NOT UNDERSTAND THE REASON WHY THE ORDER WAS PASSED IN THE NAME REFERRED IN THE CIT(A) S APPELLATE ORDER. THE LD. AR S EXPLA IN ED THAT THERE IS A MISTAKE AND PRAYED FOR AN OPPORTUNITY BEFORE THE CIT(A) TO RECTIFY THE ORDER IN THE APPELLATE PROCEEDINGS IN RESPECT OF N AME OF THE APPELLANT. WE OBSERVE D THERE IS A DIFFERENCE IN THE NAME O N COMPARISON OF NAME OF THE APPELLANT IN ASSES SMENT YEARS 2008 - 09 AND 2010 - 11 AND THE PRESENT ASSESSMENT YEAR BEING ASSESSMENT YEAR ITA NO. 1514 /BANG/201 17 PAGE 5 OF 5 2012 - 13. THEREFORE, IN THE INTEREST OF SUBSTANTIAL JUSTICE AND OPPORTUNITY, AS PRAYED BY THE LD. AR, WE RESTORE THIS ISSUE TO THE FILE OF THE CIT(A) FOR LIMITED PURPOSE FOR CHANGE IN THE NAME OF APPELLANT IN THE APPELLATE ORDER AND ASSESSEE SHALL CO - OPERATE IN SUBMITTING THE INFORMATION AT EARLIEST AND ALLOW THE GROUNDS OF APPEAL OF REVENUE FOR STATISTICAL PURPOSES. 8. IN THE RESULT, THE ASSESSEE S APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 02 ND JANUARY, 2019 . S D/ - SD/ - (A.K.GARODIA) (PAVAN KUMAR GADALE) ACCOUNTANT MEMBER JUDICIAL MEMBER PLACE : B EN GAL URU D A T E : 02 / 01 / 201 9 SRINIVASULU, SPS COPY TO : 1 APPELLANT 2 RESPONDENT 3 CIT(A) - 4 CIT 5 DR, ITAT, BANGALORE. 6 GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME - TAX APPELLATE TRIBUNAL B ANGALORE