The Commissioner of Income Tax, Central Circle, C.R. Building, Queens Road, Bangalore and The Deputy Commissioner of Income Tax, Central Circle-I, C.R. Building, Queens Road, Bangalore and The Assistant Commissioner of Income Tax, Circle-12(3), C.R. Building, Queens Road, Bangalore and The Assistant Commissioner of Income Tax, Circle-12(2), C.R. Building, Queens Road, Bangalore V. M/s. United Glass Bottles Manufacturing Co. Ltd. and M/s. Toyoma Electronic Ltd. and M/s. SST (INDIA) Pvt. Ltd. and M/s. Vikram Associates Pvt. Ltd. and M/s. Sasken Communication Technologies Ltd.

ITA/73/2007

AI Insights

The case involves multiple Income Tax Appeals (ITAs) filed by the Commissioner of Income Tax and the Deputy/Assistant Commissioner of Income Tax against various respondents, including M/s. United Glass Bottles Manufacturing Co. Ltd., M/s. Toyoma Electronic Ltd., M/s. SST (INDIA) Pvt. Ltd., M/s. Vikram Associates Pvt. Ltd., and M/s. Sasken Communication Technologies Ltd. The appeals were filed under Section 260-A of the Income Tax Act, 1961, challenging the orders of the ITAT, Bangalore, which had confirmed the orders of the Appellate Commissioner. The main legal issue was the computation of interest under Sections 234B and 234C of the Income Tax Act, particularly concerning the adjustment of MAT credit. The High Court's decision was influenced by the Supreme Court's ruling in the case of Commissioner of Income Tax Vs. Tulsyan NEC Ltd.

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 811055 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 13-08-2012
• Assessment Year: misc
• Other Referred Cases: Commissioner of Income Tax Vs. Tulsyan NEC Ltd. (2011) 330 ITR 226
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: VEERABHADRAIAH; M S PRIME LAW ASSOCIATES ADVOCATES; S PARTHASARATHI; CHYTHANYA
• Assessee Lawyers: K V ARAVIND
• Keywords: Interest computation; ITAT order; MAT credit; Substantial questions of law
• Section: 234B; 234C; 260-A

Judgement Text

"1 IN THE HIGH COURT OF KARNATAKA, BANGALORE DATED THIS THE 13TH DAY OF AUGUST, 2012 PRESENT THE HON'BLE MR. JUSTICE K.SREEDHAR RAO AND THE HON'BLE MR. JUSTICE B.MANOHAR I.T.A. No.73 OF 2007 C/W. I.T.A.Nos.118, 147, 148 & 152/2007 I.T.A. No.73 OF 2007:- BETWEEN:- 1. The Commissioner of Income Tax, Central Circle, C.R. Building, Queens Road, Bangalore. 2. The Deputy Commissioner of Income Tax, Central Circle-I, C.R. Building, Queens Road, Bangalore. Appellants (By Sri K.V. Aravind, Advocate) AND:- M/s. United Glass Bottles Manufacturing Co. Ltd., Brewery House, 7th Mile, Kanakapura Road, Bangalore. Respondent (By Sri Veerabhadraiah, Adv. for Sri S.Sukumar, Adv.) 2 This I.T.A. is filed U/s.260-A of I.T. Act, 1961 arising out of order dated 14.07.2006 passed in I.T.A.No.35/Bang/2005 for the Assessment Year 1998-99, praying that this Hon’ble Court may be pleased to (i) formulate the substantial questions of law stated therein and (ii) allow the appeal and set-aside the order of the ITAT, Bangalore in ITA No.35/Bang/2005 dated 14.07.2006 confirming the order of the Appellate Commissioner and confirm the order passed by the Dy. Commissioner of Income Tax, Circle-I, Bangalore, in the interest of justice and equity. I.T.A. No.118 OF 2007:- BETWEEN:- 1. The Commissioner of Income Tax, Central Circle, C.R. Building, Queens Road, Bangalore. 2. The Assistant Commissioner of Income Tax, Circle-12(3), C.R. Building, Queens Road, Bangalore. Appellants (By Sri K.V. Aravind, Advocate) AND:- M/s. Toyoma Electronic Ltd., 36A, KIADB Industrial Area, Hosakote, Bangalore. Respondent (By M/s. Prime Law Associates, Advocates) 3 This I.T.A. is filed U/s.260-A of I.T. Act, 1961 arising out of order dated 16.06.2006 passed in I.T.A.No.3435/Bang/2004 for the Assessment Year 2000-01, praying that this Hon’ble Court may be pleased to (i) formulate the substantial questions of law stated therein and (ii) allow the appeal and set-aside the order of the ITAT, Bangalore in ITA No.3435/Bang/2004 dated 16.06.2006 confirming the order of the Appellate Commissioner and confirm the order passed by the Asst. Commissioner of Income Tax, Circle-12(3), Bangalore, in the interest of justice and equity. I.T.A. No.147 OF 2007:- BETWEEN:- 1. The Commissioner of Income Tax, Central Circle, C.R. Building, Queens Road, Bangalore. 2. The Assistant Commissioner of Income Tax, Circle-12(2), Bangalore. Appellants (By Sri K.V. Aravind, Advocate) AND:- M/s. SST (INDIA) Pvt. Ltd., 68/1, Lavelle Road, Bangalore. Respondent (By Sri S. Parthasarathi, Advocate) This I.T.A. is filed U/s.260-A of I.T. Act, 1961 arising out of order dated 30.06.2006 passed in I.T.A.No.52/Bang/2005 for the Assessment Year 2001-02, praying that this Hon’ble Court may be pleased to (i) 4 formulate the substantial questions of law stated therein and (ii) allow the appeal and set-aside the order of the ITAT, Bangalore in ITA No.52/Bang/2005 dated 30.06.2006 confirming the order of the Appellate Commissioner and confirm the order passed by the Dy. Commissioner of Income Tax, Circle-12(2), Bangalore, in the interest of justice and equity. I.T.A. No.148 OF 2007:- BETWEEN:- 1. The Commissioner of Income Tax, Central Circle, C.R. Building, Queens Road, Bangalore. 2. The Assistant Commissioner of Income Tax, Circle-12(3), Bangalore. Appellants (By Sri K.V. Aravind, Advocate) AND:- M/s. Vikram Associates Pvt. Ltd., No.332, 5th Main, 1st Block, Koramangala, Bangalore. Respondent (By Sri S. Parthasarathi, Advocate) This I.T.A. is filed U/s.260-A of I.T. Act, 1961 arising out of order dated 06.07.2006 passed in I.T.A.No.391/Bang/2005 for the Assessment Year 2001-02, praying that this Hon’ble Court may be pleased to (i) formulate the substantial questions of law stated therein and (ii) allow the appeal and set-aside the order of the ITAT, Bangalore in ITA No.391/Bang/2005 dated 06.07.2006 5 confirming the order of the Appellate Commissioner and confirm the order passed by the Asst. Commissioner of Income Tax, Circle-12(3), Bangalore, in the interest of justice and equity. I.T.A. No.152 OF 2007:- BETWEEN:- 1. The Commissioner of Income Tax, Central Circle, C.R. Building, Queens Road, Bangalore. 2. The Assistant Commissioner of Income Tax, Circle-12(2), C.R. Building, Queens Road, Bangalore. Appellants (By Sri K.V. Aravind, Advocate) AND:- M/s. Sasken Communication Technologies Ltd., No.139/25, Amarjyothi Layout, Ring Road, Domlur P.O., Bangalore – 560 071. Respondent (By Sri Chythanya K.K., Advocate) This I.T.A. is filed U/s.260-A of I.T. Act, 1961 arising out of order dated 06.07.2006 passed in I.T.A.No.558/Bang/2005 for the Assessment Year 2000-01, praying that this Hon’ble Court may be pleased to (i) formulate the substantial questions of law stated therein and (ii) allow the appeal and set-aside the order of the ITAT, Bangalore in ITA No.558/Bang/2005 dated 06.07.2006 confirming the order of the Appellate Commissioner and 6 confirm the order passed by the Assistant Commissioner of Income Tax, Circle-12(2), Bangalore, in the interest of justice and equity. These appeals are coming on for final hearing this day, SREEDHAR RAO, J., delivered the following: J U D G M E N T The Supreme Court in the case of Commissioner of Income Tax Vs. Tulsyan NEC Ltd., reported in (2011) 330 ITR 226 has held that MAT credit should be given before computing interest U/Ss.234B and 234C of Income Tax Act. In view of the said decision, the question of law is answered against the revenue. Accordingly, the appeals are dismissed. Sd/- JUDGE Sd/- JUDGE NM* "