THE PR COMMISSIONER OF INCOME TAX, V. M/S. ASIA POWER PROJECTS PVT. LTD,

ITA/189/2024

AI Insights

The case involves an appeal by the Principal Commissioner of Income Tax and the Deputy Commissioner of Income-Tax against M/s. Asia Power Projects Pvt. Ltd. The appeal was filed under Section 260-A of the Income Tax Act, 1961, challenging the order dated 27th February 2024 passed by the Income-Tax Appellate Tribunal, Bengaluru, which confirmed the order of the Appellate Commissioner and the Deputy Commissioner of Income Tax. The core issue was whether the assessee was entitled to set off of brought forward book loss in the computation of income under Section 115JB of the Act. The Revenue's appeal was based on the argument that the Tribunal's decision relied on precedents that had not reached finality and was contrary to the provisions of Section 115JB and Board Circular No.495 dated 22.09.1987.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 728170 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 12-02-2025
• Assessment Year: misc
• Other Referred Cases: THE PRINCIPAL COMMISSIONER OF INCOME TAX v. Bangalore INTERNATIONAL AIRPORT LIMITED
• Laws Referred To: Income Tax Act 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: MANASA ANANTHAN
• Assessee Lawyers: Y V RAVIRAJ
• Keywords: Computation of income; Income tax appeal; Section 115JB; Set off of brought forward book loss
• Section: 115JB; 260-A

Judgement Text

" - 1 - NC: 2025:KHC:6294-DB ITA No. 189 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 12TH DAY OF FEBRUARY, 2025 PRESENT THE HON'BLE MR JUSTICE KRISHNA S DIXIT AND THE HON'BLE MR JUSTICE G BASAVARAJA INCOME TAX APPEAL NO. 189 OF 2024 BETWEEN: 1. THE PR. COMMISSIONER OF INCOME TAX, 5TH FLOOR, BMTC BUILDING, 80 FEET ROAD, KORMANGALA, BENGALURU – 560095. 2. THE DEPUTY COMMISSIONER OF INCOME-TAX, CIRCLE-1(1)(1), 2ND FLOOR, BMTC BUILDING, 80 FEET ROAD, KORMANGALA, BENGALURU-560 095. …APPELLANTS (BY SRI. Y. V. RAVI RAJ, ADVOCATE) AND: M/S. ASIA POWER PROJECTS PVT. LTD, 4 LAKE SIDE RESIDENCY, NO.4, ANNASWAMY MUDALIAR ROAD, BENGALURU-560 042. PAN: AADCA 0485B REP. BY ITS MANAGING DIRECTOR. …RESPONDENT (BY MISS MANASA ANANTHAN, ADV. FOR SMT. TANMAYEE RAJKUMAR, ADVOCATES. THIS ITA IS FILED UNDER SEC.260-A OF INCOME TAX ACT 1961, ARISING OUT OF ORDER DATED 27-02-2024 PASSED ITA NO.1140/BANG/2023 FOR THE ASSESSMENT YEAR 2017-18 PRAYING TO FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED ABOVE AND ALLOW THE APPEAL AND SET ASIDE THE ORDERS PASSED BY THE INCOME-TAX Digitally signed by LAKSHMINARAYAN N Location: High Court of Karnataka - 2 - NC: 2025:KHC:6294-DB ITA No. 189 of 2024 APPELLATE TRIBUNAL, BENGALURU IN ITA NO.1140/BANG/2023 DATED 27.02.2024 FOR ASSESSMENT YEAR 2017-2018 ANNEXURE-A CONFIRMING THE ORDER OF THE APPELLATE COMMISSIONER AND CONFIRM THE ORDER PASSED BY THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-1(1)(1), BENGALURU AND ETC. THIS APPEAL, COMING ON FOR ADMISSION, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE KRISHNA S DIXIT and HON'BLE MR JUSTICE G BASAVARAJA ORAL JUDGMENT (PER: HON'BLE MR JUSTICE KRISHNA S DIXIT) Revenue has challenged the Order dated 27th February, 2024 passed in ITA No.1140/Bang/2023 for the Assessment Year 2017-2018. In the appeal memo, Revenue has framed the following substantial questions of law: \"1. Whether on the facts and in the circumstances of the case, the Tribunal was right in holding that assessee is entitled for set off of brought forward book loss in the computation of income under Section 115JB of the Act by relying on decision in the case of M/s. BAIL vide ITA No.622/Bang/2014 and AMLINE TEXTILE (P) LTD. reported in 27 SOT 152 when the said decision has not reached finality? 2. Whether on the facts and in the circumstances of the case, the Tribunal was right in holding that assessee is entitled for set - 3 - NC: 2025:KHC:6294-DB ITA No. 189 of 2024 off of brought forward book loss in the computation of income under Section 115JB of the Act when the claim is contrary to the provision of Section 115JB and Board Circular No.495 dated 22.09.1987 and ignoring the application of explanation (iii) to the said Section?\" 2. The subject matter of this Appeal is akin to the one in ITA No.329 of 2017 between THE PRINCIPAL COMMISSIONER OF INCOME TAX v. Bangalore INTERNATIONAL AIRPORT LIMITED, heard and disposed by the Co-ordinate Bench of this Court vide order dated 19th September, 2022 in favour of the Assessee. 3. Learned Counsel appearing for the Assessee notifies to the Court that the challenge to the said order in SLP (Civil) Diary No.30145 of 2023 has been rejected by the Apex Court vide order dated 14th August, 2023. The vehement submission of the learned Panel Counsel for the Revenue that the fact matrix of this case is bit in variance with the one in the cognate appeal, is difficult to agree with. - 4 - NC: 2025:KHC:6294-DB ITA No. 189 of 2024 In view of the above, the appeal is liable to be dismissed and accordingly it is, costs having been made easy. Sd/- (KRISHNA S DIXIT) JUDGE Sd/- (G BASAVARAJA) JUDGE lnn List No.: 1 Sl No.: 29 "