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Karnataka High Court

The Pr Commissioner Of Income Tax, ... vs Messers Vsl Mining Company Pvt Ltd on 10 January, 2023

Author: P.S.Dinesh Kumar

Bench: P.S.Dinesh Kumar

                                             -1-
                                                          ITA No. 36 of 2020




                 IN THE HIGH COURT OF KARNATAKA AT BENGALURU

                      DATED THIS THE 10TH DAY OF JANUARY, 2023

                                          PRESENT
                      THE HON'BLE MR JUSTICE P.S.DINESH KUMAR
                                             AND
                        THE HON'BLE MR JUSTICE G BASAVARAJA
                          INCOME TAX APPEAL NO. 36 OF 2020
                 BETWEEN:

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

                 2.   THE DEPUTY COMMISSIONER OF INCOME TAX
                      CENTRAL CIRCLE-2 (3), PRESENT ADDRESS
                      DCIT, CIRCLE-2 (1) (2),
                      2ND FLOOR, BMTC BUILDING,
                      80 FEET ROAD, KORMANGALA,
                      BENGALURU-560 095

                                                                  ...APPELLANTS

                 (BY SRI. ARAVIND K V.,ADVOCATE)

                 AND:

Digitally signed 1.   MESSERS VSL MINING COMPANY PVT. LTD.,
by MADHURI S          HOUSE OF LAD, PALACE ROAD,
Location: High        SANDUR, KARNATAKA -583 119.
Court of
Karnataka
                                                                  ...RESPONDENT

                 (BY SRI. A SHANKAR, SENIOR COUNSEL FOR
                    SRI LAVA M.,ADVOCATE)
                                         -2-
                                                            ITA No. 36 of 2020




     THIS ITA UNDER SEC.260-A OF INCOME TAX ACT 1961,
ARISING        OUT       OF             ORDER         DATED          28/06/2019
PASSED IN ITA NO. 1854/BANG/2013, FOR THE ASSESSMENT YEAR
2008-2009,    PRAYING     TO       1)    FORMULATE          THE    SUBSTANTIAL
QUESTIONS OF LAW STATED ABOVE. 2. ALLOW THE APPEAL AND
SET ASIDE THE ORDERS PASSED BY THE INCOME TAX APPELLATE
TRIBUNAL,    BENGALURU        IN    ITA       NO.    1854/BANG/2013         DATED
28/06/2019 FOR ASSESSMENT YEAR 2008-2009 ANNEXURE-D AND
CONFIRM      THE   ORDER       OF       THE     APPELLATE         COMMISSIONER
CONFIRMING THE ORDER PASSED BY THE DEPUTY COMMISSIONER
OF INCOME TAX, CIRCLE-2(1)(2), BENGALURU AND ETC.,

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


                              JUDGMENT

This appeal by the Revenue, challenging the order dated 28.06.2019 in ITA No.1854/Bang/2013 passed by Income Tax Appellate Tribunal, Bengaluru has been admitted to consider following questions of law:

"1. Whether on the facts and circumstances of the case, it is submitted that the tribunal erred in holding that assessee-company is entitled for deduction under section 10B of the Act without appreciating that the assessee-
-3- ITA No. 36 of 2020
company has not exported Article to satisfy the conditions set out in section 10B of the Act?
2. Whether on the facts and in the circumstances of the case, the Tribunal is right in law in holding that the assessing authority cannot take cognizance of the seized material in the proceedings under section 143(3) of the Act without invoking provisions of section 153C of the Act by ignoring that there is no bar section 143(3) nor under section 153C or under any other provisions of the Act to take cognizance of seized material in regular assessment?"

2. At the outset Shri.A.Shankar, learned Senior Advocate for the assessee submitted that question No.1 has been answered against Revenue in "Tata Elxsi Ltd., Vs. ACIT".1 Shri. K.V. Aravind, learned Senior Standing Counsel for the Revenue does not dispute the same. Shri.Aravind also submitted that question No.2 is the subject matter in other appeals and the same may be kept open.

1 (2015) 127 DRT 327 (Kar) -4- ITA No. 36 of 2020

3. The question No.1 is answered in favour of the assessee and against the Revenue. Question No.2 is kept open.

4. Hence, the following:

ORDER
i) Appeal is allowed in part.
ii) Order dated 28.06.2019 in ITA No.1854/Bang/2013 passed by Income Tax Appellate Tribunal, Bengaluru is set aside so far as it relates to question No.1.
iii) Question No.2 is kept open.

No costs.

Sd/-

JUDGE Sd/-

JUDGE BH