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Karnataka High Court

Commissioner Of Income Tax-Iii, vs M/S. Onmobile Global Ltd on 18 January, 2021

Bench: Alok Aradhe, Nataraj Rangaswamy

                                 1



  IN THE HIGH COURT OF KARNATAKA AT BENGALURU

       DATED THIS THE 18TH DAY OF JANUARY 2021

                          PRESENT

        THE HON'BLE MR. JUSTICE ALOK ARADHE

                             AND

  THE HON'BLE MR. JUSTICE NATARAJ RANGASWAMY

                   I.T.A. NO.338 OF 2014
BETWEEN:

COMMISSIONER OF INCOME TAX-III
C.R. BUILDINGS, QUEENS ROAD
BANGALORE-560001.
                                             ... APPELLANT
(BY SRI. E.I. SANMATHI, ADV.,)

AND:

M/S. ONMOBILE GLOBAL LTD.,
TOWER 1 94/1C, 94/2
VEERSANDRA VILLAGE
ATTIBELE HOBLI ANEKAL TALUK
ELECTRONIC CITY PHASE-I
BANGALORE.
                                           ... RESPONDENT
(BY SRI. K.R. VASUDEVAN, ADV.)
                             ---
      THIS I.T.A. IS FILED UNDER SEC. 260-A OF INCOME TAX
ACT 1961, ARISING OUT OF ORDER DATED 14.03.2014 PASSED
IN ITA NO.814/BANG/2013 FOR THE ASSESSMENT YEAR 2008-09,
PRAYING TO:
      (i) 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.
      (ii) SET ASIDE THE COMMON APPELLATE ORDER DATED 14-
03-2014 PASSED BY THE ITAT, 'A' BENCH, BANGALORE IN APPEAL
                                    2



PROCEEDINGS NO ITA NO.814/BANG/2013 FOR ASSESSMENT
YEAR 2008-09.

     THIS I.T.A. COMING ON FOR HEARING,                    THIS      DAY,
ALOK ARADHE J., DELIVERED THE FOLLOWING:


                             JUDGMENT

This appeal under Section 260A of the Income Tax Act, 1961 (hereinafter referred to as the Act for short) has been preferred by the revenue. The subject matter of the appeal pertains to the Assessment year 2008-09. The appeal was admitted by a bench of this Court vide order dated 05.01.2015 on the following substantial questions of law:

"Whether on the facts and circumstances of the case, the Tribunal is right in law in holding that the assessee is entitled for computing the Fringe Benefit at concessional rate of 5% and not at 20% even though the assessee has not satisfied the ingredients of section 115WC(2)(d) of the Act?".

2. For the reasons assigned by us in ITA No.340/2014 passed today, the impugned order dated 3 14.03.2014 is hereby quashed and the Tribunal is directed to decide the claim of the assessee with regard to fringe benefit at the concessional rate afresh in accordance with law.

Accordingly, the appeal is disposed of.

Sd/-

JUDGE Sd/-

JUDGE RV