Karnataka High Court
The Commissioner Of Income Tax vs The Rajajinagar Co-Op Bank Ltd on 20 July, 2011
Bench: N.Kumar, Ravi Malimath
EN '§I'H§ EIQH CQURT QF x%TA§§é. AT BAN §i);I1E':.a:<<§ Lhiia §..E:<3. 26?" {£21}? 0&5 2.213'. «' A' PE?;E3;§3E?}?€'.§iAA»V _ A' A THE HQFVFELE MR, §§:;s:;:'::fC §§:'_iw% f£:;z , THE §i§N*B1..E 3sZ'§.},3;. .1£§:s*:§zi:;E 'mm §§.&A::,',-::s.2:;é*m BETEVEEZN: H 1 '1i'E1e _{?0r:1:3;:;';3' (3:19:-:rAV {Si-".,._§ z'J:i::c{r:1e tax CRE3_1,aE£cii11g '=, "
Que-s;e'n::: Riiéici _ "
£3an.gé:fi:m've V
- 2 " V' "E'ffE"::§:~ f*:{i{ii%.i<>'s:s§§"{;f0n1m£s;&si(}::é3r° (sf _ §§1C'C}m':% "-I'23;X . T. " - §§é:::%:;é,e 36:
" - if E€"'_'§:".%:§'iE;{:'§'ii'1§ @z}.§:=€::":V_<-:;' E¥?;<}a<:§ ' " ES-éizéggiisre . ' ,Ag3p6§§:1n§,s {E333 55:'; K 'E? A.£"°%.7§}'1.€;§9 ;%:%*::"<3{t:s;:E.:::
{<33 E§:'§ EVE" 'J $€?.':§Z'?_.2-F£{'.§}E'%§.£i' P1.<iv{><::.::i.e§ EEN E} :
"E"'%1<;% §5{9;j:-:ji:1ag21.2' {i<:=--<);3<:%:'21§iv€ §.%zam§<. §.;E"j.{i.= i¥{aj::}i112":,g:e1:: E-3r2:r:<:%"z E'-3"<§."?4 "E; 3*" E:3E<":z:tk 'E{a1ja}'3:'na2g§a.r .
E33.:1g§a.§<:re ' . _»§'i<.';ea';){f{s31s:§'a;": E; A {By STE 8 E33;rE,.h2:S2?2_r'aE,}.iE'5;: bkfiziiiai ZF{::_«;§,. _ 1?figE?Aifled [email protected]§L?i;m1,:98: &fishg§0ut0f G1"C§f;':F dated 19~G?~..'Z';D9E3.p21s3:s€;§i-----i.':1"vE7§';%..N<>e2G8,'.§3ag::g;'2G03fi fer ihii 2'-'asses-;5;n1e'nt. 'Ye2zr' _2GQ1~C22,_;§m?:;3:§g. 'E0 13} f0m'1uiat'e the s'ub:~3'LaI11:.ia1 q_s_1e3.s£,1Z.c:r1s 0§°"i.«;:w- s'L:=,'if'€%cIv 4;,h_:::}e:n;». ii} ailow the appfiai and set aside ihe order pais3:sed'_ m-;»:2"E'«"f_;:5':=.'__§7V--~ E§2:11gai:}re in ETA 960,208/£%a:1g§f2G{)Z3 d8.§lédV"£iQ~Q?.{2OG§ ..{;<$%1i'i':'n1i:3g Ehfi {:s'rc:ier passmci by E;.hr;" 3{§§3..3iEait: Co:::§;11ii':s§3'i0f1£:::f_@116 <:.G'ni'i1'm {ha Order passed by _£hx%'~_i}Ld1Eg3;t.*;_<3:';.a_i _C':2;:'113.:4§s~s$i<>:3s:° Qf In<:<}m€ "Fax, Rang€:~ 18, .E%;1ngzflif»m._:-
"Ef}f§fi.:<§ 4' _::*g».,,_" -.}£§{:r3駧';:::g_§}"'« am for Elaszwingg ihis {fay RE. KEHHARL .:ieE%i.5e:*{%d' .f.7<>§E<>z¥:ér:g:
"" '' avaemmxr _V '_'i'hi€:j E%é'i:ri%:_m1{--% §";a..s~.s §}E"f;?f€§"E'€€§ %ijh.:is=.; 2-1353621': a_g,§21iz';$E: ihe <):"§€1* .gfiihs-$+2%dV "?:}f'_~%.E1€;."E;;'iE31:::':aE.. vs:§';.§€:h :'€;§z::cé.e{i iihe .21§3p<-35:2 §§i€{i '{3}! {E26 E{€:a5é:z":::-%: zfiiizgézag if} §§'1i€r§'f€:;"€§ '£E.»'§§..h {he ariiéiz' pas5e{i bf; ms: *ii'";<§r E%<:.E. zmii E:'}°z£:'§":%.£1:>:°<::. in his v'i&.*=a:. §.'§2<: <%:<:§§E.;1a::1a-aii<m {)ffé*:'E'é'.!:§ E';-'EiS 210%; ;1 :*a=%as-:<3z"2a:.'£:sEe:: <§:z:?1::* 21:35:} E.§E€3E7€f{)i"€? 3-1:: g>1'<3e;*:e:3<§e<%, ti) -;;:;€};;_:z:H';y "wider Ss~:~;(:"zi<m 272$ {Trf £11253. ;%{:1., ii': 2?: 5931.211; {:35 <::'CE€:r ziztiiiitai 2£{%,O8x2€}Q2. V 5;" A§_'§§,-:;:'i€V€€} by 2f.h<:* §?l=Z1ETi€', , §,1i;<: .é2:%:s;7e_:%sss;%»:€* .;>:M'«:3§7't7_£*:*é§E ézn 2Lppe'3a}fi 'file C-c::n:mis*5i<me:' sf? §_:{:{:<>m'e:> "E";».2:>; {A;3p.:2.a1s} " ha::??)d" vih.3fl;L the aasesssee Was; ig_3;:10?;2:::{. of 't.i1'é%'L»1V<€g21§ p{)s§E?i_i_<i:":T :V%1aa.{}'71"E)S has {.0 be: c§€du<:t.eé, which 21<:aV:'é'::?:£:;z3§«"isz} 'iii-':i; §§or_1$t'§£'.L1E',é;§ ii reas-s'<;nab§.e cause for fai§%;:1g ta d€dL1(':i.'K-§.vEL){ E1§iS{)?;1.}§°;C:::": :'éiZii§i'1 :,herefore he sat aside éfffhé m°dé1vL'3_-:*x:iyE::3g ;>§3i'12;Ei§.a ' 5» =E~§ggg§:'§}:§%*é£i._'i33,r__ é;'Ea.é:..-~s2i:1:€, tile E~"{€:ve1:taue p;'<2fe:z°'x'é:d an i.».1;}§}e»':;,"»:_§_:<; t:h€::=Tf':bu§;21};*._v«:§3;i<:i": §é3.§;S:'s€} (321316? in be :°€.§'€=<:i:e::i azffirmizzg V' 'v_€'.E'1;E._§i§)§jL€:}§;i§.'i€ {E5}:'i:'s":':;E&ési<:22:';.ez°, ;%gg:°'i:%xFe§§ by {ha :=;:ar1'1:E, $;h{'f _ §?;€"§/'€?i"iALiéi. is m .;:§:';§::e21§' 6:; ' -'-?§ft:§€:~é §a?a3;:*::<%{§ Ca:22,:::s's9%E §'%>§* 'i"'§"§<% §{E?i-*'%i':§'E11{.' 22s%;s§;1:fii.::g;j ihé? é2':':§m.§§§":V§{*:.«;% ézraiirfi" s:".{}1'£'§.€§"i{§E€-E 'Zh:':%. i§;:1e;}:°22z':<;:€: <35 Eztzw {i£§§"i.":.'z{}i E36: 21:} .~ 5;
ex::u.ss;s:% 222.25% ii" w<;>':,:E(;E zzm <:'<3:'2s:«;i.iz.:.:§.er 2:: ma-:5s{>s':2::E::§st (',é1£.§E%':€. :~2.:«;=;m;;§;
'}fE1<:%r<3i'<3:"€ E36 5:-:~2,:bm'i'E.:e; t.§";z1i'. me <:sr:§{%2" g'32:1:aes€;*<i by é.E':{;%~..5§;ss§é3~ g"m£,hG§"i'E.3=* i'1'1::p:3s;;i:1g§ p£;%11:<'3§%',}r V§.:"2':E;':} §c'3g}§a§ 21'mi vaéiii a.%"é_e_:§ iii'éfigiigighéi-'.3T;{:';Ti, {E} E12298 $.36:-::":: i:':%?crf:=;;'+@<i mm by that a.1;::§g.:€:§.§.22.'€'e:%.':3; '- "2'. 9632:" :::::»nE.:*a€ me E=::é2?s."s*'m%L:§ {?§3.:.;':':j:%r::'iTT fi{3_1*'=E;h€:..'zgss§:;;;gs3e $u§3:"nii.i::3£E 1.%::.a'E. $sLzb--<tE2'ms3e V§f.E>'},_ <3? S'ct{:i,£:z.>:: 'L§<é§.--»-":.£:§§ .€?}§1L§)E;;€§i¥Ei.}':§'.' pr€}v'§d<-:3 thaaé. {E16 p:*<:»vis;i01:1s of ::§€.2f%_3V--'s;;<:::.E:§:)i1'-(EVETU? Sé{:i'.§:311 194 A shall not appiy is 3:1:.<_>;E§'~ .. i'I1<F§z)m;¢ "'mj*:,'<z,:ini'1;--<-36% er paiici by 21 (:0- <>per;1£,iw: sae:;~£:£::=;tyV is 21 :f:f;c%'1.;.1'E3=:f '£"}:c:r:*<:<3i'--.}_mf_ 11.3 gray €3"i.he3' Co~ @p€;'a1¥;13jv{;é 5:'-«e:_>{:i<m:i,§A,f. _fE'i1;e a$L~'§~€§s{:@*:i.i{i 30*; <t:3.:1"e§f:;EEy ;3<>i;11c:e the 5-said. p;;°m*i:'~31;<}i': "s.:-7i-'_§"'1§{?§§.'~,_ {:=:;§.:';:;¥é:*;--"._§TT*:éi'« "'i}:<: b{;énc3:fiE. <:}::ZjJ in :r€$p£3<:i. of ::'1:;%':r":.':;;<:r:; amé, i.izs:§' &%.§;1?T£'1€ 'b<mefit'. was {:03 @§<;":,e:3<ic=d in .z1<:»n~ ' . §f§E€i3'?;§€;"5.»§"'i'E? zemfii "ii §s *g§f:'§_'ss' §:»€3:':z1fE:;%€, mis"%'.3.Z<.e3 'W'§}i€§?§3 r€:ss;L1§.i,e€: in mm- ' ;%::é1:2;;'§1'i{3fz '_::a.§ ""?E'}S 3:32 z'€$p<;><::é. {>5 :ém<:%re.:-51%, pa_},»='a?3E:% is ::{>1":.~ <ié§13:":3s:§ 'by E11119 ETé.f4SE.'tT«{'..Ej%S=S€'{? %.><i§::2g; 22 %><:.s:';22%'"i€§ai: <.é':":§;: {%<:;:"::§t.§E.z2%,:é$ i":3e:"r'£?3:::3'S.-----{}§f§ 'Ef:s:i2'":§;; §:<::§:2E.z:<:E <mi:., 1§':'m3£:<i§;1§'<3i'j; fizz: Efiazzis: mas Emit} i.;}":'<-i E213; wiih i.:7_ée:1"€55§'. and 'i;Z:":<=::'efm':;': éirw ssaié §:xp§21:12:i','i(>:1 ('E 'z"a%;':s--.%.:):':a':3E-::% <.*;»§1.::=;2é%. 51%; §'§<?1€§ by 'i}"1<? {vac} 2:ui:i'?::;}3,"EE,i€:~i-; avzziia E§:er€%§':>§"t?: :30 c2"25;{:': fag." in€er§1:>.':"{::§':<:&% i:-§ i';'1:-.'v:§€* <.>ué'., I _ V 8' §§,;§n<>:"21§::{%® G'? Ezzsw <:;s.1'2.:'"1<)E be 31:': é3x(?z.1$§%'."' $18 E*:':{??i{'E§1'}€f <3? En.<::{>m<;*; '§'z2x 2-'-'a<:%,. Sc%C"£.im'; éfififbb i2'31§3z;}sit§{3:1 Gf ps=3n21§%:j; €01" :f20:1~<mm§§£%.a2.1'1§7:§? <:2§ i..hé §:éa.%ti' E*'Ee:}'a2re:xr<:r, 8e:~3:{:€:§0:": 2'?3«E:3 Whizjifz' E%4§'.23.IL"§'.§L=';V""».i-:'ji"1':E'"§ 110;': zlmkes it {.'.§.f3EU"' '*é':E":a!;: no ;}er1aE'E§,r E33 i:11Vpos'§»i'b'f;é <2}; §ei's;<:sr;i an" {Ext-3 £iSS€SS€*.€3 21.5% the' i'",'r."zviV§ :A.:':;'i§:=. :"€~.fE:'md {<3 in 'ihfi sagici ;__:>:'o'v§s§<21:1s if E7156: ._p;'*r.j?\%e.%s {.«i°;.g?£1;'--'£}_i1¢':¥<;% \X--"=';1'i-3 r<39;s0nabi€: C£i'LES€,* ifor :.1':_e s:«§:;2;§éE_a f;1.i:i:227¢L"~« fi '.'r":eref02"&*: {he penalty pzzyakyle under Sec§.:::::} 2?' "EC :5! E:g€:§{""Véii% L<'3~:::__2:1'§.iéL: if :'.'m': ass$e:~;:s<§e is; able in S§E{Zfi.-'E ?€E1S{§i1£%b§EE {}axe,,;sé:r" ikfsa" *:1{>n--<%:>:1*1p§é2::1are 0%' such }}E'UV'I'.Si{>'E'15 no " "§3§:i:;1§%;;§.?~'.'Es; §f}§"E._'§}£}fi~'52?a§Z)§(:'.;mfiE'1€'§€331' S€'3€3"Li€}'i"; 2;?3§%, " Ez:._ "_'_§;:{:i:, th:-=. Ekgjm: Cm2r'i:: in mg': £73.52 cf sizgfigzsséiéyigiag SF magma rm vs, 3;; LILLY $2. safiswajw {3'E§BLi§§g'§§ iaffig 5% Qflfiw :"éé;'§m'E;{é{,§ in {.;2§§§} 332 ETR $525 _s§.:*:z:.E'E'r1g,§ wéiéz i.§'E€':f%$i';"? g3;"<:»:r§:%§<)t':5%; h.é;:Ea:;§ f;'§":;':'i' :' ziczx, 'f'§":g> P;:sr(2£e;'1.§ cg? z:?<:}::r;,<'s§: 3'3 am Z52:-.= _f,'}£%!':=€-30%'? 5.5} §I}3"{}U¢:'? S:.5{f§'2 good. amff s:z.;[}Z.<:{e:':£ re.>as.4;e:>r':.. Fu.rz'?':s3r 53153;; 3152.2;-{E 3'E(;'{(i. in Efmi. gncasse {fE;'?(i§.£.{?f.{}I'-4af§S€?f5S86' was; s..m::i«:>r' ca g;e:'2:.z.€r'ae= {.:h:Ei b{1T;1":"§§ fZ'{»§€;' I*)€Ei£:j;"' Ehaf. I ?;,£F(L'f§ n.e::}: :.;.:'2i(J§..g5z'b_gzrTzg; _-{;¥§f}'i'tT3:;$:é:.'E<)}€'rf.{§ _ €§ed.:.:<':£. fax a!' S<'):£f{Té3'}'§'"U??'2 2'}';é;_§'z.()z7;z§r;%« V»$:j£E1"E'::"r-r€>'3B.'.Z'.é;'F"'f'.(.}V€§vg"{'2':g: ..E2§_,,gW {he j§:)r€:fg:'2 c::)mg3any /'IE'-*2'j{} czn£1}__ {fL::fis?e€;'zée_;_:j:.E};v§ '~z.g,;e:"."
are Q? {he uf£3z.:s rzhaz. §>I2:_w?:E'£;'g'2"7.e'-.5 pssnaifigg was; §€U£'€»:bZz'-3 §::i:fi!",a'§::f,"E"-, s,2.?':..C: ' I as : {W2 respamdrsnf. fir: e5:'c'i_?fz5"8z:z;9e_'$ €§.f§£?'%i€§fg€f1 5:3? iflrdezi qr' sfmw2',rzg reas{;:1€§b:é 5::-z:.?;;<;;3 _f§§;:2";.;'j1:;f.L{Igr{3 3:0 cEc»35£.uci Em: all s<3u{€rcé.__"
13.. "§,:,=.j ?",_h.e: 3f:1s¥";1f:":i: "case, {he a:+;s€:sser:% is 3.. C0~epe:ra'{ive Efiazflxx x..,f{,'i?ams-;a<:* 5" .é>'§»7_S'::b¥ia;§3§'i"§{>§z {3} of St'.Cé.§£}I1 194$ €tX§)X°'€SS}},' ésxexziptss éghif Efiaxfia. §§*cs;?:;.-- :§:'é:?:i%_:_e:éé':i'::_s_g the 'mix at s<:u;°<%<:t an i:1f;er'€:51. p;1y;gb§§v.}.by §.:"}V{LT.._¥3V£?{§E§§ E0 i§.;<;~; me.mE":»<;*>z"sss and <)*;.E"2€r Cz}~a3;:na:'a'%'.iv€ "S£>a§%;eé.i€§=:5::{', 'g-'£3: §%§3E.§.ii=I;',d ':33; the gz$,es:a;a%s;§,"~;€:<1 i;.§::=.3,-' {ELM gmii. pmperigg {Vf{};§3$i.'§'%§%if'{§hES£§"f}1f:é§:'€§Si{}E'}, E35; Inis:+<':(>:':ss1.:*'u.i:1g; this; p:*m..-"isiaazz E,:'E{'§}«' a£':;e <}V {3.iC§_ z:{§.E.ATV¥:i.e3€1u<::. ':;'3;§~; §':"<:>::': zim :¥z':*;.e%:*es;€: g39zy'zé:?3Et% :0 :2{}:*:~ me,:":':§3€,;ré--s.. V 'E"§':22i ?_I§'Zi"? %9<3:'.:a.iE{§::: m§;~:-:.éaE<.e wézéitiz éhsrrfr $222322:
Z-1.,/' <:c3£i;;1mi1;§:e{§A '§'ii:si:' E3<fs:'12:§i<§;~?§:-2 is'; de.m.{.>§':§s'i;:"aE:€r<i E0 i;jE:<-: €ri~f€<*.'%.': *i':'1.a£; <:i:1{':<3: in 2-2. 5-:~L::*x.»'€éy {E16 ssziam :'i:§.:~.;§..21Eae:% xixzzs; :':{4:%..§:':sfi-7'. 2-md p€§Es_'1 %:»:éé"-g) iii... faz3m:z:>,dia":i.e§§; E.§3.£-2:; E1z1va=% paié €h.:~:3 £.z-ax: wiih i1'1{1€E"€':.fé§i;L:-~ 'E'E::%1~E§E'e:"£;--;--.21: "i.§'1{?: E.i.gh:'. (:2? E:§':§s:~:» z;z:'1<:iis3pL1%&{% fa-'z<',';'i_4s_+:......{>._{ E.§1§'§§.V"{i'gé;L,,}fff$, iiérffiéig .,_;,;gé A§}§3€§}:;iE.€ C{}}"£"}IT:§S§:§i{}E'1€',E' zmd E..§i;& T"':ii'::::.:.;'}V1a§ Ei€i:i{i"~€';§2;;§' Vifiat' éizztze C<:«:'1$i':i%u';.e:%; .21 E'€éi5:=3{3-'[1EibE(;' {:21iJ:;E:--~._a1m:1"when fi7}€'~.:$£1v§}'}VC :';--:>;¥?;"
showzz in iézésza ihi? £3;,f.%EEs€3SS3€?fi_Ef3:éf3_E§2Z.i'i£$§<;'f€i '-;,.h_:3 :*c:q%.:ir€:z§e:%:3§,. <3?
Se£:i,iz>:a 2'?'3--B, in 11'i':i€.'.E.";._;:A%i€A?£.1.iéIg ._sh21iE§ bf: ixnpoaabie.
"fE1m"€§0r':3 %';.}1§ c>rr§rc; §3a1S€s::.-:§ §)y Vfifs7;§:__"§";;§§§{;:$é;.E1211153 Ehs: apggeiiatfi COE1'1.I'£}.§.SS§(}I.1§f:E:..:v €i'£:':§ I10: suffer {mm any Eegai .i:fi%tts1'E7&:;"€::1<:e. Ac<:0rCi;?..11g1y Ehe ss11.b&;E2z.:'1%i'i:1i§4'q1:eS%£.{3:;§f§;E}fé§.r:1.€:i is 211"::a«:w'<;%:"::%{?£ E1": §':»3.x.rg>u;' sf Ehéfi 2'a£~35%€i:f5;*'y'{:'é?;_':.£i.¥Z'§ ¢1%é:_§;§.Ef§1.'§5§ i::*}€'%é€3'«'"{;?%§1E.Ea';?= Appeai &ismi§$ed. §§& §§§QE §<:?':;"~ T%*" §Q§%§