By Shri. Aravind v. Chavan, Advocate

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 18 DAY OF JULY, 2023 PRESENT THE HON'BLE MR. JUSTICE P.S.DINESH KUMAR AND THE HON'BLE MR. JUSTICE T.G. SHIVASHANKARE GOWDA INCOME TAX APPEAL NO. 25 OF 2021 BETWEEN : M/S. CENTURY REAL ESTATE HOLDINGS PVT. LTD., NO.10/1, GROUND FLOOR LAKSHMINARAYANA COMPLEX PLACE ROAD BENGALURU-560 052 PAN: AADCC 0651M …RESPONDENT (BY SHRI. ARAVIND V. CHAVAN, ADVOCATE) . . . . THIS ITA IS FILED UNDER SECTION 260-A OF INCOME TAX 1961, ARISING OUT OF ORDER DATED 24.06.2020 PASSED IN ITA NO.284/BANG/2020 FOR THE ASSESSMENT YEAR 2014-2015 PRAYING TO FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED THEREIN AND ALLOW THE APPEAL AND SET ASIDE THE ORDERS PASSED BY THE INCOME TAX APPELLATE TRIBUNAL, BENGALURU IN ITA NO.284/BANG/2020 DATED 24.06.2020 FOR ASSESSMENT YEAR 2014-2015 ANNEXUR-C AND CONFIRM THE ORDER OF THE APPELLATE COMMISSIONER CONFIRMING THE ORDER PASSED BY THE ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-2(2) BENGALURU AND ETC. THIS ITA, COMING ON FOR FINAL HEARING, THIS DAY, P.S.DINESH KUMAR, J., DELIVERED THE FOLLOWING: JUDGMENT This appeal directed against the order dated 24.06.2020 in ITA No.284/Bang/2020 passed by the ITAT[1], has been admitted to consider the following questions of law: 1.Whether on the facts and in the circumstances of the case, the Tribunal is right in law directing the assessing authority to restrict 14A disallowance to the amount of exempt income without analyzing factual matrix of the case and when conditions set out in said provisions and Rules framed thereunder are fully satisfied in case of assessee"? Tribunal is right in law directing the assessing authority to restrict 14A disallowance to the amount of exempt income without analyzing factual matrix of the case and when conditions set out in said provisions and Rules framed thereunder are fully satisfied in case of assessee"? 2.Whether on the facts and in the circumstances of the case, the Tribunal's order can be said as perverse in nature in not considering the findings and materials brought on record by assessing authority in making disallowance under section 14A of the Act"? Tribunal's order can be said as perverse in nature in not considering the findings and materials brought on record by assessing authority in making disallowance under section 14A of the Act"? 3.Whether on the facts and in the circumstances of the case, the Tribunal is justified in not giving a finding of fact as to whether the source of exempt income were investments or stock in trade and is right in law in holding that the principle of capping Tribunal is justified in not giving a finding of fact as to whether the source of exempt income were investments or stock in trade and is right in law in holding that the principle of capping 1 Income Tax Appellate Tribunal the disallowance to exempt income was applicable to all cases of disallowances made under section 14A of the Act? 2. Heard Shri. M. Dilip, learned Standing Counsel for the Revenue and Shri. Aravind V. Chavan, learned Advocate for the respondent. 3. At the outset, Shri. Aravind Chavan submits that all three questions raised in this appeal are covered by the decision of this Court in I.T.A. No.133/205 decided on 15.02.2021. The same is not disputed by Shri. Dilip, for the Revenue. 4. In view of the above submission, appeal is dismissed. The questions of law are answered in favour of the assessee and against the Revenue. No costs. Sd/- JUDGE Sd/- JUDGE