Ita/1043/2017 Of Pr. Commissioner Of Income Tax-Vi v. M/S. Sterling Developers India Pvt. Ltd

IN THE HIGH COURT OF KARNATAKA AT BENGALURUDATED THIS THE 25TH DAY OF MAY 27071 PRESENT| THE HON’BLE MR. JUSTICE ALOK ARADHE AND| THE HON’BLE MR.JUSTICE HEMANT CHANDANGOUDAR. LT.A. NO.1043 OF 2017 BEITWEEN 1. PR. COMMISSIONER OF INCOME TAX-V] CENTRAL REVENUE BUILDINGS QUEENS ROAD, BANGALORE-560001. 2. ASSISTANT COMMISSIONER OF INCOME TAX. CIRCLE-6(1)(2), 2ND FLOOR BMTC BUILDING, 380 FEET ROAD KORAMANGALA, BANGALORE. _.. APPELLANTS (BY SRI. E.I1. SANMATHI, ADV.) AND M/S. STERLING DEVELOPERS INDIA PVT. LTD.NO.8, PRESTIGE NUBULA, LEVEL-5—CUBBON ROAD, OPP. INCOME TAX OFFICE.BANGALORE-560001PAN: AACCSO 304G. .., RESPONDENT| (BY SRI. S. ANNAMALAT, ADV.,). THIS I.T.A. IS. FILED UNDER SECTION 260-A OFI.T.ACT, 1961 ARISING OUT OF ORDER DATED 28.07.2017PASSED IN ITA NO.28/BANG/2016, FOR THE ASSESSMENTYEAR 2011-12, PRAYING TO: I. DECIDE THE FOREGOING QUESTION OF LAW|AND/OR SUCH OTHER QUESTIONS OF LAW AS MAY BEFORMULATED BY THE HON’ BLE COURT AS DEEMED FIT. IT.SETASIDE|THE|APPELLATEORDER.DATED28.07.7017 PASSED BY THE INCOME TAX APPELLATETRIBUNAL‘BoBENCH, BENGALURU, IN|APPEAL|PROCEEDINGS NO.ITA NO.28/BANG/2016 FOR ASSESSMENTYEAR 2011-12, AS SOUGHT FOR IN THIS APPEAL; AND TOGRANT SUCH OTHER RELIEF AS DEEMED FIT, IN THEINTEREST OF JUSTICE. THIS I.T.A. COMING ON FOR HEARING, THIS DAY,|ALOK ARADHE J.,DELIVERED THE FOLLOWING: JUDGMENT Mr.E.I.Sanmatni, learned counsel for the revenue. Mr.S.Annamalai, learned counsel for the assessee. This appeal under Section 260-A of the Income TaxAct, 1961 (hereinafter referred to as ‘the Act’, for short) has|been filed by the revenue against the order dated|28.07.2017 passed by the Income Tax Appellate Tribunal. The subject matter of the appeal pertains to Assessment Year2011-12. The appeal was admitted by a Bench of this Courtvide order dated 25.02.2019 on the following substantialquestion of law: “Whether,inthe factsand|Inthecircumstances of the case, the Tribunal Isjustified in law in deleting the disallowancesmade under section 14A read witn Rule 8D(2)(il)and 8D(2)(ili) of the Act without appreciating the contentsOf|CircularNo. 5/2014dated11.02.7014,Which)empnasiZedthatonlyexpenditure allowable is relatable to earning ofincome and therefore, the expenses which arerelatable to earning of exempt income have tobe considered for disallowance, irrespective ofthe fact whether such [Income has been earnedduring the financial year or not?"| 2. When the matter was taken up today, learnedcounsel for the assessee submitted that the aforesaidsubstantial question of law has already been answered by aBench of this Court against the revenue vide judgment dated04.02.2021 passed in ITA No.685/2015. The aforesaid| submission could not be disputed by the learned counsel forthe revenue. 3. For the reasons assigned in the judgment dated04.02.2021 passed in ITA No.685/2015, the substantialquestion of law is answered against the revenue. In the result, the appeal fails and is hereby dismissed. Sd/-JUDGE Sd/-)JUDGE