Ita/107/2013 Of M/S Mangalore Electricity Supply Company Ltd v. The Deputy Commissioner Of Income Tax

IN THE HIGH COURT OF KARNATAKA AT BENGALURUDATED THIS THE 7/ DAY OF JANUARY 2071PRESENT| THE HON’BLE MR. JUSTICE ALOK ARADHE AND| THE HON’‘’BLE MR. JUSTICE NATARAJ RANGASW A BETWEEN: LT.A. NCO.107 OF 2013 M/S. MANGALORE ELECTRICITY SUPPLY COMPANY LTD., REP. BY ITS FINANCIAL ADVISERSRI. K. JAYARAM ALVA|PARADIGM PLAZAA.B. SHETTY CIRCLE|PANDESHWAR, MANGALORE. ... APPELLAN| (BY SRI. A. SHANKAR, SR. COUNSEL FOR.SRI. M. LAVA, ADV.,) AND* THE DEPUTY COMMISSIONER OF INCOME-TAX.CIRCLE 2(1), II FLOOR|CENTRAL REVENUE BUILDING ANNEXE.ATTAVAR, MANGALORE. ~. RESPONDENT (BY SRI. K.V. ARAVIND, ADV.) THIS I.T.A. IS FILED UNDER SEC. J6O0-A OF INCOME TAXACT 1961, ARISING OUT OF ORDER DATED 31.10.2012 PASSEDIN ITA NO.1118/BANG/2009, FOR THE ASSESSMENT YEAR 2006-O7, PRAYING TO: | (i) FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW,STATED THEREIN. | (ii) ALLOW THE APPEAL AND SET ASIDE THE FINDINGS TO.THE EXTENT AGAINST THE APPELLANT IN THE ORDER PASSED BY. THE TRIBUNAL IN ITA NO.1118/BANG/2009 DATED 31.10.2012,IN THE INTEREST OF JUSTICE AND EQUITY.| THIS I.7T.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 assessee. The subject matter|of the appeal pertains to the Assessment year 2006-07.The appeal was admitted by a bench of this Court videorder dated 16.07.2013 on the following substantialquestions of law:| (i) Whether the Tribunal was Justified in law in confirming the disallowance of.Rs.54,84,85,143/- being deduction claimed.under section 80IA(4)(iv)(c) of the Act onthe facts and circumstances of the case? (11) Whether the Tribunal was Justified in law in denying deduction under section8OIA(4)(iv)(b) of the Act on the facts andcircumstances of the case? (iii) without prejudice, whether the. Tribunal was Justified in law in denying thededuction claimed by the appellant underSection S80IA(4)(iv)(b) of the Act afterholding that the appellant is entitled to claim.deduction from 1.4.7005 on network of a2new transmission or distribution [ine on thefacts and circumstances of the case?| (iv) Whether the Tribunal was Justified|in law in holding that the appellant is not.entitled for depreciation on the consumercontribution and the said assets are used forthe business and maintained by the assesseeon the facts and circumstances of the case?" 2.|Today, the appeal is admitted on thefollowing additional substantial question of law: (v) ‘Whether the provisions of Section|115JB of the Act is applicable to theappellantCOMPalhlfor.theimpugnedAssessment Year JZOQ6-O7 on the fact andcircumstances of the case? 3At the outset learned Senior counsel for the.assessee submitted that the appellant does not press. substantial question of law No.4. Therefore, it is notnecessary for us to deal with the same. 4For the reasons assigned by us in thejudgment passed today in _ I.T.A.No.204/201thesubstantial questions of law framed by a bench of thiscourt are answered in favour of the assessee andagainst the revenue. In the result, the order passed bythe tribunal dated 04.07.2012 insofar as it contains.findings against the assessee is hereby quashed. In the result, the appeal is disposed of. | Sd/-—JUDGE. Sd/-—JUDGE.