Ita/276/2019 Of M/S Padmini Products (P) Ltd v. The Deputy Commissioner Of Income Tax

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 27TH DAY OF AUGUST 2021 PRESENT THE HON’BLE MR. JUSTICE ALOK ARADHE AND THE HON’BLE MR. JUSTICE HEMANT CHANDANGOUDAR ITA NO. 276 OF 2019 BETWEEN: M/S PADMINI PRODUCTS (P) LTD., NO.157, K.KAMARAJ ROAD, BENGALURU-560042. (REPRESENTED BY ITS DIRECTOR, SRI.LOKESH N, AGED ABOUT 63 YEARS, S/O LATE NAGARAJ N. VEMULKAR) PAN:AADCP 1790 L. ... APPELLANT (BY SRI CHYTHANYA K.K, ADVOCATE) AND: THE DEPUTY COMMISSIONER OF INCOME TAX CIRCLE-5(1)(2), BMTC BUILDING, 5TH BLOCK, KORAMANGALA, BANGALORE-560095. ... RESPONDENT (BY SRI E I SANMATHI, ADVOCATE) THIS ITA IS FILED UNDER SECTION 260-A OF INCOME TAX ACT 1961, ARISING OUT OF ORDER DATED 29/11/2018 PASSED IN ITA NO.2255/BANG/2018, FOR THE ASSESSMENT YEAR 2015-2016 PRAYING TO: A) FORMULATE THE SUBSTANTIAL QUESTION OF LAW STATED ABOVE. B) ALLOW THE APPEAL AND SET-ASIDE THE IMPUGNED ORDER OF THE INCOME TAX APPELLATE TRIBUNAL, BENGALURU 'B' BENCH BEARING IN ITA NO. 2255/BANG/2018 DATED29/11/2018 FOR A.Y.2015-16 AS ENCLOSED IN ANNEXURE-A. THIS ITA COMING ON FOR ADMISSION, THIS DAY, ALOK ARADHE J., DELIVERED THE FOLLOWING: JUDGMENT Mr. Sharath, learned counsel for the assessee. Mr. E.I.Sanmathi, learned counsel for the revenue. 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 against the order dated 29.11.2018 passed by the Income Tax Appellate Tribunal. The subject matter of the appeal pertains to the Assessment year 2015-16. The appeal was admitted by a bench of this Court on the following substantial questions of law: "1. Whether, in the facts and circumstances of the case, the Tribunal was right in law in holding that the Appellant is eligible to claim depreciation only with reference to the written down value of transferred assets in the hands of predecessor firm and not with reference to actual cost incurred by it? 2. Whether, in the facts and circumstances of the case, the Tribunal was right in law in upholding the action of the Respondent in invoking 5th proviso to Section 32(1) of the IT Act in the assessment years subsequent to the assessment year in which the succession took place i.e., for the AY 2015-16? 3. Whether, in the facts and circumstances of the case, the Tribunal was right in law in invoking Explanation 3 to section 43(1)? 2. When the matter was taken up today, the learned counsel for the assessee submitted that the substantial questions of law involved in this appeal have already been answered in favour of the assessee itself by this Court vide judgment dated 5.10.2020 in ITA No.154/2014. 3. The aforesaid submission could not be disputed by the learned counsel for the revenue. 4. For the reasons assigned in the afore-mentioned judgment dated 5.10.2020 In ITA No.154/2014 in the case of the assesssee itself, the substantial questions of law framed in this appeal are answered in favour of the assessee. The order dated 29.11.2018 passed by the Income Tax Appellate Tribunal for the assessment year 2015-16 is hereby quashed.In the result, appeal is allowed. Sd/- JUDGE Sd/-JUDGE