Ita/302/2014 Of The Commissioner Of Income Tax v. M/S. Bagmane Developers Pvt. Ltd

IN THE HIGH COURT OF KARNATAKA AT.BENGALURU DATED THIS THE 20 DAY OF MARCH 2015 PRESENT THE HON’BLE MR.JUSTICE VINEET SARAN| AND THE HON’BLE MRS.JUSTICE S SUJATHA ITA NO.3O2 OF 2014 BBRHITW 1.THE COMMISSIONER OF INCOME TAXC R BUILDINGQUEENS ROADBANGALOREC R BUILDINGQUEENS ROADBANGALORE 2 |THE DBPUTY COMMISSONEBR OF [INCOME -TACIRCLE-11(2)CIRCLE-11(2) RASHTROTHANA BHAVANNRUPATHUNGA ROADBANGALORENRUPATHUNGA ROADBANGALORE ... APPELLANTS (BY SRI. K.V.ARAVIND, ADV., ) ANI M/S. BAGMANE DEVELOPERS PVT. LTDLAKEVIEW BUILDING NO.66/ 1-4A-BLOCK, 8TH FLOORBAGMENE TECH PARKCV RAMAN NAGARBANGALORE- 560093| .. RESPONDENT THIS [TA IS FILED UNDER SEC.2600-A OF INCOME.TAXACT1961,ARISINGOUTOFORDERDATED:07 /02/2014PASSED.IN|ITANO.1918/BANG/2013, FOR THE ASSESSMENT YEAR92010-2011 PRAYING TO:I. FORMULATE THE SUBSTANTIAL QUESTIONS OFLAW STATED ABOVE..Il ALLOW THR APPEAL AND SHKT ASIDE THREORDER PASSED BY THE ITAT, BANGALORE IN ITANO.1518/BANG/2013|DATED:07 /02 /201ANT)CONFIRM,THRORDEROFTHEAPPBRLLATECOMMISSIONBR CONFIRMING THE ORDER PASSED BYTHEDEBPUTYCOMMISSIONER.ORINCOMETAX,CIRCLE-11(2), BANGALORE.| THIS APPBAL COMING ON FOR ADMISSION|THIS DAY,VINEET SARAN J., DELIVERED THE!RFOLLOWING: JUDGMENT The revenue has preferred this appeal againstthe order passed by the tribunal. The substantial|questions of law that is raised in this appeal are as|under: ut. “Whether in the facts and circumstancesof the case, the Tribunal is Justified in law|in holding that the Commissioner of income|tax was justified in deleting the aforesaid|additionsof.Rs. 10,92,61,900/-andRs. 16,42,52,367/- for A.Y.2009-10 and2010-11 respectively on the ground thatthe advances made to its related parties| were for the purposes of purchase and_conversion of agricultural lands withoutappreciating that no agricultural land were|purchased by the related parties on behalfof the assessee company and as_ suchthere was no evidence that these advances|were for business purposes?”| u. “Whether in the facts and circumstances|of the case, the Tribunal is Justified in law|in|holdingthatin|Substance|the|Commissioner of Income Tax was _ nojustified in confirming the disallowance|was of interest of Rs.10,92,61,900/- and|Rs. 16,42,52,367/- for A.Y.2009-10 and2010-11 respectively without appreciating|the decisions of the Kerala High court in|the cases of Commissioner of Income tax|VeCTSUSMangalamPublications|andservices India private limited reported in|2010|Vol|324TR.Page316andCommissionerofIncomeTax|VeCTSUSHarrison's Malayalam Ltd reported in Vol|25 taxman. com page 546 (2012) relied on|by the Commissioner ofIncome Tax”? uu “Whether in the facts and circumstancesof the case, the Tribunal is Justified in law|in holding that the interest-free loans given| to assessee sister concerns and others wasa measure of commercial expediency by|relyingOTLits OUWwpetitionin|theassessee’s own case on itS own orders|dated 7/11/2013 in 346 of 2012 and|1126 of 2011 for the A.Y.2007-O8 and|2008-09 respectively without appreciating|that the orders dated 7/11/2015 have notbecome final”? 2. In fact, in the case of M/s Bagmane)Constructions Pvt. Ltd. — the sister concern of the|assessee, in a batch of appeals in ITA No.473/13 andconnected matters disposed off on 16.09.2014, this|Court has held that the money given by M/s|Bagmane Developers Pvt. Ltd to its sister concern Iforacquisition of land is for business purpose and has|upheld the order of the tribunal. 3. In that view of the matter, this claim relating|to interest on that advance is also not taxable and is an allowable expenditure. This is what the tribunal|has held. Therefore, we do not see any merit in thisappeal. No substantial question of law do arise for| @;0386-.278;0�80�7,83�244-29����@@;.680:9="�244-29�83� 683A833-6�� �������������������������������������������������������+�#��