Ita v. Asst. Commissioner Of Income Tax

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 6TH DAY OF FEBRUARY 27071 PRESENT| THE HON’BLE MR. JUSTICE ALOK ARADHE AND| THE HON’‘’BLE MR. JUSTICE NATARAJ RANGASW A BETWEEN: ILT.A. NO.369 OF 2015 SRI. GANESH SHIPPING AGENCY|REP. BY ITS MANAGING PARTNER,SRI. B. NAGARAJ SHETTYO5-152, SRI. RAM BUILDINGKOTTARA CHOWKI, DEREBAILMANGALORE-5/5006. (BY MR. S. ANNAMALAI, ADV., FORMR. M. LAVA, ADV.,) — ADPELLANT AND* ASST. COMMISSIONER OF INCOME TAXCIRCLE-1(1), C.R. BUILDING ANNEXE, ATTAVAR, MANGALORE-5/5001. (BY MR. DILIP KUMAR, ADV., FOR MR. K.V. ARAVIND, ADV.,) | .., RESPONDENT THIS I.T.A. IS FILED UNDER SEC. J6O0-A OF INCOME TAXACT 1961, ARISING OUT OF ORDER DATED 23.03.2015 PASSEDIN ITA NO.299/BANG/2014 FOR THE ASSESSMENT YEAR 2010-11,PRAYING TQ: | (i) FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW AS.STATED ABOVE AND ANSWER THE SAME IN FAVOUR OF THE.APPELLAN ][ (ii) ALLOW THE APPEAL AND SET ASIDE THE FINDINGS TO.THE EXTENT AGAINST THE APPELLANT IN THE ORDER PASSED BY.THE ITAT, BANGALORE BENCH IN ITA NO.299/BANG/2014—RELATING TO ASSESSMENT YEAR 2020-11 VIDE ITS ORDER.DATED 23.03.2015. | THIS I.7T.A. COMING ON FOR’ HEARING, THIS’ DAY, |ALOK ARADHE J.,DELIVERED THE FOLLOWING: | JUDGMENT This appeal under Section 260-A of the Income TaxAct, 1961 (nereinafter referred to as the Act, for snort) nas|been filed by the assessee. The subject matter of tneappeal pertains to the Assessment Year 2010-11. Tne appealwas admitted by a Bencn of this Court vide order dated10.01.2018 on the following substantial question of law: “Whether the Income Tax Appellate Tribunal! Isjustified in law in sustaining the disallowance|of expenses of Rs.9,74,418/- being 10% of'theexpensespaidtoport workersdS|incentives even when the books of account|Nave been accepteaq are not rejected bypointing to any defects therein and the entire|expenaiture is supported by documentary|evidence on the facts and circumstances ofthe case? 2. For the reasons assigned by us in ITA No.366/2015_passed today, the impugned order of the Tribunal dated23.03.2015 insofar as it contains the findings to the extent of disallowance of 10% of the expenses incurred by theassessee in relation to tne Assessment Year 2ZO10-11 Isnereby quasned. Accordingly, the appeal is allowed. Sd/-JUDGE Sd/-JUDGE RV