Ita/409/2012 Of The Commissioner Of Income Tax v. M/S Ge Medical Systems (I) (P) Ltd

IN THE HIGH COURT OF KARNATAKA AT BENGALURUDATED THIS THE 18 DAY OF NOVEMBER 2070. PRESENT| THE HON’BLE MR. JUSTICE ALOK ARADHE AND| THE HON’BLE MR. JUSTICE H.T.NARENDRA PRASAD BETWEEN: LT.A. NC.409 OF 2012 1.|THE COMMISSIONER OF INCOME-TA® C.R. BUILDING, QUEENS ROAD BANGALORE. 2.|THE DEPUTY COMMISSIONER OF INCOME-TAX. CIRCLE-1(1), PUNE. 3.THE DY. COMMISSIONER OF INCOME-TAX CIRCLE-11(3), BANGALORE. (BY SRI. K.V. ARAVIND, ADV.,) .., APPELLANTS~ AND" M/S. GE MEDICAL SYSTEMS (I) (P) LTD., NO.122, (PART-1), EPIP.WHITE FIELD ROAD, BANGALORE-560066. (BY SRI. PERCY PARDIWALA, SR. COUNSEL FORSRI. PAI DHUNGAL ANKUR, ADV.) ~. RESPONDENT THIS ITA IS FILED UNDER SECTION 260-A OF I.T. ACT,|1961L ARISING OUT OF ORDER DATED 13.0/7.20L2 PASSED IN ITNO.770/BANG/2010 FOR THE ASSESSMENT YEAR 2002-03,PRAYING TQ: (I) FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW.STATED THEREIN.» (11) ALLOW THE APPEAL AND SET ASIDE THE ORDERS.PASSED BY THE ITAT, BANGALORE INITA NO.770/BANG/2010°DATED 13-0O0/7-20O0L2 CONFIRMING THE ORDER OF THE APPELCOMMISSIONER AND CONFIRM THE ORDER PASSED BY THEDEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-1(1), PUNE, IN.THE INTEREST OF JUSTICE AND EQUITY. THIS|LIACOMING|ONFOR.HEARING,THISALOK ARADHE J.,DELIVERED THE FOLLOWING: | DAY, | JUDGMENT This appeal under Section 260A of the Income TaxAct, 1961 (nereinafter referred to as the Act for short)nas been preferred by the revenue. The subject matterof the appeal pertains to the Assessment year 2002-03.The appeal was admitted by a bench of this Court videorder dated 21.02.2013 on the following substantial|questions of law:| (1)Wnetner the Appellate Authoritieswere correct in holaing tnat the assessee Is entitled to claim deduction in respect of.expenditure incurred toward payment of.voluntary retirement compensation of the|employeestakenOVeTfromM/s.Elpro-International when the same was not [Incurred solely and exclusively for the purpose of.DuSINeSS. (11)Whether Appellate Authorities werecorrect in failing to take into consideration|that the business of M/s. Elpro Internationalcontinue and taking over of the employees|eligible for voluntary retirement was a deviceto avoid tax and recorded a perverse finding. 2 |For the reasons assigned by us in the.judgment passed)today in I.7T.A.No.410/2012 thesubstantial questions of law framed by a bench of this.court are answered against the revenue and in favour of the assessee. In the result, we do not find any merit in.this appeal, the same fails and is nereby dismissed. Sd/-JUDGE. SS| Sd/-—JUDGE.