Ita/927/2007 Of The Commissioner Of Income Tax v. M/S Dna Networks Pvt Ltd

IN THE HIGH COURT OF KARNATAKA AT BANGALORE DATED THIS THE 14 DAY OF AUGUST 2012 PRESENT THE HON'BLE MR. JUSTICE K.SREEDHAR RAO AND THE HON'BLE MR. JUSTICE B.MANOHAR ITA No.927/2007 BETWEEN : 1 THE COMMISSIONER OF INCOME TAXCENTAL CIRCLE, C.R.BUILDING,CENTAL CIRCLE, C.R.BUILDING, QUEENS ROAD, BANGALORE. 2 THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-7(1),BANGALORE. OF INCOME TAX, CIRCLE-7(1),BANGALORE. ..APPELLANTS (By Sri K V ARAVIND, ADV.) AND : M/S DNA NETWORKS PVT LTDNO.215,BELLARY ROAD,PALACE ORCHARDS,BANGALORE-80. ...RESPONDENT (By Sri. S PARTHASARATHI, ADV.) This ITA IS filed u/S.260-A of I.T.Act, 1961 arising out of Order dated 03-08-2007 passed in ITA No.524/BANG/2006 for the Assessment Year 2003-2004, praying that this Hon'ble Court may be pleased to: i. formulate the substantial questions of law stated therein,ii. allow the appeal and set aside the Order passed by the ITAT, Bangalore in ITA 524/Bang/2006 dated 03-08-2007 confirming the order of the Appellate Commissioner and confirm the order passed by the Asst. Commissioner of Income Tax, Circle-7(1),Bangalore. This ITA coming on for final hearing this day, K.SREEDHAR RAO, J, delivered the following: JUDGMENT In view of the decision of the Supreme Court in Civil Appeal No.5293/2003 in the case of TRF Limited -vs- Commissioner of Income Tax, Ranchi, the question of law is answered against the revenue. However, while passing the consequential order under Section 260 of I.T Act, the AO shall comply with the observations of the Supreme Court in the cited case to find out whether the bad debt written in the books of accounts shown by the assessee in the previous years in terms of Section 36(2) of the IT Act. The appeal is dismissed. Sd/-JUDGE Sd/-JUDGE bkm.