Rp/124/2021 Of M/S. Bharat Fritz Werner Ltd v. The Commissioner Of Income Tax

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 8 DAY OF JULY, 2022 PRESENT THE HON’BLE MR. ALOK ARADHE ACTING CHIEF JUSTICE AND THE HON’BLE MR.JUSTICE R. NATARAJ REVIEW PETITION NO.124 OF 2021IN ITA NO.266/2013 BETWEEN: M/S. BHARAT FRITZ WERNER LTD., OFF TUMKUR ROAD YESHWANTHPUR P.O. BANGALORE - 560 002 REPRESENTED HEREIN BY ITS CHIEF FINANCIAL OFFICER MR. SUJOY DASGUPTA ... PETITIONER (BY SRI. T. SURYANARAYANA, SENIOR ADV. A/W SMT. MAHIMA GOUD, ADV.,) AND: 1. THE COMMISSIONER OF INCOME TAX C.R. BUILDING, QUEENS ROAD, BANGALORE-560001. 2. THE JOINT COMMISSIONER OF INCOME TAX (OSD) CIRCLE -11(2) RASHTROTHANA BHAVAN, NRUPATHUNGA ROAD, BANGALORE-560002. ... RESPONDENTS (BY SRI. K.V.ARAVIND, ADV.,) - - - THIS REVIEW PETITION IS FILED UNDER ORDER XLVII RULE 1 READ WITH SECTION 114 OF CPC, PRAYING TOREVIEW THE JUDGMENT DATED 09.02.2021 PASSED IN ITA NO.266/2013, TO THE EXTENT HEREIN PRAYED AND ETC. THIS REVIEW PETITION COMING ON FOR ADMISSION, THIS DAY, ACTING CHIEF JUSTICE MADE THE FOLLOWING: ORDER Sri. T. Suryanarayana, learned Senior counsel for Smt.Mahima Goud, learned counsel for the petitioner/assessee. Sri. K.V. Aravind, learned counsel for the respondents/revenue. This petition has been filed seeking review of the judgment dated 09.02.2021 passed in I.T.A.No.266/2013. 2. Learned Senior counsel for the petitioner submitted that the assessee had the funds worth Rs.120 crores, whereas the loan was advanced only to the tune of Rs.64.38 lakhs. Therefore, the statutory presumption arises in favour of the assessee that it has spent amount from its own fund. 3. On the other hand, learned counsel for the Revenue submitted that the Tribunal has not recorded any finding whether or not any interest free loans were given from the borrowed funds or from the assessee's own funds. 4. After hearing the learned counsel for the parties, it is clarified that the remand on the second substantial question of law is confined to a finding whether or not the assessee had its own fund in excess of amount of loan advanced to the sister concerns. With the aforesaid clarification, the review petition is disposed of. Sd/- ACTING CHIEF JUSTICE Sd/- JUDGE PMR