Tax v. Novell Software Development India Pvt. Ltd.[1

Digitally signed by MALAK NLocation: HIGH COURTOF KARNATAKA NC: 2023:KHC:33845-DB IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 19 DAY OF SEPTEMBER, 2023 PRESENT THE HON'BLE MR JUSTICE P.S.DINESH KUMAR AND THE HON'BLE MR JUSTICE T.G. SHIVASHANKARE GOWDA INCOME TAX APPEAL NO. 558 OF 2023 BETWEEN: 1. PR. COMMISSIONER OF INCOME TAX CENTRAL C R BUILDING, QUEENS ROAD, BANGALORE-560 001. C R BUILDING, QUEENS ROAD, BANGALORE-560 001. 2. THE DEPUTY COMMISSIONER OF INCOME TAX CIRCLE-5(1)(1), BANGALORE. CIRCLE-5(1)(1), BANGALORE. …APPELLANTS (BY SRI. SANMATHI E I, ADV.) AND: M/S NSL SUGARS LIMITED NO.60/1, 2 CROSS, RESIDENCY ROAD BENGALURU-25, PAN- …RESPONDENT THIS ITA IS FILED UNDER SEC.260-A OF INCOME TAX ACT 1961, ARISING OUT OF ORDER DATED 19/04/2023 PASSED IN ITA NO.120/BANG/2023, FOR THE ASSESSMENT YEAR 2012-2013. PRAYING TO DECIDE THE FOREGOING QUESTION OF LAW AND / OR SUCH OTHER QUESTIONS OF LAW AS MAY BE FORMULATED BY THE HONBLE COURT AS DEEMED FIT AND SET ASIDE THE APPELLATE ORDER DATED 19/04/2023 PASSED BY THE INCOME TAX APPELLATE TRIBUNAL, C BENCH, BENGALURU, IN APPEAL PROCEEDINGS NO. ITA NO. 120/BANG/2023 FOR ASSESSMENT YEAR 2012-13, AS SOUGHT FOR IN THIS APPEAL, AND TO GRANT SUCH OTHER RELIEF AS DEEMED FIT, IN THE INTEREST OF JUSTICE. THIS APPEAL, COMING ON FOR ADMISSION, THIS DAY, P.S.DINESH KUMAR J., DELIVERED THE FOLLOWING: JUDGMENT This appeal by the Revenue challenging the order dated 19.04.2023 in ITA No.120/Bang/2023 dated 19.04.2023 has been admitted to consider following question of law: "Whether on the facts and in the circumstances of the case, the Tribunal's order is perverse in nature in restoring the matter to assessing authority to re-consider the issue re4lating to 14A disallowance with specific direction that no disallowance should be made if the assessee has not earned any exempt income earned during the year under consideration ignoring that there is no such restriction provided in Section 14A of the Act and when Circular No.14 of 202 issued by CBDT specifically stipulates that 14A is attracted even though there is no exempt income?" 2. Heard Shri E.I. Sanmathi learned standing counsel for the Revenue. He submitted that the only question for consideration in this appeal is covered against the Revenue in Pr. Commissioner of Income Tax Vs. Novell Software Development India Pvt. Ltd.[1] His submission is placed on record. 4. Hence, the following: ORDER (i) Appeal is dismissed; (ii) Question of law is answered in favour of the assessee and against the Revenue. No costs. Sd/- JUDGE Sd/- JUDGE PA List No.: 1 Sl No.: 43 1 (2021) 434 ITR P 154 (KAR)