Pr. Commissioner Of Income Tax-4 vs M/S. Menzies Aviation Bobba ...
2021 Latest Caselaw 1408 Kant

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     IN THE HIGH COURT OF KARNATAKA AT BENGALURU

        DATED THIS THE 25TH DAY OF JANUARY 2021

                        PRESENT

         THE HON'BLE MR. JUSTICE ALOK ARADHE

                            AND

     THE HON'BLE MR. JUSTICE NATARAJ RANGASWAMY

                 I.T.A. NO.1064 OF 2017
BETWEEN:

1.     PR. COMMISSIONER OF INCOME TAX-4
       5TH FLOOR, BMTC BUILDING
       KORAMANGALA, BANGALORE.

2.   THE DEPUTY COMMISSIONER OF INCOME TAX
     CIRCLE-4(1)(2), BANGALORE.
                                         .... APPELLANTS
(BY MR. E.R. INDRAKUMAR, SR. COUNSEL FOR
    MR. E.I. SANMATHI, ADV.,)

AND:

M/S. MENZIES AVIATION
BOBBA (B'LORE) PVT. LTD.,
PLOT NO.C-041, BANGALORE
INTERNATIONAL AIRPORT
DEVANAHALLI
BANGALORE-560300
PAN: AAECM 6862D.
                                           ... RESPONDENT
(BY MR. A. SHANKAR, SR. COUNSEL FOR
    MR. M. LAVA, ADV.,)
                           ---

      THIS I.T.A. IS FILED UNDER SEC. 260-A OF INCOME TAX
ACT 1961, ARISING OUT OF ORDER DATED 12.07.2017 PASSED
IN ITA NO.1000/BANG/2016 FOR THE ASSESSMENT YEAR 2011-
12, PRAYING TO DECIDE THE FOREGOING QUESTION OF LAW
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AND/OR SUCH OTHER QUESTIONS OF LAW AS MAY BE
FORMULATED BY THE HON'BLE COURT AS DEEMED FIT AND SET
ASIDE THE COMMON APPELLATE ORDER DATED 12-07-2017
PASSED BY THE ITAT, 'C' BENCH, BENGALURU, IN APPEAL
PROCEEDINGS NO ITA NO.1000/BANG/2016 FOR ASSESSMENT
YEAR 2011-12, AS SOUGHT FOR IN THIS APPEAL AND TO GRANT
SUCH OTHER RELIEF AS DEEMED FIT, IN THE INTEREST OF
JUSTICE.

     THIS I.T.A. COMING ON FOR FINAL HEARING, THIS DAY,
ALOK ARADHE J., DELIVERED THE FOLLOWING:

                          JUDGMENT

This appeal under Section 260-A of the Income Tax

Act, 1961 (hereinafter referred to as 'the Act', for short) has

been filed by the revenue. The subject matter of the appeal

pertains to the Assessment Year 2011-12. The appeal was

admitted by a Bench of this Court vide order dated

17.12.2018 on the following substantial questions of law:

"1. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in holding that the BIAL is a statutory body when it cannot be considered as it is a corporate body in which KSIIDC is holding a mere 13% share in BIAL registered under Companies Act and it falls to satisfy the requirements of Section 40IA(4) of the I.T.Act?

2. Whether, on the facts and in the circumstances of the case, the Tribunal is

justified in law in holding that the cargo handling contract entered into with BIAL by assessee is with statutory body satisfying condition set forth in Section 80IA(4) when BIAL is only a company whose motive only making profit and is only a instrument of State?".

2. For the reasons assigned by us in ITA No.186/2016

c/w ITA No.262/2014, the substantial questions of law

framed in this appeal are answered against the revenue and

in favour of the assessee.

In the result, the appeal fails and is hereby dismissed.

Sd/-

JUDGE

Sd/-

JUDGE

RV