The Pr Commissioner Of Income Tax vs M/S Sanyo India Pvt Ltd
2021 Latest Caselaw 1463 Kant

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     IN THE HIGH COURT OF KARNATAKA AT BENGALURU

        DATED THIS THE 28TH DAY OF JANUARY 2021

                          PRESENT

         THE HON'BLE MR. JUSTICE ALOK ARADHE

                             AND

     THE HON'BLE MR. JUSTICE NATARAJ RANGASWAMY

                   I.T.A. NO.383 OF 2015
BETWEEN:

1.     THE PR. COMMISSIONER OF INCOME TAX
       C.R. BUILDINGS, QUEENS ROAD
       BANGALORE-560001.

2.     DEPUTY COMMISSIONER OF INCOME TAX
       CIRCLE-12(3), BANGALORE.
                                             .... APPELLANTS
(BY MR. E.I. SANMATHI , ADV.,)

AND:

1.     M/S. SANYO INDIA PVT. LTD.,
       NO.45, 2ND FLOOR
       JUBLEE BUILDING
       MUSEUM ROAD, BANGALORE
       PAN No.AAJCS 0730M.

2.     OFFICIAL LIQUIDATOR
       OF M/S. SANYO BPL PVT. LTD.,
       CORPORATE BHAWAN
       NO.26-27, 12TH FLOOR
       M.G. ROAD, BANGALORE-560001
       (AMENDED AS PER COURT
       ORDER DATED 15.12.2020).
                                            ... RESPONDENTS
(BY MR. NAGESHWARA RAO, ADV., FOR R1
 V/O DTD:15.12.2020 MR. ANUPAM AGARWAL, ADV., FOR R2)
                           ---
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     THIS I.T.A. IS FILED UNDER SEC. 260-A OF INCOME TAX
ACT 1961, ARISING OUT OF ORDER DATED 27.03.2015 PASSED
IN IT(TP)A NO.224/BANG/2014 FOR THE ASSESSMENT YEAR
2009-10, PRAYING TO:
     (i) DECIDE THE FOREGOING QUESTION OF LAW AND/OR
SUCH OTHER QUESTIONS OF LAW AS MAY BE FORMULATED BY
THE HON'BLE COURT AS DEEMED FIT.
     (ii) SET ASIDE THE APPELLATE ORDER DATED 27.03.2015
PASSED BY THE ITAT, 'B' BENCH, BANGALORE, AS SOUGHT FOR,
IN   THE    RESPONDENT-ASSESSEE'S     CASE,   IN   APPEAL
PROCEEDINGS IN IT(TP)A NO.224/BANG/2014 FOR A.Y.2009-10.

     THIS I.T.A. COMING ON FOR 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 2009-10. The appeal was

admitted by a Bench of this Court vide order dated

30.10.2015 on the following substantial questions of law:

"1. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in directing the TPO to adopt RP method and rejecting the TNM method adopted by the TPO, without ascertaining its nexus with the business activity of the taxpayer?"

2. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in directing the TPO to adopt RP method ignoring the fact that the marketing expenses/recovery of expenses cannot be bench-marked under the RP method and the same are to be bench-marked only if TNM method is adopted as the Most Appropriate Method?"

2. Learned counsel for the respondent No.1 has filed a

memo along with a copy of the order dated 19.08.2016

passed in OLR No.8/2016 by which a Bench of this Court has

directed winding up of the assessee. It is also pointed out

from paragraph 5 of the order that no objection certificate

has been obtained from the Deputy Commissioner of

Income-tax, Circle VI, Bengaluru, vide communication dated

06.03.2015 stating that there are no outstanding demand /

dues against the company. It is therefore, submitted that

the questions of law involved in this appeal have been

rendered academic.

3. In view of the aforesaid submission, the appeal is

disposed of with liberty to revive the same if the occasion so

arises.

Sd/-

JUDGE

Sd/-

JUDGE

RV