The Pr. Commissioner Of Income Tax vs M/S. Adecco India Pvt. Ltd.,
2021 Latest Caselaw 2485 Kant

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     IN THE HIGH COURT OF KARNATAKA AT BENGALURU

          DATED THIS THE 29TH DAY OF JUNE 2021

                        PRESENT

          THE HON'BLE MR. JUSTICE ALOK ARADHE

                           AND

     THE HON'BLE MR. JUSTICE HEMANT CHANDANGOUDAR

                  ITA NO.1053 OF 2017
BETWEEN:

1.     THE PR. COMMISSIONER OF INCOME-TAX
       5TH FLOOR, BMTC BUILDING,
       80 FEET ROAD, KORMANGALA,
       BENGALURU-560 095.

2.     THE DEPUTY COMMISSIONER OF
       INCOME-TAX, CIRCLE -1(1)(1),
       2ND FLOOR, BMTC BUILDING
       80 FEET ROAD, KORMANGALA,
       BENGALURU-560 095.
                                         ...APPELLANTS

(BY SRI K.V. ARAVIND, ADVOCATE)

AND:

     M/S. ADECCO INDIA PVT. LTD.,
     NO.2, SAI DEEP, SHRINIDHI
     NAL, WIND TUNNEL ROAD,
     MURGESH PALYA, BENGALURU.
                                        ...RESPONDENT

(BY SRI THOMAS VELLAPALLY, ADVOCATE)
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                            ---

      THIS I.T.A. IS FILED UNDER SECTION 260-A OF INCOME
TAX ACT 1961, ARISING OUT OF ORDER DATED 28.07.2017
PASSED IN ITA NO.1952/BANG/2016, FOR THE ASSESSMENT
YEAR 2013-14, PRAYING TO:
      (i) FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW
STATED THEREIN.
      (ii) ALLOW THE APPEAL AND SET ASIDE THE ORDERS
PASSED BY THE INCOME TAX APPELLATE TRIBUNAL, BENGALURU
IN ITA NO.1952/BANG/2016 DATED 28.07.2017 CONFIRMING THE
ORDER OF THE APPELLATE COMMISSIONER AND CONFIRM THE
ORDER PASSED BY THE DEPUTY COMMISSIONER OF INCOME TAX,
CIRCLE-1(1)(1), BENGALURU. TO PASS SUCH OTHER SUITABLE
ORDERS AS THIS HON'BLE COURT DEEMS FIT TO GRANT IN THE
FACTS AND CIRCUMSTANCES OF THE CASE IN THE INTEREST OF
JUSTICE AND EQUITY.

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


                        JUDGMENT

Mr.K.V.Aravind, learned counsel for the revenue.

Mr.Thomas Vellapally, learned counsel for the

assessee.

2. This appeal under Section 260A of the Income

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

has been preferred by the revenue against the order dated

28.07.2017 passed by the Income Tax Appellate Tribunal,

Bengaluru, in ITA No.1952/Bang/2016.

3. The subject matter of the appeal pertains to the

Assessment year 2013-2014. The appeal was admitted by a

bench of this Court vide order dated 06.02.2018 on the

following substantial question of law:

"1) Whether on the facts and circumstances of the case, the Tribunal is justified in setting aside the addition made under Section 2(24)(x) r/w/s 36(1) (va) of the Act disallowed Rs.50,04,40,313/- by following the decision of this Hon'ble Court in the case of M/s.Essae Teraoke Pvt. Ltd. even when the ingredients of said provision are satisfied in case of assessee ignoring the decision of Gujurath High Court in case of Gujurath State Road Transport Corporation (reported in 2012 (Vol.41) Taxman.Com

100) ?"

4. The matter is taken up today. The learned

counsel for the assessee submitted that the substantial

question of law involved in this appeal has already been

answered in favour of the assessee by this Court vide

judgments dated 4.02.2014 in the case of COMMISSIONER

OF INCOME-TAX Vs. SABARI ENTERPRISES reported in

[2008] 298 ITR 141 (KARNATAKA) and in the case of

ESSAE TERAOKA (P.) LTD. Vs. DEPUTY COMMISSIONER

OF INCOME-TAX, CIRCLE-11(3) reported in [2014] 43

TAXMANN.COM 33 (KARNATAKA) .

5. The aforesaid submission has not been disputed by

the learned counsel for the revenue.

6. In view of submission and the for the reasons

assigned in the aforesaid judgments the substantial question

of law framed in this appeal is answered in favour of the

assessee and against the revenue.

In the result, appeal filed by the revenue fails and

stands dismissed.

Sd/-

JUDGE

Sd/-

JUDGE HR