Karnataka High Court
The Pr. Commisioner Of Income Tax Cit (A) vs M/S Allegis Services India Pvt Ltd on 5 August, 2024
Author: S.G.Pandit
Bench: S.G.Pandit
-1-
NC: 2024:KHC:30968-DB
ITA No. 12 of 2020
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 5TH DAY OF AUGUST, 2024
PRESENT
THE HON'BLE MR JUSTICE S.G.PANDIT
AND
THE HON'BLE MR JUSTICE C.M. POONACHA
INCOME TAX APPEAL NO. 12 OF 2020
BETWEEN:
1. THE PR. COMMISSIONER OF INCOME TAX
CIT (A),
5TH FLOOR, BMTC BUILDING,
80 FEET ROAD,
KORAMANGALA
BENGALURU-560095
2. THE DEPUTY COMMISSIONER OF INCOME TAX
CIRCLE-1(1)(1)
2ND FLOOR, BMTC BUILDING,
80 FEET ROAD,
KORAMANGALA
Digitally
BENGALURU-560095
signed by
BHARATHI S ...APPELLANTS
Location: (BY SRI E.I. SANMATHI., ADVOCATE FOR
HIGH SRI SUSHAL TIWARI N, ADVOCATE)
COURT OF
KARNATAKA
AND:
M/S ALLEGIS SERVICES INDIA PVT LTD
COMMERCE @ MANTRI LEVEL-3
BANNERGHATTA ROAD
BENGALURU-560076
PAN AAFCA0825M
...RESPONDENT
(BY SRI. T SURYANARAYANA, SENIOR COUNSEL FOR
SMT. TANMAYEE RAJKUMAR.,ADVOCATE)
-2-
NC: 2024:KHC:30968-DB
ITA No. 12 of 2020
THIS ITA / INCOME TAX APPEAL IS FILED UNDER SEC.260-A
OF INCOME TAX ACT 1961, PRAYING TO FORMULATE THE
SUBSTANTIAL QUESTIONS OF LAW STATED ABOVE, ALLOW THE
APPEAL AND SET ASIDE THE ORDERS PASSED BY THE INCOME TAX
APPELLATE TRIBUNAL, BENGALURU IN ITA NO.2199/BANG/2018
DATED 05/04/2019 FOR ASSESSMENT YEAR 2012-2013 ANNEXURE-
D CONFIRMING THE ORDER OF THE APPELLATE COMMISSIONER AND
CONFIRM THE ORDER PASSED BY THE DEPUTY COMMISSIONER OF
INCOME TAX, CENTRAL CIRCLE- 1(1)(1), BENGALURU AND ETC.
THIS APPEAL, COMING ON FOR HEARING, THIS DAY,
JUDGMENT WAS DELIVERED THEREIN AS UNDER:
CORAM: HON'BLE MR JUSTICE S.G.PANDIT
and
HON'BLE MR JUSTICE C.M. POONACHA
ORAL JUDGMENT
(PER: HON'BLE MR JUSTICE C.M. POONACHA)
The present appeal is filed by the revenue under
Section 260-A of the Income Tax Act, 19611 challenging the
order dated 5.4.2019 passed in ITA No.2199/Bang/2018 by
the Income-Tax Appellate Tribunal, Bengaluru2, for the
Assessment Year 2012-2013, wherein the appeal filed by the
revenue challenging the order dated 27.4.2018 by the
Commissioner of Income-Tax (Appeals)-1, Bengaluru, has
been dismissed.
Hereinafter referred to as the 'Act, 1961'
Hereinafter referred to as 'ITAT'
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2. This Court, by order dated 12.10.2020 has
admitted the above appeal to consider the following
substantial questions of law:
"1. Whether on the facts and circumstances of the case,
the Tribunal is perverse in not considering the fact that
the assessee had filed the return of income on
30.11.2012 which is subsequent to the judgment of the
Hon'ble High Court in the case of M/s. Samsung
Electronics Co. Ltd.,?
2. Whether on the facts and circumstances of the case,
the Tribunal is right in law in setting aside the
disallowance made by assessing authority under section
40(a)(ia) of the Act even though the assessee had failed
to deduct TDS on payment of Rs.19,50,43,544 to non
residents towards purchase of shrinked wrapped software
attracting section 9(1)(vi) of the Act?"
3. Heard the submissions of learned counsels Sri
E.I.Sanmathi along with Sri Sushal Tiwari for the revenue
and learned Senior Counsel Sri T.Suryanarayan Rao
appearing along with Sri Tanmayee Rajkumar for the
assessee.
4. It is submitted by the learned Senior Counsel for
the assessee that the substantial questions of law which
have been framed for consideration in the above appeal are
covered by the judgment of the Hon'ble Supreme Court in
the case of Engineering Analysis Centre of Excellence
NC: 2024:KHC:30968-DB
(P.) Ltd., v. Commissioner of Income-tax3. It is further
contended that the questions that arise in the present appeal
are covered by the judgment of a coordinate Bench of this
Court in the case of Allegis Services (India) Private Ltd.,
v. The Deputy Commissioner of Income Tax, Circle
1(1)(1), Bangalore & anr.,4. Hence, he seeks for dismissal
of the above appeal.
5. Per contra, learned counsel for the revenue
submits that Review Petitions have been filed before the
Hon'ble Supreme Court seeking review of its judgment in the
case of Engineering Analysis Centre of Excellence (P.)
Ltd.,3 and that all the Review Petitions have not be
considered. However, he does not dispute the fact that
substantial question of law No.1 is covered by a coordinate
Bench judgment of this Court in the case of Allegis
Services (India) Private Ltd.,4. It is further submitted
that substantial question of law No.2 is peculiar to the facts
of each case.
(2021) 125 taxmann.com 42(SC)
Judgment dated 17.4.2021 passed in ITA No.40/2019
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6. In view of the submission made, as noticed
above, the present appeal is disposed of having regard to the
undisputed position that the same is covered by a coordinate
Bench judgment of this Court in the case of Allegis
Services (India) Private Ltd.,4. Hence, substantial
questions of law are answered in favour of the assessee and
against the revenue.
Sd/-
(S.G.PANDIT)
JUDGE
Sd/-
(C.M. POONACHA)
JUDGE
nd
