Metrix Precision Components Pvt. Limited v. The Deputy Commissioner of Income-tax Circle-12(1), Bangalore
[Citation -2020-LL-0923-50]

Citation 2020-LL-0923-50
Appellant Name Metrix Precision Components Pvt. Limited
Respondent Name The Deputy Commissioner of Income-tax Circle-12(1), Bangalore
Court HIGH COURT OF KARNATAKA
Relevant Act Income-tax
Date of Order 23/09/2020
Assessment Year 2008-09
Judgment View Judgment
Keyword Tags computation of taxable total income • benefit of deduction
Bot Summary: The subject matter of the appeal pertains to the Assessment year 2008-09. The appeal was admitted by a bench of this Court vide order dated 20.03.2015 on the following substantial question of law: Whether the Tribunal is correct in sustaining the order of the Respondent in denying the benefit of deduction u/s 10B of the Act in the computation of taxable total income on the wrong interpretation of as well as on the misreading of the said provisions especially the sub-section. Whether the Tribunal is correct in sustaining the order of the Respondent 3 in denying the benefit of deduction u/s 10B of the Act in the computation of taxable total income on the misconstruction of the facts of the case thereby establishing perversity in the impugned order Whether the Appellate Tribunal is correct in confirming the disallowance of the deduction u/s 10B of the Act overlooking the principles laid down by the Supreme Court in the decision reported in 223 ITR 271 and the principles laid down by the Co-ordinate Bench rendered in the case of M/s Granite Mart P Ltd., 2. For the reasons assigned by us in the order passed today in I.T.A.No. 384/2014, the substantial questions of law framed by this court are answered in favour of the assessee and against the revenue. The orders passed by the Assessing Officer, Commissioner of Income Tax and the order of the Tribunal insoafar it deprives the assessee of the benefit under Section 10B of the Act are hereby quashed and the 4 assessee is entitled to the benefit of deduction under Section 10B of the Act.


1 IN HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS 23RD DAY OF SEPTEMBER 2020 PRESENT HON BLE MR. JUSTICE ALOK ARADHE AND HON BLE MR. JUSTICE H.T.NARENDRA PRASAD I.T.A. NO.383 OF 2014 BETWEEN: M/S. METRIX PRECISION COMPONENTS PVT. LIMITED 46, KSSIDC INDUSTRIAL ESTATE KUMBALGODU, BANGALORE REPRESENTED BY ITS MANAGING DIRECTOR SRI. PRADEEP KASHYAP AGED ABOUT 50 YEARS S/O SRI. GOPINATH M. ... APPELLANT (BY SRI. BALARAM R. RAO, ADV.,) AND: DEPUTY COMMISSIONER OF INCOME TAX CIRCLE-12(1), BANGALORE. ... RESPONDENT (BY SRI. K.V. ARAVIND, ADV.,) --- THIS ITA IS FILED UNDER SECTION 260-A OF I.T. ACT, 1961 ARISING OUT OF ORDER DATED 11.04.2014 PASSED IN ITA NO.1598/BANG/2012 FOR ASSESSMENT YEAR 2008-09, PRAYING THAT THIS HON BLE COURT MAY BE PLEASED TO: (I) FORMULATE SUBSTANTIAL QUESTIONS OF LAW STATED ABOVE. (II) ALLOW APPEAL AND SET ASIDE ORDER OF INCOME TAX APPELLATE TRIBUNAL DATED 11-04-2014 2 BEARING ITA NO.1598/BANG/2012 FOR ASSESSMENT YEAR 2008-09. THIS ITA COMING ON FOR FINAL HEARING, THIS DAY, ALOK ARADHE J., DELIVERED FOLLOWING: JUDGMENT This appeal under Section 260A of Income Tax Act, 1961 (hereinafter referred to as Act for short) has been preferred by assessee. subject matter of appeal pertains to Assessment year 2008-09. appeal was admitted by bench of this Court vide order dated 20.03.2015 on following substantial question of law: (i) Whether Tribunal is correct in sustaining order of Respondent in denying benefit of deduction u/s 10B of Act in computation of taxable total income on wrong interpretation of as well as on misreading of said provisions especially sub-section (3)?. (ii) Whether Tribunal is correct in sustaining order of Respondent 3 in denying benefit of deduction u/s 10B of Act in computation of taxable total income on misconstruction of facts of case thereby establishing perversity in impugned order? (iii) Whether Appellate Tribunal is correct in confirming disallowance of deduction u/s 10B of Act overlooking principles laid down by Supreme Court in decision reported in 223 ITR 271 and principles laid down by Co-ordinate Bench rendered in case of M/s Granite Mart P Ltd.,? 2. For reasons assigned by us in order passed today in I.T.A.No.384/2014, substantial questions of law framed by this court are answered in favour of assessee and against revenue. orders passed by Assessing Officer, Commissioner of Income Tax (Appeals) and order of Tribunal insoafar it deprives assessee of benefit under Section 10B of Act are hereby quashed and 4 assessee is entitled to benefit of deduction under Section 10B of Act. In result, appeal is allowed. Sd/- JUDGE Sd/- JUDGE ss Metrix Precision Components Pvt. Limited v. Deputy Commissioner of Income-tax Circle-12(1), Bangalore
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