Padmini Products (P) Ltd. v. The Deputy Commissioner of Income-tax Circle-12(2), Bengaluru
[Citation -2020-LL-1005-41]

Citation 2020-LL-1005-41
Appellant Name Padmini Products (P) Ltd.
Respondent Name The Deputy Commissioner of Income-tax Circle-12(2), Bengaluru
Court HIGH COURT OF KARNATAKA
Relevant Act Income-tax
Date of Order 05/10/2020
Assessment Year 2009-10
Judgment View Judgment
Keyword Tags substantial question of law • written down value • tangible material • cost incurred • actual cost • reopening of assessment
Bot Summary: The subject matter of the appeal pertains to the Assessment years 2005-06 to 2008-09. Learned counsel for the assessee submitted that he does not want to press the appeal on substantial question of law No.1. For the reasons assigned by us in the order passed today in assessee s case for Assessment Year 2005-06 in ITA No.154/2014, the substantial questions of law are answered in favour of the assessee. As a result, the order dated 14.11.2014 in respect of Assessment Year 2009-10 is quashed.


1 IN HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS 5TH DAY OF OCTOBER 2020 PRESENT HON BLE MR. JUSTICE ALOK ARADHE AND HON BLE MR. JUSTICE H.T.NARENDRA PRASAD I.T.A. NO.38 OF 2015 BETWEEN: M/S. PADMINI PRODUCTS (P) LTD., NO.157, K. KAMARAJ ROAD BENGALURU 560042 (REPRESENTED BY ITS DIRECTOR SRI. PRABHU KIRAN, AGED ABOUT 60 YEARS S/O LATE NAGARAJ N. VEMULKAR). ... APPELLANT (BY SRI. CHYTHANYA K.K. ADV.,) AND: DEPUTY COMMISSIONER OF INCOME TAX CIRCLE-12(2), 14/3, 4TH FLOOR RASHTROTHANA BHAVAN NRUPATUNGA ROAD, BENGALURU-560001. ... 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 14.11.2014 PASSED IN ITA NO.242/BANG/2013, FOR ASSESSMENT YEAR 2009-10. (I) FORMULATE SUBSTANTIAL QUESTIONS OF LAW STATED ABOVE. (II) ALLOW APPEAL AND SET ASIDE IMPUGNED ORDER OF ITAT, BENGALURU C BENCH BEARING IN ITA NO.242/BANG/2013, DATED 14.11.2014 2 THIS ITA COMING ON FOR FURTHER 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 years 2005-06 to 2008-09. appeal was admitted by bench of this Court vide order dated 06.02.2015 on following substantial questions of law: (i) Whether on facts and in circumstances of case, Honourable ITAT was right in law in upholding action of Learned Respondent in re-opening assessment for assessment year 2009-10, under Section 147 of IT Act in absence of any tangible material but merely on basis of disallowance made in assessment year 2007-08? 3 (ii) Whether on facts and in circumstances of case, Honourable ITAT was right in law in holding that Appellant is eligible to claim depreciation only with reference to written down value of transferred assets in hands of predecessor firm and not with reference to actual cost incurred by it? (iii) Whether on facts and in circumstances of case, Honourable ITAT was right in law in upholding action of Learned Respondent in invoking 5th proviso to Section 32(1) of IT Act in assessment years subsequent to assessment year in which succession took place? (iv) Whether on facts and in circumstances of case, Honourable ITAT was right in law in upholding action of Learned Commissioner (Appeals) in invoking Explanation 3 to section 43(1)? 4 2. Learned counsel for assessee submitted that he does not want to press appeal on substantial question of law No.1. For reasons assigned by us in order passed today in assessee s case for Assessment Year 2005-06 in ITA No.154/2014, substantial questions of law are answered in favour of assessee. As result, order dated 14.11.2014 in respect of Assessment Year 2009-10 is quashed. In result, appeal is also allowed. Sd/- JUDGE Sd/- JUDGE ss Padmini Products (P) Ltd. v. Deputy Commissioner of Income-tax Circle-12(2), Bengaluru
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