High Court Karnataka High Court

The Commissioner Of Income Tax vs M/S Electornic Research Ltd on 9 July, 2008

Karnataka High Court
The Commissioner Of Income Tax vs M/S Electornic Research Ltd on 9 July, 2008
Author: K.L.Manjunath & B.V.Nagarathna
ITA.No. 997.2667

IN THE HIGH coum' 0F"K}\r€i«ATAKA AT BANGALORE
DATED THIS THE 09TH DAY OF JULY, 2008
PRESENT

THE HGIWBLE MRJUSFICE K.L.MANJUNA'_m'»::':'_:'._

ANI}

THE HOWBLE MRSJUSPICE B.V.NAGAEu§$THA£§A._ 3  ~  

 

I.T.A.NO.997::fA'2OQ4~?  ;,  '* = S
mrwszmn: ' "

1 THE COMMISSIONER d'F..fNP,0ME TAX 
C R BUILDING _  =   

QUEENS ROAD,;:_BANGi§I.Oi§f:;'. 

2 THE ASST CoMIsS'rtj_NSR:" TAX

Vv*CIRc£;E:e2('i}1;  " AV
]BAI}!GALDR.E'a  
 . '      ...APPELLAN'I'S

(By Sri: M'S?' SESH_AGHA.§SA, ADV.)

     _____ 

_ --vM;'S'!3LECFORNlC RESEARCH LTD
* ..oLp' mnms ROAD,
' WRGOPJAKAR
E.'-«ANG-ALORE
 '  RESPONDENT

 AA   [TA filed u[S.260-A of I.'i'.Act, 1961 arising out of
*  Qmgzr dated 10~08----200'7 passed in rm No. 245/Bang/2006
for' the Assessment Year 1999-2000, praying that this

1Hon'bIc Comt may be pleased to:

' VV " "i. formulatxz the substantial questions of law smted therein,

 allow the appeal and Set aside the Order passed by the
ITAT, passed in ITA 245/Bangjzoofi dated 10-O8-2007
confirm the oldest cf the Appelatc Commissioner and order of
the Deputy Commissioner of Income tax, Central circle,

Bangalore.



I'I'A.No. 907.2007

This ITA coaxing on for ORDERS on  day,
MANJUNATH J, delivered the following:--   

JUDGMENT

This appeal is by the rés}éfit;a,_ Qh”a1:11V'”1::;1§1§g Vihex 1 j 2

concurrent findings of the order

the Income Tax

245/ Bang] 2006 dataizx 10.’3.:’20b_? under of
Commissioner of Bangalore dated
17.1.2006 (A)-

VI the findings ofthe
Depu’i:y~ Tax dated 3o.3.2oos in

2. .. LA T116; bf ‘they are stated as hmeunden

.:’I”h.§: mfijiofidenti assesses: filed its annual return of

1 V the assessment year 19994000 on 31.12.1999

income of Rs.78,98,397/- under the regular

Pxrfiiifiiéns of Income Tax Act. The matter was taken up for

” V1 The assessment was finalized on 28.3.2002 under

Section 143(3) of the Inooxnc Tax Act and certain additions

were made under two heads namely, under valuation of

closing stock of Rs.39,3S,906/ – and excess 801-A dwuctioa

claim Rs.6.24.612I–. Accoxdinglv. the tax was computed

A

and the assesses was called upon to pay Rs.43,32,969/ -.

mi”

ITA.NO. 907.2007

3. On an appeal filed by the assessee the Commissioner

of Income Tax (Appeals), the Commissioner of

directed the Assessing Oficer to exclude two ite;;’1s- 5:’ (

the closing stock, as they were not in

circumstances, the Deputy C0113-;1niss:i0x3ei*_)) cf

invoking the Provisions of 27?_1(1)(e)—- the Tz«ix(“1′-‘:et’= L)

}ev1;ed’ the penalty of Rs.9,4’f;§30/-. Agai.n§’-stV'(‘~.ssi¢h the

assesses filed an income
Tax (Appeals), which allowed on the

ground that the _1-fie against the

ori§’n)a1″61dei*;ofA§%3ssss'”*m.V_:’e§1t seen allowed. In the light
of of ‘ assessee against the order of

assessme’t1t,((the) of Income Tax (Appeals) came

penaity cannot be levied under

‘ of the Act. Being aggrieved by the order

H ‘eyj:..’vCemm1’ssioner of Income Tax (Appeals), he

m§c;;u§((fi1e& an appeal, which appeal has been disnnssed” on

V gound thereby confirming the order passed by the

‘A’v.Cc)11im5.ssioner of Income Tax (Appeals). Being aggrieved by

” ” ‘These two orders, the present appeal is filed ra1sm’ ‘ g the

folloiwing substantial question of law:

‘Whether the appellate auflmfities were
correct in holding ihat the penalty levied cannot
be sustained as the quantum additions have

3″

O

ITZLNO. 907.208′?

_. 4 _.

been set aside by the Tribune! and which order
has been appealed begfore this cow! and is
awaiting disposal?’

4. Having heard the counsel for the

learned counsel for the appcfiant submits

matter is seized by this court on the “of _

assessment, the appeal may be

the appellant to initiate

of the Act provided the bf; ks; the ‘A

Iegular assessment “‘Wé sce some

force in thc arguments. ‘ VA ”

5. appcai is dismissed as
withdras Vk for the appellant to invoke the:

:271(1)(c) pmvided the appeal fried

on’:s.ji;he:,.A’ongnna1′ sfder of assessment in I’I’A.No.945/2006 is

#9.’?

Sci].

Judge

Sd/-

Judge

KV!l*