2020 (6) TMI 701 - HC - Income Tax

Computation of deduction u/s 10A - re-allocation of common expenses between 10A and non 10A units made by the assessing officer based on the order of the tribunal dated 18.11.2005 in the assessee's case for the Assessment year 1999-2000 - HELD THAT - The aforesaid question of law has already been answered by a Bench of this Court in 2013 (11) TMI 1766 - KARNATAKA HIGH COURT . It is further pointed out that the decision passed by the Tribunal has been affirmed by a Bench of this Court in the aforesaid decision. - Decided in favour of assessee.

Summary

Issues:
Appeal under Section 260-A of the Income Tax Act, 1961 regarding the re-allocation of common expenses between 10A and non-10A units for Assessment year 2006-07.

Analysis:

The appeal before the Karnataka High Court pertained to the re-allocation of common expenses between 10A and non-10A units for the Assessment year 2006-07 under the Income Tax Act, 1961. The substantial question of law raised was whether the tribunal was justified in giving relief to the assessee based on a previous order for the Assessment year 1999-2000, which was not accepted by the revenue and was challenged before the High Court.

The learned counsel for the revenue acknowledged that the question of law had already been addressed by a Bench of the Court in a previous decision dated 05.11.2013. It was noted that the decision of the Tribunal had been upheld by the Court in the earlier case. Consequently, based on the reasons provided in the previous order, the substantial question of law in the current appeal was resolved against the revenue and in favor of the assessee.

As a result of the above analysis and the previous decision, the Karnataka High Court dismissed the appeal filed by the revenue, thereby upholding the relief granted to the assessee regarding the re-allocation of common expenses between 10A and non-10A units for the Assessment year 2006-07.