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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

DATED THIS THE 25^TH DAY OF JANUARY 2021

PRESENT

THE HON’BLE MR. JUSTICE ALOK ARADHE

AND

THE HON’BLE MR. JUSTICE NATARAJ RANGASWAMY

I.T.A. NO.186 OF 2016

C/W

I.T.A. NO.262 OF 2014

I.T.A. NO.186 OF 2016

BETWEEN:

1.

PR. COMMISSIONER OF INCOME TAX-III

CENTRAL REVENUE BUILDINGS

QUEENS ROAD

BANGALORE-560001.

2.

THE ASSISTANT COMMISSIONER OF INCOME TAX

CIRCLE-12(1), BANGALORE.

.... APPELLANTS

(BY MR. E.R. INDRAKUMAR, SR. COUNSEL FOR

MR. E.I. SANMATHI, ADV.,)

AND:

M/S. MENZIES AVIATION

BOBBA (B'LORE) PVT. LTD.,

PLOT NO.C-041, BANGALORE

INTERNATIONAL AIRPORT

DEVANAHALLI

BANGALORE-560300.

... RESPONDENT

(BY MR. A. SHANKAR, SR. COUNSEL FOR

MR. M. LAVA, ADV.,)

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- - -

THIS I.T.A. IS FILED UNDER SEC. 260-A OF INCOME TAX

ACT 1961, ARISING OUT OF ORDER DATED 05.10.2015 PASSED

IN M.P. NO.19/BANG/2014 IN ITA NO.1160/BANG/2012 FOR THE

ASSESSMENT

YEAR

2009-10,

PRAYING

TO

DECIDE

THE

FOREGOING

QUESTION

OF

LAW

AND/OR

SUCH

OTHER

QUESTIONS OF LAW AS MAY BE FORMULATED BY THE HON'BLE

COURT AS DEEMED FIT AND SET ASIDE THE COMMON APPEAL

ORDER DATED 05-10-2015 PASSED BY THE ITAT, 'B' BENCH,

BENGALURU, IN APPEAL PROCEEDINGS IN M.P. NO.19/BANG/2014

IN ITA NO.1160/BANG/2012 FOR ASSESSMENT YEAR 2009-10, AS

SOUGHT FOR IN THIS APPEAL AND TO GRANT SUCH OTHER

RELIEF AS DEEMED FIT, IN THE INTEREST OF JUSTICE.

I.T.A. NO.262 OF 2014

BETWEEN:

1.

COMMISSIONER OF INCOME TAX-III

CENTRAL REVENUE BUILDINGS

QUEENS ROAD

BANGALORE-560001.

2.

THE ASSISTANT COMMISSIONER OF INCOME TAX

CIRCLE-12(1), BANGALORE.

.... APPELLANTS

(BY MR. E.R. INDRAKUMAR, SR. COUNSEL FOR

MR. E.I. SANMATHI, ADV.,)

AND:

M/S. MENZIES AVIATION

BOBBA (B'LORE) PVT. LTD.,

PLOT NO.C-041, BANGALORE

INTERNATIONAL AIRPORT

DEVANAHALLI

BANGALORE-560300.

... RESPONDENT

(BY MR. A. SHANKAR, SR. COUNSEL FOR

MR. M. LAVA, ADV.,)

- - -

THIS I.T.A. IS FILED UNDER SEC. 260-A OF INCOME TAX

ACT 1961, ARISING OUT OF ORDER DATED 30.01.2014 PASSED

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IN ITA NO.1160/BANG/2012 FOR THE ASSESSMENT YEAR 2009-

10, PRAYING TO DECIDE THE FOREGOING QUESTION OF LAW

AND/OR SUCH OTHER QUESTIONS OF LAW AS MAY BE

FORMULATED BY THE HON'BLE COURT AS DEEMED FIT AND SET

ASIDE THE APPELLATE ORDER DATED 30-01-2014 PASSED BY THE

ITAT, 'B' BENCH, BENGALURU, IN APPEAL PROCEEDINGS NO. ITA

NO.1160/BANG/2012 FOR ASSESSMENT YEAR 2009-10.

THESE I.T.As. COMING ON FOR FINAL HEARING, THIS DAY,

ALOK ARADHE J., DELIVERED THE FOLLOWING:

COMMON JUDGMENT

These appeals under Section 260A have been filed by

the revenue against the order dated 05.10.2015 and

30.01.2014, respectively, passed by the Income Tax

Appellate Tribunal (hereinafter referred to as 'the Tribunal'

for short). Both the appeals pertain to the Assessment Year

2009-10. ITA No.186/2016 was admitted vide order dated

24.01.2018 on the following substantial questions of law:

"Whether,

on

the

facts

and

in

the

circumstances of the case, the Tribunal is

justified in law in holding that the cargo

handling contract entered into with BIAL by

assessee is with statutory body satisfying

condition set forth in section 80IA(4) when

BIAL is only a Company whose motive only

making profit and is only a instrument of

State?".

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Whereas, ITA No.162/2014 was admitted by the same

order on the following substantial questions of law:

"1. Whether, on the facts and in the

circumstances of the case, the Tribunal was

justified in law in holding that the assessee is

eligible for deduction under section 80IA(4)

despite holding that it has not entered into an

agreement with a "statutory body" as required

in the provisions of section 80IA(4)?

2. Whether,

on

the

facts

and

in

the

circumstances of the case, the Tribunal is

justified in law in holding that the cargo

handling on contract by the assessee is

equivalent to development, operation and

maintenance

of

infrastructure

facility

as

defined in s