IN THE HIGH COURT OF KARNATAKA AT BENGALURU

DATED THIS THE 5^TH DAY OF OCTOBER, 2021

PRESENT

THE HON’BLE MRS.JUSTICE S.SUJATHA

AND

THE HON’BLE MR. JUSTICE RAVI V. HOSMANI

I.T.A.No.164/2017 C/w.

I.T.A.No.166/2017

IN ITA NO.164/2017:

BETWEEN :

M/S SOBHA INTERIORS (P) LTD

E-106, SUNRISE CHAMBERS, 322,

ULSOOR ROAD, BANGALORE - 560 022.

PAN: AAECS62751560022.

...APPELLANT

(BY SRI ANNAMALAI, ADV. FOR SRI M.LAVA, ADV.)

AND :

1.

THE DEPUTY COMMISSIONER OF INCOME TAX

CIRCLE - 12(3)

PRESENTLY CIRCLE- 6(1)(2)

BMTC BUILDING, 80 FEET ROAD, KORAMANAGALA

BANGALORE - 560 095.

2.

THE INCOME TAX OFFICER

WARD - 12(2)

PRESENTLY WARD - 6(1)(1)

BMTC BUILDING, 80 FEET ROAD,

KORAMANGALA,

BANGALORE - 560 095.

…RESPONDENTS

(BY SRI M.DILIP, ADV. FOR SRI K.V.ARAVIND, ADV.)

- 2 -

THIS INCOME TAX APPEAL IS FILED UNDER SECTION

260-A OF INCOME TAX ACT 1961, ARISING OUT OF ORDER

DATED

23/11/2016

PASSED

IN

ITA

NO.1607

&

1692/BANG/2012, FOR THE ASSESSMENT YEAR 2007-08 &

2009-10, PRAYING TO A) TO FORMULATE THE SUBSTANTIAL

QUESTION OF LAW AS STATED ABOVE AND THE ANSWER THE

SAME IN FAVOUR OF THE APPELLANT. B) TO ALLOW THE

APPEAL AND SET ASIDE THE FINDINGS TO THE EXTENT

WHICH IS AGAINST THE APPELLANT IN THE COMMON ORDER

PASSED BY THE ITAT IN ITA NOS. 1607 & 1692/BANG/2012

DATED23/11/2016 FOR THE ASSESSMENT YEARS 2007-08 &

2009-10. C) TO PASS SUCH OTHER ORDERS, AS THIS HON'BLE

COURT DEEMS FIT AND PROPER TO MEET THE ENDS OF

JUSTICE.

IN ITA NO.166/2017:

BETWEEN :

M/S SOBHA GLAZING & METAL WORKS (P) LTD.,

NO.10, BOMMASANDRA JIGANI LINK ROAD,

ANEKAL TALUK, BOMMASANDRA INDL. AREA

BANGALORE - 562 158.

PAN: AAACR8801M.

...APPELLANT

(BY SRI ANNAMALAI, ADV. FOR SRI M.LAVA, ADV.)

AND :

THE DEPUTY COMMISSIONER OF INCOME TAX

CIRCLE-12(3)

PRESENTLY CIRCLE - 6(1)(2)

BMTC BUILDING, 80 FEET ROAD,

KORAMANGALA

BANGALORE - 560 095.

…RESPONDENT

(BY SRI M.DILIP, ADV. FOR SRI K.V.ARAVIND, ADV.)

THIS INCOME TAX APPEAL IS FILED UNDER SECTION

260-A OF INCOME TAX ACT 1961, ARISING OUT OF ORDER

23/11/2016 PASSED IN ITA NO.1630/BANG/2012, FOR THE

ASSESSMENT YEAR 2007-2008 PRAYING TO A) TO FORMULATE

THE SUBSTANTIAL QUESTION OF LAW AS STATED ABOVE AND

THE ANSWER THE SAME IN FAVOUR OF THE APPELLANT. B) TO

ALLOW THE APPEAL AND SET ASIDE THE FINDINGS TO THE

- 3 -

EXTENT WHICH IS AGAINST THE APPELLANT IN THE COMMON

ORDER PASSED BY THE ITAT IN ITA N.1630/BANG/2012

DATED23/11/2016 FOR THE ASSESSMENT YEAR 2007-08. C)

TO PASS SUCH OTHER ORDERS, AS THIS HON'BLE COURT

DEEMS FIT AND PROPER TO MEET THE ENDS OF JUSTICE.

THESE APPEALS COMING ON FOR ORDERS, THIS DAY,

S. SUJATHA, J., DELIVERED THE FOLLOWING:

J U D G M E N T

Since common and akin issues are involved in

these matters, they are taken up together and disposed

of by this common judgment.

2.

These appeals are filed under Section 260A

of the Income Tax Act, 1961 ['Act' for short] assailing the

common order dated 23.11.2016 passed by the Income

Tax Appellate Tribunal “A” Bench, Bangalore ['Tribunal'

for short] in ITA Nos.1607 and 1692/Bang/2012

relating to the assessment years 2007-08 and 2009-10

by the assessee M/s. Sobha Interiors [P] Ltd., and ITA

No.1630/Bang/2012 relating to the assessment year

2007-08 by the assessee M/s. Sobha Glazing & Metal

Works [P] Ltd.

- 4 -

3.

The appeals were admitted by this Court to

consider the following substantial questions of law:

IN ITA No.164/2017:

1.

Whether the Tribunal is justified in law in

holding that the annual value to be adopted

at Rs.54,88,798/- being Rs.7/- per square

feet without appreciating the various factors

and consequently passed a perverse order on

the facts and circumstances of the case?

2.

Without prejudice whether the Tribunal was

justified in law in not holding that for the

purposes of computing annual value u