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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.1064 OF 2017

BETWEEN:

1.

PR. COMMISSIONER OF INCOME TAX-4

5TH FLOOR, BMTC BUILDING

KORAMANGALA, BANGALORE.

2.

THE DEPUTY COMMISSIONER OF INCOME TAX

CIRCLE-4(1)(2), 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

PAN: AAECM 6862D.

... 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 12.07.2017 PASSED

IN ITA NO.1000/BANG/2016 FOR THE ASSESSMENT YEAR 2011-

12, PRAYING TO DECIDE THE FOREGOING QUESTION OF LAW

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AND/OR SUCH OTHER QUESTIONS OF LAW AS MAY BE

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

ASIDE THE COMMON APPELLATE ORDER DATED 12-07-2017

PASSED BY THE ITAT, 'C' BENCH, BENGALURU, IN APPEAL

PROCEEDINGS NO ITA NO.1000/BANG/2016 FOR ASSESSMENT

YEAR 2011-12, AS SOUGHT FOR IN THIS APPEAL AND TO GRANT

SUCH OTHER RELIEF AS DEEMED FIT, IN THE INTEREST OF

JUSTICE.

THIS I.T.A. COMING ON FOR FINAL HEARING, THIS DAY,

ALOK ARADHE J., DELIVERED THE FOLLOWING:

JUDGMENT

This appeal under Section 260-A of the Income Tax

Act, 1961 (hereinafter referred to as ‘the Act’, for short) has

been filed by the revenue. The subject matter of the appeal

pertains to the Assessment Year 2011-12. The appeal was

admitted by a Bench of this Court vide order dated

17.12.2018 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 BIAL is a

statutory body when it cannot be considered

as it is a corporate body in which KSIIDC is

holding a mere 13% share in BIAL registered

under Companies Act and it falls to satisfy the

requirements of Section 40IA(4) of the

I.T.Act?

2.

Whether,

on

the

facts

and

in

the

circumstances of the case, the Tribunal is

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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?".

2. For the reasons assigned by us in ITA No.186/2016

c/w ITA No.262/2014, the substantial questions of law

framed in this appeal are answered against the revenue and

in favour of the assessee.

In the result, the appeal fails and is hereby dismissed.

Sd/-

JUDGE

Sd/-

JUDGE

RV