A Two-Judge Bench of the Supreme Court has dismissed a Special Leave Petition filed by the Income Tax Department against Apple India being inclined not to interfere with the impugned judgment and order passed by the High Court.
The Karnataka High Court had observed in the earlier case that, The AO had disallowed Rs.5,10,83,253/- being the provision for warranty.
It was also noted that, the Tribunal had held that the said issue was covered in the favour of assessee by various orders passed by the Tribunal in assessee’s own case for A.Y.s 2003-04, 2005-06, 2006-07, and 2007-08 and that for A.Y. 2003-04, the matter was taken to this Court aiso and ultimately assessee’s stand has been upheld.
It was further observed that the Assessment order based on the said direction by the DRP has been set-aside by a Tribunal order.
In short the questions before the Karnataka High Court were answered in favour of the assessee-Apple India and against the Revenue.
During the recent Supreme Court hearing, N Venkatraman, A.S.G., and Nisha Bagchi, representing the petitioner, argued for the case. However, the Court, after considering the submissions, chose not to interfere with the impugned judgment of the High Court, leading to the dismissal of the Special Leave Petition by the Income Tax Department.
In summary, the Supreme Court’s decision aligns with the Karnataka High Court’s earlier stance, favoring Apple India Pvt. Ltd. The questions raised in the High Court were answered in favor of the assessee, marking a crucial victory against the Revenue.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
