Karnataka High Court The Commissioner Of IncomeTax vs Texas Instruments India Pvt Ltd on 21 April, 2021 I.T.A. NO.141 OF 2020 c/w I.T.A. NO.151 OF 2020 1 DATED THIS THE 21ST DAY OF APRIL, 2021 PRESENT THE HON'BLE MR. JUSTICE SATISH CHANDRA SHARMA AND THE HON'BLE MR. JUSTICE SURAJ GOVINDARAJ I.T.A. No.141 OF 2020 C/W I.T.A. No.151 OF 2020 IN I.T.A. NO.141 OF 2020 BETWEEN: 1. THE COMMISSIONER OF INCOMETAX LTU, 7TH FLOOR, BMTC BUILDING 80 FEET ROAD, KORAMANGALA BENGALURU560095 2. THE ADDL. COMMISSIONER OF INCOMETAX, LTU, 7TH FLOOR BMTC BUILDING, 80 FEET ROAD KORAMANGALA, BENGALURU560095 ... APPELLANTS (BY SRI. K.V. ARAVIND,ADVOCATEPH) AND: TEXAS INSTRUMENTS INDIA PVT. LTD., BAGMANE TECH PARK NO.66/3, ADJACENT TO LRDE BYRASANDRA, C.V.RAMAN NAGAR BENGALURU560093 ... RESPONDENT (BY SRI. PERCY PARDIWALLA, SR. COUNSEL FOR SRI. T. SURYANARAYANA, MS. TANMAYEE RAJKUMAR AND MS. MAHIMA GOUD, ADVOCATE OF M/S KING & PATRIDGEPH) I.T.A. NO.141 OF 2020 c/w I.T.A. NO.151 OF 2020 2 THIS APPEAL IS FILED UNDER SECTION 206A OF INCOME TAX ACT 1961, ARISING OUT OF ORDER DATED 06.03.2020 PASSED IN IT(TP)A NO.169/BANG/2014, FOR THE ASSESSMENT YEAR 20082009 PRAYING TO FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED ABOVE AND ALLOW THE APPEAL AND SET ASIDE THE ORDERS PASSED BY THE INCOME TAX APPELLATE TRIBUNAL, BENGALURU IN IT(TP)A NO.169/BANG/2014 DATED 06.03.2020 FOR ASSESSMENT YEAR 20082009 ANNEXUREC AND CONFIRM THE ORDER OF THE APPELLATE COMMISSIONER CONFIRMING THE ORDER PASSED BY THE ADDL. COMMISSIONER OF INCOME TAX, LTU, BENGALURU. ***** IN I.T.A. NO.151 OF 2020 BETWEEN: 1. THE COMMISSIONER OF INCOMETAX LTU, 7TH FLOOR, BMTC BUILDING 80 FEET ROAD, KORAMANGALA BENGALURU560095 2. THE JOINT COMMISSIONER OF INCOMETAX, LTU, 7TH FLOOR BMTC BUILDING, 80 FEET ROAD KORAMANGALA, BENGALURU560095 ... APPELLANTS (BY SRI. K.V. ARAVIND,ADVOCATEPH) AND: TEXAS INSTRUMENTS INDIA PVT. LTD., BAGMANE TECH PARK NO.66/3, ADJACENT TO LRDE BYRASANDRA, C.V.RAMAN NAGAR BENGALURU560093 ... RESPONDENT (BY SRI. PERCY PARDIWALLA, SR. COUNSEL FOR SRI. T. SURYANARAYANA, MS. TANMAYEE RAJKUMAR AND MS. MAHIMA GOUD, ADVOCATE OF M/S KING & PATRIDGEPH) I.T.A. NO.141 OF 2020 c/w I.T.A. NO.151 OF 2020 3 THIS APPEAL IS FILED UNDER SECTION 206A OF INCOME TAX ACT 1961, ARISING OUT OF ORDER DATED 06.03.2020 PASSED IN IT(TP)A NO.149/BANG/2014, FOR THE ASSESSMENT YEAR 20082009 PRAYING TO FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED ABOVE AND ALLOW THE APPEAL AND SET ASIDE THE ORDERS PASSED BY THE INCOME TAX APPELLATE TRIBUNAL, BENGALURU IN IT(TP)A NO.149/BANG/2014 DATED 06.03.2020 FOR ASSESSMENT YEAR 20082009 ANNEXUREC AND CONFIRM THE ORDER OF THE APPELLATE COMMISSIONER CONFIRM THE ORDER PASSED BY THE ADDL. COMMISSIONER OF INCOME TAX, LTU, BENGALURU. ***** THESE APPEALS COMING ON FOR HEARING AND HAVING BEEN RESERVED FOR ORDERS ON 05.03.2021, THIS DAY, SURAJ GOVINDARAJ J., PRONOUNCED THE FOLLOWING: JUDGMENT 1. The respondent is in the business of manufacture and export of computer software. It filed returns of income for the Assessment Year 200809 on 30.09.2008, declaring an income of Rs.98,03,41,570/ which was processed on 8.06.2011, determining the total income of the same amount. Returns were taken up for scrutiny after issuance of statutory notice under Section 143(2) on 14.09.2009. I.T.A. NO.141 OF 2020 c/w I.T.A. NO.151 OF 2020 4 2. The Assessee had claimed deduction of Rs.7,57,22,069/ under Section 80JJ(AA) of Income Tax Act for the Assessment Year 2008 2009 in respect of employment of new workmen for the said year. In terms thereof, the Assessee could claim a deduction of additional amounts paid to new regular workmen employed in the previous year on the workmen satisfying the definition under Section 2(s) of the Industrial Disputes Act, 1947. 3. The Assessee had also sought for deduction in computing