COMMISSIONER OF INCOME TAX, vs. M/S BHAGEERATHA ENGINEERING LTD.,

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ITA/279/2009HC KeralaKLHC01025040200905 July 2021Author: HONOURABLE MR.JUSTICE S.V.BHATTI,HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS4 pages

AI SummaryDismissed

What did the High Court hold?

The High Court held that the questions of law in ITA No. 279/2009 for the Assessment Year 1993-94 were to be answered in favour of the assessee and against the Revenue. This decision was based on the principle points of reference that had already been answered in favour of the assessee by the same Court in a separate judgment concerning ITR No. 264/1997 for the Assessment Year 1986-87. The Court noted that the issues of accounting standards and deferred payment arrangements were substantially covered by the prior decision. Furthermore, a few other questions raised by the Revenue were not pressed and were deemed not to arise for consideration in light of the Tribunal's findings of fact. The appeal was therefore dismissed.

What were the facts?

This appeal is filed by the Commissioner of Income Tax, Cochin, against the order of the Income Tax Appellate Tribunal (ITAT), Cochin Bench, for the Assessment Year 1993-94. The appeal was heard alongside ITR No. 264/1997 concerning the same assessee for the Assessment Year 1986-87. The parties agreed that the core issues in both matters revolved around the adoption of accounting standards and the treatment of deferred payment arrangements. The High Court noted that the questions of law in the present appeal substantially covered the principle points decided in the earlier ITR, where the decision was in favour of the assessee.

What were the issues?

1. Whether the questions of law in ITA No. 279/2009, concerning the Assessment Year 1993-94, are to be answered in favour of the assessee or the Revenue, considering the prior decision in ITR No. 264/1997 for AY 1986-87. (Question of law) Assessee's Contention: The assessee, through their counsel, implicitly supported the High Court's prior decision in ITR No. 264/1997, indicating that the principles decided therein would apply to the present appeal. The main questions in ITR No. 264/1997 were related to the adoption of accounting standards and the treatment of deferred payment arrangements. Revenue's Contention: The Revenue, through their counsel, acknowledged that the questions of law in the present appeal substantially covered the principle points of reference decided in ITR No. 264/1997. The Revenue did not press a few other questions, and the Court found that these did not arise for consideration based on the Tribunal's findings of fact.

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE S.V.BHATTI & THE HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS MONDAY, THE 5TH DAY OF JULY 2021 / 14TH ASHADHA, 1943 ITA NO. 279 OF 2009 AGAINST THE ORDER/JUDGMENT IN ITA 439/1999 OF I.T.A.TRIBUNAL,COCHIN BENCH, ERNAKULAM APPELLANT/S: COMMISSIONER OF INCOME TAX, COCHIN. BY ADVS. SRI.JOSE JOSEPH, SC, FOR INCOME TAX SRI.CHRISTOPHER ABRAHAM, INCOME TAX DEPARTMENT RESPONDENT/S: M/S BHAGEERATHA ENGINEERING LTD., 132, PANAMPILLY AVENUE, COCHIN-682 036. BY ADVS. SMT.P.ANITHA SMT.P.ANITHA SMT.R.S.GEETHA SRI.T.M.SREEDHARAN SR. SRI.V.B.UNNIRAJ OTHER PRESENT: SR ADV. T SREEDHARAN THIS INCOME TAX APPEAL HAVING COME UP FOR HEARING ON 05.07.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: I.T.A. No.279/2009 -2-

J U D G M E N T S.V. Bhatti, J. This appeal is at the instance of Commissioner of Income Tax, Cochin for the Assessment Year 1993-94. 2. The I.T.A. has been listed for hearing along with I.T.R. No.264/1997 of the same assessee for the year 1986-87. By a separate judgment I.T.R. No.264/1997 questions have been answered in favour of assessee. The learned Counsel appearing for the Department and the Assessee would state that the main question in I.T.R. No.264/1997 is adoption of accounting standards, treatment of deferred payment arrangement etc. The questions of law now referred in the I.T.A. substantially cover the answer given by this Court on principle points of reference in I.T.R. No.264/1997 as well.

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By referring to the answers given in I.T.R. No.264/1997, the applicable questions of law are answered in favour of the assessee and against the Revenue. A few other questions are not pressed and after perusing the record, we are of the view that these questions in fact having regard to the findings of fact recorded by the Tribunal do not arise for our consideration. The point is answered in favour of the assessee and against the Revenue. I.T.A. No.279/2009 is dismissed. Registry shall send the certified copy of this judgment to the Income Tax Appellate Tribunal. S.V.BHATTI JUDGE BECHU KURIAN THOMAS JUDGE jjj -4-

Appendix — schedule of exhibits

APPENDIX OF ITA 279/2009 PETITIONER ANNEXURE ANNEXURE A COPY OF ORIGINAL ASSESSMENT ORDER U/S.143(3) DATED 21/03/1996 ISSUED BY THE ASSESSING OFFICER FOR THE ASST. YEAR 1993-94. ANNEXURE B COPY OF THE ORDER DATED 01/07/1999 OF THE COMMISSIONER OF INCOME TAX (APPEALS). ANNEXURE C COPY OF THE ORDER DATED 30/06/2003 OF THE INCOME TAX APPELLATE TRIBUNAL IN ITA NO.439/COCH/99 AND ITA NO.444/OCH/99

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