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

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ITA/281/2009HC KeralaKLHC01025042200917 March 2021Author: HONOURABLE MR.JUSTICE S.V.BHATTI,HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS10 pages
AI SummaryDismissed

What did the High Court hold?

The High Court of Kerala, comprising Justices S.V. Bhatti and Bechu Kurian Thomas, dismissed the appeals. The decision was based on the joint submission of the counsel for the parties. They stated that the valuation of the subject appeals was below the ceiling limit stipulated by a CBDT circular. Consequently, the court applied the dictum laid down by the Supreme Court in S.C. Naregal v. Commissioner of Income Tax, which deals with the effect of binding CBDT circulars. The court found this principle applicable to the appeals on hand, leading to their dismissal. No order as to costs was made. The specific grounds or merits of the appeals before the ITAT were not discussed or decided by the High Court.

What were the facts?

The Revenue, Commissioner of Income Tax, is the appellant in a batch of four appeals (ITA Nos. 281/2009, 1466/2009, 101/2010, and 188/2012) against orders of the Income Tax Appellate Tribunal (ITAT), Cochin Bench. The appeals pertain to assessment years 1993-1994, 1999-2000, 2001-2002, and 2003-2004. The respondent in all appeals is M/s. Bhageeratha Engineering Ltd. or M/s. Bhageeratha Electricals and Structurals Limited. The appeals were heard together by the High Court of Kerala. The counsel for both parties submitted that the valuation in these appeals is less than the limit prescribed by a CBDT circular.

What were the issues?

1. Whether the appeals, having a valuation below the limit stipulated by a CBDT circular, are maintainable, considering the Supreme Court's judgment in S.C. Naregal v. Commissioner of Income Tax. Assessee's Contention: The counsel for the parties jointly submitted that the valuation of the subject appeals is less than the ceiling limit stipulated by the CBDT Circular, and the dictum laid down by the Apex Court in S.C. Naregal v. Commissioner of Income Tax is applicable. Revenue's Contention: Not recorded.

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 WEDNESDAY, THE 17TH DAY OF MARCH 2021 / 26TH PHALGUNA, 1942 ITA.No.281 OF 2009 AGAINST THE ORDER IN ITA 444/1999 DATED 30-06-2003 OF I.T.A.TRIBUNAL,COCHIN BENCH APPELLANT: COMMISSIONER OF INCOME TAX, COCHIN. BY ADVS. JOSE JOSEPH, SC, FOR INCOME TAX CHRISTOPHER ABRAHAM, INCOME TAX DEPARTMENT RESPONDENT: M/S. BHAGEERATHA ENGINEERING LTD., 132, PANAMPILLY AVENUE, COCHIN-682 036. R1 BY ADV. SMT.P.ANITHA R1 BY ADV. SMT.R.S.GEETHA R1 BY ADV. SRI.T.M.SREEDHARAN SR. R1 BY ADV. SRI.V.B.UNNIRAJ THIS INCOME TAX APPEAL HAVING BEEN FINALLY HEARD ON 17.03.2021, ALONG WITH ITA.1466/2009, ITA.101/2010, ITA.188/2012, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE S.V.BHATTI & THE HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS WEDNESDAY, THE 17TH DAY OF MARCH 2021 / 26TH PHALGUNA, 1942 ITA.No.1466 OF 2009 AGAINST THE ORDER IN ITA 350/2006 DATED 25-04-2008 OF I.T.A.TRIBUNAL,COCHIN BENCH APPELLANT: THE COMMISSIONER OF INCOME TAX, COCHIN. BY ADVS. SRI.P.K.R.MENON,SR.COUNSEL, GOI(TAXES) JOSE JOSEPH, SC, FOR INCOME TAX CHRISTOPHER ABRAHAM, INCOME TAX DEPARTMENT RESPONDENT: M/S.BHAGEERATHA ELECTRICALS AND STRUCTURALS LIMITED, KOCHI. R1 BY ADV. SMT.P.ANITHA R1 BY ADV. SMT.R.S.GEETHA R1 BY ADV. SRI.T.M.SREEDHARAN SR. R1 BY ADV. SMT.K.SEEMA R1 BY ADV. SRI.V.B.UNNIRAJ THIS INCOME TAX APPEAL HAVING BEEN FINALLY HEARD ON 17.03.2021, ALONG WITH ITA.281/2009, ITA.101/2010, ITA.188/2012, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE S.V.BHATTI & THE HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS WEDNESDAY, THE 17TH DAY OF MARCH 2021 / 26TH PHALGUNA, 1942 ITA.No.101 OF 2010 AGAINST THE ORDER IN ITA 771/2005 DATED 24-08-2009 OF I.T.A.TRIBUNAL,COCHIN BENCH APPELLANT: THE COMMISSIONER OF INCOME TAX, COCHIN. BY ADVS. JOSE JOSEPH, SC, FOR INCOME TAX CHRISTOPHER ABRAHAM, INCOME TAX DEPARTMENT RESPONDENT: M/S BHAGEERATHA ENGINEERING LTD., BHAGEERATHA RESIDENCY, BANERJI ROAD,, KOCHI -18. R1 BY ADV. SMT.P.ANITHA R1 BY ADV. SMT.R.S.GEETHA R1 BY ADV. SRI.T.M.SREEDHARAN SR. R1 BY ADV. SRI.V.B.UNNIRAJ THIS INCOME TAX APPEAL HAVING BEEN FINALLY HEARD ON 17.03.2021, ALONG WITH ITA.281/2009, ITA.1466/2009, ITA.188/2012, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE S.V.BHATTI & THE HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS WEDNESDAY, THE 17TH DAY OF MARCH 2021 / 26TH PHALGUNA, 1942 ITA.No.188 OF 2012 AGAINST THE ORDER IN ITA 1277/2005 DATED 27-04-2012 OF I.T.A.TRIBUNAL,COCHIN BENCH APPELLANT: THE COMMISSIONER OF INCOME TAX-I, COCHIN COCHIN. BY ADVS. SRI.P.K.R.MENON,SR.COUNSEL, GOI(TAXES) JOSE JOSEPH, SC, FOR INCOME TAX CHRISTOPHER ABRAHAM, INCOME TAX DEPARTMENT RESPONDENT: M/S. BHAGEERATHA ENGINEERING LTD., VAZHAKKALA, KAKKANAD P.O. KOCHI-682030. R1 BY ADV. SMT.P.ANITHA R1 BY ADV. SMT.R.S.GEETHA R1 BY ADV. SRI.T.M.SREEDHARAN SR. R1 BY ADV. SRI.V.B.UNNIRAJ THIS INCOME TAX APPEAL HAVING BEEN FINALLY HEARD ON 17.03.2021, ALONG WITH ITA.281/2009, ITA.1466/2009, ITA.101/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ITA Nos.281/2009, 188/2012, 1466/2009 & 101/2010 -5-

J U D G M E N T [ ITA.281/2009, ITA.1466/2009, ITA.101/2010, ITA.188/2012 ] Dated this the 17th day of March 2021 S.V. Bhatti, J. The Revenue is the appellant in the batch of appeals. The details of the appeals are stated as follows: Sl. No. Assessment Year Tribunal Appeal No. ITA Nos. 1 1993-1994 444(Coch)/99 281/2009 2 1999-2000 1277/Coch/2005 & C.O.No.12/Coch/2006 188/2012 3 2001-2002 771/(Coch)/2005 101/2010 4 2003-2004 350/Coch/2006 1466/2009

2.

Heard learned Senior Standing Counsel Christopher Abraham and Senior Advocate T M Sreedharan.

3.

The value in the appeals is less than the limit -6- prescribed by CBDT circular. The Supreme Court in the judgment reported in S.C. Naregal v. Commissioner of Income Tax1 has considered the effect of binding nature of CBDT Circular.

4.

The counsel appearing for the parties state that the valuation of the subject appeals since is less than the ceiling limit stipulated by CBDT Circular, and the dictum laid down by the Apex Court is applicable to the appeals on hand. Having regard to the above submission, the appeals stand dismissed. No order as to costs. S.V.BHATTI JUDGE BECHU KURIAN THOMAS JUDGE jjj 1 (2019) 418 ITR 455 (SC)

-7-

Appendix — schedule of exhibits
APPENDIX OF ITA 281/2009 PETITIONER'S/S EXHIBITS: 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/COCH/99. ITA Nos.281/2009, 188/2012, 1466/2009 & 101/2010 -8- APPENDIX OF ITA 1466/2009 PETITIONER'S/S EXHIBITS: ANNEXURE A COPY OF ASSESSMENT ORDER DATED 12/01/2006 OF THE ASSESSMENT YEAR 2003-04. ANNEXURE B COPY OF ORDER DATED 24/02/2006 OF THE COMMISSIONER OF INCOME TAX (APPEALS). ANNEXURE C COPY OF THE ORDER DATED 25/04/2008 OF THE INCOME TAX APPELLATE TRIBUNAL, COCHIN BENCH IN ITA NO.350/COCH/2006. ITA Nos.281/2009, 188/2012, 1466/2009 & 101/2010 -9- APPENDIX OF ITA 101/2010 PETITIONER'S/S EXHIBITS: ANNEXURE A COPY OF ORDER U/S.143(3) DATED 05/02/2004 FOR THE ASSESSMENT YEAR 2001-02. ANNEXURE B COPY OF THE ORDER DATED 10/03/2005 OF THE COMMISSIONER OF INCOME TAX (APPEALS). ANNEXURE C COPY OF THE ORDER DATED 24/08/2009 OF THE INCOME TAX APPELLATE TRIBUNAL, COCHIN BENCH IN ITA NO. 771/COCH/2005. ITA Nos.281/2009, 188/2012, 1466/2009 & 101/2010 -10- APPENDIX OF ITA 188/2012 PETITIONER'S/S EXHIBITS: ANNEXURE A TRUE COPY OF THE ASSESSMENT ORDER DATED 21/12/2004. ANNEXURE B TRUE COPY OF THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) DATED 28/09/2005. ANNEXURE C TRUE COPIES OF THE ORDERS OF THE TWO MEMBERS OF THE TRIBUNAL. ANNEXURE D TRUE COPY OF THE ORDER OF THE THIRD MEMBER OF THE TRIBUNAL DATED 23/04/2012. ANNEXURE E TRUE COPY OF THE ORDER OF THE TRIBUNAL DATED 27/04/2012.

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