M/S.HOTEL & ALLIED TRADES PVT. LTD vs. THE DEPUTY COMMISSIONER OF INCOME TAX

ITA/290/2013HC KeralaKLHC01026175201312 November 2014Author: HONOURABLE MR. JUSTICE ANIL K.NARENDRAN,HONOURABLE MR.JUSTICE ANTONY DOMINIC4 pages
AI SummaryDismissed

What were the facts?

The assessee, M/s. Hotel & Allied Trades Pvt. Ltd., filed an appeal before the High Court of Kerala challenging an order passed by the Income Tax Appellate Tribunal (ITAT) in ITA No. 657/Coch/2010. The appeal concerned assessment orders and appellate orders related to the company's income tax. The procedural history involves an assessment order dated November 26, 2009, an order by the Commissioner of Income Tax (Appeals) dated September 15, 2010, and the impugned order by the ITAT dated October 26, 2012. The appeal raises two specific questions of law for the High Court's consideration.

What did the High Court hold?

The High Court addressed the two questions of law raised by the assessee. For the first question concerning depreciation on leasehold buildings, the Court held that this issue had already been answered against the appellant by a previous judgment of the High Court in the case of Costal Resorts India Ltd. v. Assistant Commissioner of Income Tax [(2014) 363 ITR 482]. Regarding the second question concerning dividend income and Rule 8D, the Court noted that the Tribunal's order indicated that this issue had been remitted back to the Assessing Officer for fresh consideration. Therefore, this question did not require consideration by the High Court. The appeal was dismissed.

What were the issues?

The High Court was asked to decide two questions of law: 1. Whether, in the facts and circumstances, the Tribunal was justified in reversing the Commissioner of Income Tax (Appeals)' decision allowing the appellant's claim for depreciation on the written down value of buildings in leasehold premises amounting to Rs. 73,71,453/-, in view of the decision in 293 ITR 432. - Assessee's contention: The assessee argued for the allowance of depreciation on the written down value of buildings in leasehold premises. - Revenue's contention: Not recorded in the judgment. 2. Whether, in the facts and circumstances, the Tribunal was justified in reversing the Commissioner of Income Tax (Appeals)' decision deleting the dividend income of the company from associated companies by invoking Rule 8D. - Assessee's contention: The assessee argued for the deletion of dividend income from associated companies. - Revenue's contention: Not recorded in the judgment.

Which sections of the Income-tax Act were involved?

Rule 8D

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR.JUSTICE ANTONY DOMINIC & THE HONOURABLE MR. JUSTICE ANIL K.NARENDRAN WEDNE AY, THE 12TH DAY OF NOVEMBER 2014/21ST KARTHIKA, 1936 ITA.No. 290 of 2013 () ----------------------- AGAINST THE ORDER IN ITA 657/COCH/2010 of I.T.A.TRIBUNAL, COCHIN BENCH DATED 25-10-2012 APPELLANT(S)/RESPONDENT/APPELLANT: ------------------------------------------------------------------ M/S.HOTEL & ALLIED TRADES PVT. LTD C/O.CASINO HOTEL, W/ISLAND, COCHIN-3. BY ADVS.SRI.JOSEPH MARKOSE (SR.) SRI.V.ABRAHAM MARKOS SRI.BINU MATHEW SRI.TOM THOMAS (KAKKUZHIYIL) SRI.ABRAHAM JOSEPH MARKOS SRI.ABRAHAM VARGHESE THARAKAN RESPONDENT(S)/APPELLANT: ------------------------------------------------ THE DEPUTY COMMISSIONER OF INCOME TAX CIRCLE (II), ERNAKULAM. R BY SRI.JOSE JOSEPH, SC, FOR INCOME TAX THIS INCOME TAX APPEAL HAVING COME UP FOR ADMISSION ON 12-11-2014, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

APPENDIX IN ITA.290/13 APPELLANT'S EXHIBITS: ANNEXURE A: AOF THE ASSESSMENT ORDER DATED 26.11.2009. ANNEXURE B: A

The order continues below.

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