THE COMMISSIONER OF INCOME TAX vs. M/S.APPOLO TYRES LTD.,

PDF · subscribers
ITA/111/2015HC KeralaKLHC01025512201530 July 2021Bench: HONOURABLE MR.JUSTICE S.V.BHATTI,HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS4 pages
AI SummaryDismissed

What did the High Court hold?

The High Court, by following the reasoning and conclusion recorded in its previous judgments in ITA Nos. 69 and 70 of 2011 concerning similar questions for Assessment Year 2002-03, answered the substantial questions of law in favour of the assessee and against the Revenue. The Court found that the DG Power Generation Units 1 and II were indeed eligible for the benefit of Section 80-IA. The ratio decidendi is that if the Court has already decided similar issues in prior appeals, it will apply the same reasoning to subsequent appeals with identical questions. The appeal filed by the Revenue was dismissed.

What were the facts?

The Commissioner of Income Tax (Revenue) is the appellant, and M/s. Apollo Tyres Ltd. (Assessee) is the respondent. The appeal is filed by the Revenue against an order of the Income Tax Appellate Tribunal, Cochin Bench, dated September 5, 2014. The assessment year in question is 2008-09. The dispute concerns whether DG Power Generation Units 1 and II constitute an 'undertaking' eligible for the benefit of Section 80-IA of the Income Tax Act. The High Court noted that the questions raised are similar to those in previous appeals (ITA Nos. 69/2011 and 70/2011) for Assessment Year 2002-03, which were dismissed on February 27, 2019.

What were the issues?

The Tribunal had to decide the following substantial questions of law: 1. Whether, on the facts and in the circumstances of the case, the Tribunal is right in law and fact in holding that DG Power Generation Units 1 and II constituted an 'undertaking' under Section 80-IA of the Income Tax Act? 2. Whether DG Power Generation Units 1 and II are entitled to the benefit of Section 80-IA of the Income Tax Act? The Revenue contended that the Tribunal erred in its findings regarding these questions. The Assessee argued in favour of the Tribunal's decision. The judgment does not explicitly detail the specific arguments or precedents cited by either party for this particular appeal, but it refers to the reasoning and conclusion of this Court in previous, similar appeals.

Which sections of the Income-tax Act were involved?

Section 80-IA

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE S.V.BHATTI & THE HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS FRIDAY, THE 30TH DAY OF JULY 2021 / 8TH SRAVANA, 1943 ITA NO. 111 OF 2015 AGAINST THE ORDER IN I T(TP)A NO. 4/2013 OF I.T.A.TRIBUNAL,COCHIN BENCH, ERNAKULAM APPELLANT/S: THE COMMISSIONER OF INCOME TAX, COCHIN BY ADVS. SRI.P.K.R.MENON,SR.COUNSEL, GOI(TAXES) SRI.JOSE JOSEPH, SC, FOR INCOME TAX CHRISTOPHER ABRAHAM, INCOME TAX DEPARTMENT RESPONDENT/S: M/S.APOLLO TYRES LTD., 6TH FLOOR, CHERUPUZHPAM BUILDING, SHANMUGHAM ROAD, KOCHI-682031. THIS INCOME TAX APPEAL HAVING COME UP FOR HEARING ON 30.07.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

I.T.A. No.111/2015 -2- J U D G M E N T S.V.Bhatti, J. Heard learned Standing Counsel Mr. Christopher Abraham and learned Senior Counsel Mr. Joseph Markos for parties. 2. The Commissioner of Income Tax/Revenue is the appellant. M/s.Apollo Tyres Ltd., Kochi/Assessee is the respondent. The subject appeal is at the instance of Revenue from the order of Income Tax Appellate Tribunal (for short ‘the Tribunal'), Cochin Bench in IT(TP)A No.04/Coch/2013 dated 05.09.2014. The appeal deals with the Assessment Year 2008-09. The following substantial questions of law are stated for consideration in this appeal: “1. Whether, on the facts and in the circumstances of the case the Tribunal is right in law and fact in holding that DG Power Generation Units 1 and II constituted an "undertaking" under Sec. 80 IA of the Income tax Act? 2. Whether DG Power Generation units 1 and II are entitled to the benefit of Sec. 80 1A of the Income tax Act?

I.T.A. No.111/2015 -3- 3. The questions raised in this appeal are similar to the questions raised by the Revenue in ITA No. 69/2011 and ITA No.70/2011 for the Assessment Year 2002-03. On 27.02.2019 the appeals filed by the Revenue were dismissed. Our attention has been drawn to the reasoning and conclusion recorded by this Court on similar questions framed in ITA Nos.69 and 70 of 2011. By following the reasoning and conclusion recorded in ITA Nos.69 and 70/2011, the substantial questions of law raised are answered in favour of the assessee and against the Revenue. The appeal is dismissed. No order as to costs. Sd/- S.V.BHATTI JUDGE Sd/- BECHU KURIAN THOMAS JUDGE jjj

I.T.A. No.111/2015 -4- APPENDIX OF ITA 111/2015 PETITIONER ANNEXURE ANNEXURE A COPY OF THE ASSESSMENT ORDER U/S.143(3) DATED 17/12/2012 PASSED BY THE ASSESSING OFFICER FOR AY 2008-09. ANNEXURE B COPY OF THE ITAT'S ORDER IT(TP)A 04/COCH/2013 DATED 05/09/2017 FOR ASSESSMENT YEAR 2008-09.

More judgments on Section 80-IA

All 612 judgments and leading authorities on Section 80-IA →

Recent GST High Court judgments

Search GST case law →