COMMISSIONER OF INCOME-TAX, TRIVANDRUM vs. M/S. KERALA STATE INDUSTRIAL ENTERPRISE.

ITA/201/2009HC KeralaKLHC01024962200924 May 2016Bench: HONOURABLE MR.JUSTICE ANTONY DOMINIC3 pages

AI SummaryDismissed

What did the High Court hold?

The High Court of Kerala, in its judgment dated May 24, 2016, dismissed the appeal filed by the Revenue. The Court noted that the issue of whether the assessee company is liable for interest tax had already been decided by this Court in a common judgment in ITA.Nos.304/02 and 311/02 dated August 9, 2011. Following this precedent, the High Court answered the question in favour of the assessee. Therefore, the order of the ITAT, which dismissed the Revenue's appeal, was upheld. The operative direction was the dismissal of the appeal. No issue was expressly left undecided.

What were the facts?

The Revenue, Commissioner of Income Tax, Thiruvananthapuram, filed this appeal before the High Court of Kerala challenging an order passed by the Income Tax Appellate Tribunal (ITAT), Cochin Bench. The ITAT's order, dated March 5, 2004, had dismissed the Revenue's appeal against an order of the Commissioner of Income Tax (Appeals). The CIT(A) had previously upheld a decision of the Assessing Officer. The core dispute concerns whether the assessee company, M/s. Kerala State Industrial Enterprises Ltd., Trivandrum, is liable for interest tax. This issue had been decided in favour of the assessee by the lower authorities.

What were the issues?

1. Whether the assessee company, M/s. Kerala State Industrial Enterprises Ltd., Trivandrum, is liable for the levy of interest tax for the assessment year(s) in dispute? (Question of law) Assessee's Contention: The assessee contended that they are not liable for interest tax. This position was upheld by the Commissioner of Income Tax (Appeals) and the ITAT. Revenue's Contention: The Revenue argued that the assessee company is liable for interest tax. This argument was rejected by the ITAT, leading to the present appeal.

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 DAMA SESHADRI NAIDU TUESDAY, THE 24TH DAY OF MAY 2016/3RD JYAISHTA, 1938 ITA.No. 201 of 2009 ( ) ------------------------ AGAINST THE ORDER/JUDGMENT IN ITA 2/COCH/2002 of I.T.A.TRIBUNAL,COCHIN BENCH DATED 05-03-2004 APPELLANT(S)/APPELLANT: -------------------------------- COMMISSIONER OF INCOME TAX, THIRUVANANTHAPURAM.

BY ADV. SRI.JOSE JOSEPH, SC, FOR INCOME TAX RESPONDENT(S)/RESPONDENT: ------------------------- M/S.KERALA STATE INDUSTRIAL ENTERPRISES LTD. TRIVANDRUM.

THIS INCOME TAX APPEAL HAVING BEEN FINALLY HEARD ON 24-05-2016, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

APPENDIX IN ITA.201/09 APPELLANT'S EXHIBITS: ANNEXURE A: TRUE COPY OF THE ORDER OF the ASSESSING OFFICER DATED 23.1.2001. ANNEXURE B: TRUE COPY OF THE ORDER OF the COMMISSIONER OF INCOME TAX (APPEALS) DATED 12.11.2001. ANNEXURE C: TRUE COPY OF the ORDER OF THE APPELLATE TRIBUNAL DATED 5.3.2004. /TRUE COPY/ PS TO JUDGE

ANTONY DOMINIC & DAMA SESHADRI NAIDU, JJ. ----------------------------------- I.T.A.No.201 of 2009 ----------------------------------- Dated this the 24th day of May, 2016 JUDGMENT Antony Dominic, J. This appeal is filed by the Revenue challenging the order passed by the Income Tax Appellate Tribunal, Cochin Bench in ITA.No.2/02, dismissing the appeal filed by the Revenue calling in question Annexure B order passed by the Commissioner of Income Tax (Appeals). The basic question raised in the appeal is whether the assessee company is liable to be assessed for the levy of interest tax or not. This question was decided earlier in favour of the assessee. We find that this Court has decided the issue in the common judgment in ITA.Nos.304/02 and 311/02 dated 9.8.2011. In such circumstances, answering the question in favour of the assessee, this appeal is dismissed. Sd/- ANTONY DOMINIC, Judge. Sd/- DAMA SESHADRI NAIDU, Judge. kkb.

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