THE COMMISSIONER OF INCOME TAX, vs. M/S.KAMADHENU MILK PRODUCTS

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ITA/39/2011HC KeralaKLHC01026387201119 December 2018Bench: HONOURABLE MR.JUSTICE K.VINOD CHANDRAN,HONOURABLE MR. JUSTICE ASHOK MENON3 pages
AI SummaryAllowed

What did the High Court hold?

The High Court held that the connected appeals arising from the common order of the ITAT for the block period from April 1, 1994, to October 4, 2001, were disposed of by this Court in ITA No. 18/2010 and connected cases. The Court was informed that the Special Leave to Appeal against that judgment was dismissed. In light of this, the High Court decided to answer the questions of law raised in the present appeal in favour of the Revenue and against the assessee. Consequently, the order of the Tribunal was set aside. The principle established is that when identical issues have been decided by a higher court and the Special Leave to Appeal has been dismissed, subsequent appeals raising the same issues will be decided based on that precedent.

What were the facts?

This Income Tax Appeal (ITA) No. 39 of 2011 was filed by the Commissioner of Income Tax, Cochin, against an order of the Income Tax Appellate Tribunal (ITAT), Cochin Bench, dated August 26, 2010. The appeal concerns a block period from April 1, 1994, to October 4, 2001. The High Court noted that connected appeals arising from a common order of the ITAT for the same block period had been disposed of by a previous judgment of the High Court in ITA No. 18/2010 and connected cases. The Court was also informed that a Special Leave to Appeal against that judgment was dismissed by the Supreme Court. The present appeal raises the very same issues as the previously decided appeals.

What were the issues?

1. Whether the High Court should decide the questions of law raised in the appeal, given that similar issues arising from a common order of the ITAT for the same block period have already been decided by this Court in ITA No. 18/2010 and connected cases, and the Special Leave to Appeal against that judgment was dismissed. (Question of law) Assessee's Contention: The judgment does not record any specific contentions made by the assessee in this particular appeal. The Court's decision appears to be based on the precedent set by the earlier judgment. Revenue's Contention: The Revenue argued that the very same issues arise in this appeal as in the previously decided appeals, and therefore, the decision in those appeals should be applied. The Revenue also implicitly relied on the dismissal of the Special Leave to Appeal by the Supreme Court as further affirmation of the earlier High Court judgment.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE K.VINOD CHANDRAN & THE HONOURABLE MR. JUSTICE ASHOK MENON WEDNESDAY,THE 19TH DAY OF DECEMBER 2018 / 28TH AGRAHAYANA, 1940 ITA.No. 39 of 2011 AGAINST THE ORDER/JUDGMENT IN ITA 34/COCH/2006 of I.T.A.TRIBUNAL,COCHIN BENCH DATED 26-08-2010 APPELLANT/S: THE COMMISSIONER OF INCOME TAX, COCHIN BY ADV. SRI.PKR MENON, SR.COUNSEL, GOI (TAXES) SRI.JOSE JOSEPH, SC, FOR INCOME TAX RESPONDENT/S: M/S.KAMADHENU MILK PRODUCTS WARRIAM ROAD, COCHIN - 16. THIS INCOME TAX APPEAL HAVING BEEN FINALLY HEARD ON 19.12.2018, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

K.VINOD CHANDRAN & ASHOK MENON, JJ. ------------------------------------------- ITA No.39 of 2011 ------------------------------------------- Dated this the 19th day of December, 2018 J U D G M E N T Vinod Chandran, J. We find that the connected appeals that arose from the common order of the Income Tax Appellate Tribunal with respect to the block period from 01.04.1994 to 04.10.2001, were disposed of by this Court as per judgment in ITA No.18/2010 and connected cases [CIT v. Kamadhenu Milk Products & Another], reported in (2012) 71 DTR (Ker) 91. The very same issues arise herein also. We also are informed that Special Leave to Appeal (Civil)---/2013 (CC 22610/2012) against the judgment and order in ITA No.18/2010 and RP No.501/2012 in ITA No.18/2010 was dismissed. In such circumstances, we answer the questions of law raised in favour of the Revenue and against the assessee. The order of the Tribunal is, hence, set aside. The Income Tax Appeal is allowed. Sd/- K.VINOD CHANDRAN JUDGE Sd/- ASHOK MENON JUDGE

WA1939/18 -3- APPENDIX APPELLANT'S EXHIBITS: ANNEXURE-A TRUE COPY OF THE ASSESSMENT ORDER DATED 26/9/2005. ANNEXURE-B TRUE COPY OF THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) DATED 1/2/2006. ANNEXURE-C TRUE COPY OF THE ORDER OF THE TRIBUNAL DATED 26/8/2010 ANNEXURE-D TRUE COPY OF THE AGREEMENT DATED 23/5/2000. ANNEXURE-E COPY OF JUDGMENT IN ITA NO. 14/2008 [True Copy] jg

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