THE COMMISSIONER OF INCOME TAX, CALICUT vs. M/S. SOUTH MALABAR GRAMIN BANK, MALAPURM

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ITA/473/2009HC KeralaKLHC01025234200904 December 2018Bench: HONOURABLE MR.JUSTICE K.VINOD CHANDRAN,HONOURABLE MR. JUSTICE ASHOK MENON4 pages
AI SummaryDismissed

What did the High Court hold?

The High Court, following its previous judgments in the assessee's own cases (ITA No. 415/2009 and ITA No. 460/2009), decided the questions in favor of the assessee and against the Revenue. The reasoning is that the present appeal raises identical questions of law that have already been adjudicated upon by the High Court. Therefore, the principle of precedent dictates that the same outcome should apply. The High Court did not provide a fresh analysis of the facts or the law but relied on the prior decisions. The operative direction was to reject the appeal, effectively upholding the ITAT's order which presumably allowed the deductions claimed by the assessee. No issue was expressly left undecided.

What were the facts?

This appeal was filed by the Commissioner of Income Tax, Calicut (the Revenue) against an order of the Income Tax Appellate Tribunal (ITAT), Cochin Bench, dated September 26, 2005. The assessee is M/s. South Malabar Gramin Bank. The assessment year(s) are not explicitly stated in the provided text. The appeal concerns the deductibility of certain income under Section 80P(2)(a)(i) of the Income Tax Act, 1961. The procedural history indicates that the High Court is reviewing the ITAT's decision.

What were the issues?

The Tribunal had to decide the following questions of law: 1. Whether the profit from the sale of land is entitled to deduction under Section 80P(2)(a)(i) of the Income Tax Act, and if it has any relation with the business of banking to claim such deduction. 2. Whether the income from non-SLR investment and miscellaneous income are entitled to the benefit of deduction under Section 80P(2)(a)(i) of the Income Tax Act. The Revenue argued that these questions should be answered against them. The Assessee's contentions are not explicitly recorded, but the Revenue's submission implies that the ITAT's decision favored the assessee on these points. The Revenue relied on the fact that similar questions concerning the same assessee were decided against the Revenue in previous judgments by the High Court: Commissioner of Income Tax v. M/s South Malabar Gramin Bank (ITA No. 415/2009 decided on 20.07.2009) and Commissioner of Income Tax v. M/s South Malabar Gramin Bank (ITA No. 460/2009 decided on 07.09.2009).

Which sections of the Income-tax Act were involved?

Section 80P(2)(a)(i)

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 TUESDAY ,THE 04TH DAY OF DECEMBER 2018 / 13TH AGRAHAYANA, 1940 ITA.No. 473 of 2009 AGAINST THE ORDER/JUDGMENT IN ITA 95/2002 of I.T.A.TRIBUNAL,COCHIN BENCH DATED 26-09-2005 APPELLANT/S: THE COMMISSIONER OF INCOME TAX, CALICUT CALICUT. BY ADVS. SRI.P.K.R.MENON,SENIOR COUNSEL, GOI(TAXES) SRI.JOSE JOSEPH SC FOR INCOME TAX RESPONDENT/S: M/S. SOUTH MALABAR GRAMIN BANK, MALAPURM MALAPPURAM. BY ADVS. SRI.MOHAN PULIKKAL SRI.P.P.NARAYANAN OTHER PRESENT: THIS INCOME TAX APPEAL HAVING BEEN FINALLY HEARD ON 04.12.2018, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

ITA 473/2009 2 JUDGMENT Vinod Chandran, J. The following are the questions of law raised in the appeal: “1. Whether, on the facts and in the circumstances of the case i) the profit from sale of land is entitled to deduction under section 80P(2)(a)(i) of the I.T.Act ? ii) does the profit from sale of land have any relation with the business of banking to claim deduction under Section 80P(2)(a)(i) of the I.T.Act ? 2. Whether, on the facts and in the circumstances of the case: i) the income from non SLR investment is entitled to deduction under Sec.80P(2)(a) (i) of the I.T.Act ? ii) the miscellaneous income enumerated in the ground D are entitled to the benefit of Section 80P(2)(a)(i) of the I.T.Act ?” It is submitted by the learned Senior Counsel for Government of India (Taxes) that the questions are answered against the Revenue by judgment dated 20.07.2009 in I.T.A.No.415/2009 & connected cases (Commissioner of Income Tax v. M/s South Malabar Gramin Bank) and judgment dated

ITA 473/2009 3 07.09.2009 in I.T.A.No.460/2009 (Commissioner of Income Tax v. M/s South Malabar Gramin Bank), in the very same assessee's case. Hence, following the aforesaid decisions, the appeal is rejected answering the questions in favour of the assessee and against the Revenue. Sd/- K.VINOD CHANDRAN JUDGE Sd/- ASHOK MENON dkr JUDGE

ITA 473/2009 4 APPENDIX APPELLANT'S/(S) ANNEXURES: ANNEXURE A COPY OF ASSESSMENT ORDER DATED 30.03.2001 FOR THE AY 1998-99 ANNEXURE B COPY OF THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) DATED 29.12.2001. ANNEXURE C COPY OF THE ORDER OF THE INCOME TAX APPELLATE TRIBUNAL DATED 26.09.2005

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