POPULAR VEHICLES AND SERVICES LTD. vs. THE COMMISSIONER OF INCOME TAX

PDF · subscribers
ITA/186/2014HC KeralaKLHC01026752201422 February 2019Author: 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 Section 14A of the Income Tax Act, 1961, was not applicable for the assessment year 2006-07. The Court relied on the Supreme Court's decision in CIT Vs. Essar Teleholdings, (2018) 401 ITR 445 (SC). This ruling stated that the machinery provisions of Section 14A were brought into force only from the assessment year 2008-09. Therefore, the directions issued by the Tribunal to implement Section 14A for the assessment year 2006-07 were found to be not in consonance with the Supreme Court's decision. Consequently, the High Court set aside the order of the Tribunal and the Assessing Officer concerning the implementation of Section 14A for the year 2006-07. The question of law was answered in favour of the assessee and against the revenue. The appeal was allowed with no order as to costs.

What were the facts?

The appeal was filed by Popular Vehicles and Services Ltd. (the assessee) against an order of the Income Tax Appellate Tribunal (ITAT), Cochin Bench. The respondent was the Commissioner of Income Tax. The assessment year in question was 2006-07. The core issue revolved around the applicability of Section 14A of the Income Tax Act, 1961. The Tribunal's order directed the implementation of Section 14A for the assessment year 2006-07. The assessee contended that Section 14A was not applicable for this period, citing a Supreme Court decision. The High Court was tasked with deciding this legal contention.

What were the issues?

1. Whether Section 14A of the Income Tax Act, 1961, is applicable for the assessment year 2006-07, considering the introduction of machinery provisions. (Question of law) Assessee's Contention: The assessee argued that Section 14A was not applicable for the assessment year 2006-07. They relied on the decision of the Hon'ble Supreme Court in CIT Vs. Essar Teleholdings, (2018) 401 ITR 445 (SC), which held that Section 14A would only be applicable from the year 2008-09 when the machinery provisions were brought into force. Revenue's Contention: The judgment does not record any specific contentions made by the revenue on this issue.

Which sections of the Income-tax Act were involved?

Section 14A

AI-generated summary — verify with the full judgment below

Cited by 262 judgments on BharatTax

See all citing judgments →

Counted from the text of the judgments hosted here. Most recent first.

Cause title — parties, addresses and appearances
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE K.VINOD CHANDRAN & THE HONOURABLE MR. JUSTICE ASHOK MENON FRIDAY ,THE 22ND DAY OF FEBRUARY 2019 / 3RD PHALGUNA, 1940 ITA.No. 186 of 2014 AGAINST THE ORDER/JUDGMENT IN ITA 619/2013 of I.T.A.TRIBUNAL,COCHIN BENCH APPELLANT/S: POPULAR VEHICLES AND SERVICES LTD. MAMANGALAM, ERNAKULAM, KOCHI 682025 BY ADVS. SRI.P.GOPINATH (SR.) SRI.M.GOPIKRISHNAN NAMBIAR SMT.PREETHA S. NAIR SRI.JOSON MANAVALAN SRI.K.JOHN MATHAI SRI.KURYAN THOMAS SRI.P.BENNY THOMAS RESPONDENT/S: THE COMMISSIONER OF INCOME TAX CR BUILDINGS, I S PRESS ROAD, ERNAKULAM, KOCHI 682018 BY ADVS. SRI.P.K.R.MENON,SENIOR COUNSEL, GOI(TAXES) SRI.JOSE JOSEPH SC FOR INCOME TAX OTHER PRESENT: SRI JOSE JOSEPH SC THIS INCOME TAX APPEAL HAVING BEEN FINALLY HEARD ON 22.02.2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ITA 186/2014 ::2::

J U D G M E N T Vinod Chandran, J The only issue arising in the appeal is as to the application of Section 14A. Section 14A was held to be applicable only from the year 2008-09 when the machinery provision were brought into force, as held by the Hon'ble Supreme Court in (2018)401 ITR 445 (SC) [CIT Vs. Essar Teleholdings]. In such circumstances, we find the directions issued by the Tribunal to be not in consonance with the decision of the Hon'ble Supreme Court. We hence set aside the order of the Tribunal and also of the Assessing Officer insofar as implementation of Section 14A in the year 2006-07. The question of law is answered against the revenue and in favour of the assessee. The appeal is allowed. There is no order as to costs. K. Vinod Chandran, Judge Ashok Menon, jma Judge

ITA 186/2014 APPENDIX PETITIONER'S/S EXHIBITS: ANNEXURE-AOF THE ASSESSMENT ORDER DATED 29/12/2008 PASSED BY THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE 1(3), ERNAKULAM. ANNEXURE-BOF THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) DATED 30/7/2013. ANNEXURE-COF THE TRIBUNAL'S ORDER DATED 31/3/2014.

More judgments on Section 14A

All 15,875 judgments and leading authorities on Section 14A →

Recent GST High Court judgments

Search GST case law →