THE COMMISSIONER OF INCOME TAX vs. M/S BHAGEERATHA ENGINEERING LTD.,

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE S.V.BHATTI & THE HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS THURSDAY, THE 24TH DAY OF JUNE 2021 / 3RD ASHADHA, 1943 ITR NO. 194 OF 1997 AGAINST THE ORDER/JUDGMENT IN ITA 164/1992 OF I.T.A.TRIBUNAL,COCHIN BENCH, ERNAKULAM PETITIONER/S: THE COMMISSIONER OF INCOME TAX COCHIN. BY ADV SRI.P.K.R.MENON(SR.),SR.COUNSEL FOR IT BY ADV CHRISTOPHER ABRAHAM, INCOME TAX DEPARTMENT RESPONDENT/S: M/S BHAGEERATHA ENGINEERING LTD., 132, PANAMPILLY AVENUE, COCHIN-16. BY ADVS. SMT.P.ANITHA SMT.P.ANITHA SMT.R.S.GEETHA, SR. ADV. T SREEDHARAN SRI.V.B.UNNIRAJ OTHER PRESENT: SC CHRISTOPHER ABRAHAM., SR ADV. T. SREEDHARAN THIS INCOME TAX REFERENCE HAVING COME UP FOR HEARING ON 24.06.2021, ALONG WITH ITR.193/1997, 195/1997 AND CONNECTED CASES, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

ITR Nos.193 to 197/1997 -2- IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE S.V.BHATTI & THE HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS THURSDAY, THE 24TH DAY OF JUNE 2021 / 3RD ASHADHA, 1943 ITR NO. 193 OF 1997 AGAINST THE ORDER/JUDGMENT IN ITA 404/1991 OF I.T.A.TRIBUNAL,COCHIN BENCH, ERNAKULAM PETITIONER/S: THE COMMISSIONER OF INCOME TAX, COCHIN. BY ADVS. SRI.P.K.R.MENON(SR.),SR.COUNSEL FOR IT CHRISTOPHER ABRAHAM, INCOME TAX DEPARTMENT RESPONDENT/S: M/S BHAGEERATHA ENGINEERING LTD., 132, PANAMPILLY AVENUE, COCHIN-16. BY ADVS. SMT.P.ANITHA SMT.P.ANITHA SMT.R.S.GEETHA SRI.V.B.UNNIRAJ, SR. ADV. T SREEDHARAN THIS INCOME TAX REFERENCE HAVING COME UP FOR HEARING ON 24.06.2021, ALONG WITH ITR.194/1997 AND CONNECTED CASES, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

ITR Nos.193 to 197/1997 -3- IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE S.V.BHATTI & THE HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS THURSDAY, THE 24TH DAY OF JUNE 2021 / 3RD ASHADHA, 1943 ITR NO. 195 OF 1997 AGAINST THE ORDER/JUDGMENT IN ITA 767/1992 OF I.T.A.TRIBUNAL,COCHIN BENCH, ERNAKULAM PETITIONER/S: THE COMMISSIONER OF INCOME TAX, COCHIN. BY ADVS. SRI.P.K.R.MENON(SR.),SC FOR IT CHRISTOPHER ABRAHAM, INCOME TAX DEPARTMENT RESPONDENT/S: M/S BHAGEERATHA ENGINEERING LTD., 132, PANAMPILLY AVENUE, COCHIN-16. BY ADVS. SMT.P.ANITHA SMT.P.ANITHA SMT.R.S.GEETHA SRI.V.B.UNNIRAJ, SR. ADV. T SREEDHARAN THIS INCOME TAX REFERENCE HAVING COME UP FOR HEARING ON 24.06.2021, ALONG WITH ITR.194/1997 AND CONNECTED CASES, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

ITR Nos.193 to 197/1997 -4- IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE S.V.BHATTI & THE HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS THURSDAY, THE 24TH DAY OF JUNE 2021 / 3RD ASHADHA, 1943 ITR NO. 196 OF 1997 AGAINST THE ORDER/JUDGMENT IN ITA 579/1995 OF I.T.A.TRIBUNAL,COCHIN BENCH, ERNAKULAM PETITIONER/S: THE COMMISSIONER OF INCOME TAX , COCHIN. BY ADVS. SRI.P.K.R.MENON(SR.),SC FOR IT CHRISTOPHER ABRAHAM, INCOME TAX DEPARTMENT RESPONDENT/S: M/S BHAGEERATHA ENGINEERING LTD., 132, PANAMPILLY AVENUE, COCHIN-16. BY ADVS. SMT.P.ANITHA SMT.P.ANITHA SMT.R.S.GEETHA SRI.V.B.UNNIRAJ, SR. ADV. T SREEDHARAN THIS INCOME TAX REFERENCE HAVING COME UP FOR HEARING ON 24.06.2021, ALONG WITH ITR.194/1997 AND CONNECTED CASES, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

ITR Nos.193 to 197/1997 -5- IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE S.V.BHATTI & THE HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS THURSDAY, THE 24TH DAY OF JUNE 2021 / 3RD ASHADHA, 1943 ITR NO. 197 OF 1997 AGAINST THE ORDER/JUDGMENT IN ITA 929/1909 OF I.T.A.TRIBUNAL,COCHIN BENCH, ERNAKULAM PETITIONER/S: THE COMMISSIONER OF INCOME TAX, COCHIN. BY ADVS. SRI.P.K.R.MENON(SR.),SC FOR IT CHRISTOPHER ABRAHAM, INCOME TAX DEPARTMENT RESPONDENT/S: M/S BHAGEERATHA ENGINEERING LTD., 132, PANAMPILLY AVENUE, COCHIN-16. BY ADVS. SMT.P.ANITHA SMT.P.ANITHA SMT.R.S.GEETHA SRI.V.B.UNNIRAJ, SR. ADV. T SREEDHARAN THIS INCOME TAX REFERENCE HAVING COME UP FOR HEARING ON 24.06.2021, ALONG WITH ITR.194/1997 AND CONNECTED CASES, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

ITR Nos.193 to 197/1997 -6- O R D E R [ITR Nos.194/1997, 193/1997, 195/1997, 196/1997, 197/1997] S.V. Bhatti, J. These five I.T.Rs are before this Court by reference under Section 256(1) of the Income Tax Act, 1961 (for short 'the Act'). The I.T.Rs relate to Assessment Years 1987-88 to 1991-92. The I.T.Rs have been listed for hearing along with I.T.R. No.264/1997 of the same assessee for the year 1986-87. By a separate judgment in I.T.R. No.264/1997 questions have been answered in favour of assessee. The learned Counsel appearing for the Department and the Assessee would state that the main question in I.T.R. No.264/1997 is adoption of accounting standards, treatment of deferred payment arrangement etc. The questions of law now referred in the I.T.Rs substantially cover the answer given by this Court on principle points of

ITR Nos.193 to 197/1997 -7- reference in I.T.R. No.264/1997 as well. By referring to the answers given in I.T.R. No.264/1997, the applicable questions of law are answered in favour of the assessee and against the Revenue. A few other questions are not pressed and after perusing the record, we are of the view that these questions in fact having regard to the findings of fact recorded by the Tribunal do not arise for our consideration. The point is answered in favour of the assessee and against the Revenue. I.T.R. Nos.193 to 197/1997 are dismissed. Registry shall send the certified copy of this judgment to the Income Tax Appellate Tribunal. Sd/- S.V.BHATTI JUDGE Sd/- BECHU KURIAN THOMAS JUDGE jjj

ITR Nos.193 to 197/1997 -8- APPENDIX OF ITR 193/1997 PETITIONER ANNEXURE ANNEXURE A1 COPY OF ASSESSMENT ORDER FOR ASSESSMENT YEAR 1987-88 DATED 12/03/1990. ANNEXURE A2 COPY OF ASSESSMENT ORDER FOR ASSESSMENT YEAR 1988-89 DATED 27/03/1991. ANNEXURE A3 COPY OF ASSESSMENT ORDER FOR ASSESSMENT YEAR 1989-90 DATED 31/03/1992. ANNEXURE A4 COPY OF ASSESSMENT ORDER FOR ASSESSMENT YEAR 1990-91 DATED 19/03/1993. ANNEXURE A5 COPY OF ASSESSMENT ORDER FOR ASSESSMENT YEAR 1991-92 DATED 23/01/1994. ANNEXURE B1 COPY OF ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) FOR THE ASSESSMENT YEAR 1987-88 DATED 31/01/1991. ANNEXURE B2 COPY OF ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) FOR THE ASSESSMENT YEAR 1988-89 DATED 18/02/1991. ANNEXURE B3 COPY OF ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) FOR THE ASSESSMENT YEAR 1989-90 DATED 07/09/1992. ANNEXURE B4 COPY OF ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) FOR THE ASSESSMENT YEAR 1990-91 DATED 07/06/1993. ANNEXURE B5 COPY OF ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) FOR THE ASSESSMENT YEAR 1991-92 DATED 18/11/1994.

ITR Nos.193 to 197/1997 -9- ANNEXURE C COPY OF THE ORDER OF THE TRIBUNAL DATED 29/03/1995.

ITR Nos.193 to 197/1997 -10- APPENDIX OF ITR 195/1997 PETITIONER ANNEXURE ANNEXURE A1 COPY OF ASSESSMENT ORDER FOR ASSESSMENT YEAR 1987-88 DATED 12/03/1990. ANNEXURE A2 COPY OF ASSESSMENT ORDER FOR ASSESSMENT YEAR 1988-89 DATED 27/03/1991. ANNEXURE A3 COPY OF ASSESSMENT ORDER FOR ASSESSMENT YEAR 1989-90 DATED 31/03/1992. ANNEXURE A4 COPY OF ASSESSMENT ORDER FOR ASSESSMENT YEAR 1990-91 DATED 19/03/1993. ANNEXURE A5 COPY OF ASSESSMENT ORDER FOR ASSESSMENT YEAR 1991-92 DATED 23/01/1994. ANNEXURE B1 COPY OF ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) FOR THE ASSESSMENT YEAR 1987-88 DATED 31/01/1991. ANNEXURE B2 COPY OF ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) FOR THE ASSESSMENT YEAR 1988-89 DATED 18/02/1991. ANNEXURE B3 COPY OF ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) FOR THE ASSESSMENT YEAR 1989-90 DATED 07/09/1992. ANNEXURE B4 COPY OF ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) FOR THE ASSESSMENT YEAR 1990-91 DATED 07/06/1993. ANNEXURE B5 COPY OF ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) FOR THE ASSESSMENT YEAR 1991-92 DATED 18/11/1994.

ITR Nos.193 to 197/1997 -11- ANNEXURE C COPY OF THE ORDER OF THE TRIBUNAL DATED 29/03/1995.

ITR Nos.193 to 197/1997 -12- APPENDIX OF ITR 196/1997 PETITIONER ANNEXURE ANNEXURE A1 COPY OF ASSESSMENT ORDER FOR ASSESSMENT YEAR 1987-88 DATED 12/03/1990. ANNEXURE A2 COPY OF ASSESSMENT ORDER FOR ASSESSMENT YEAR 1988-89 DATED 27/03/1991. ANNEXURE A3 COPY OF ASSESSMENT ORDER FOR ASSESSMENT YEAR 1989-90 DATED 31/03/1992. ANNEXURE A4 COPY OF ASSESSMENT ORDER FOR ASSESSMENT YEAR 1990-91 DATED 19/03/1993. ANNEXURE A5 COPY OF ASSESSMENT ORDER FOR ASSESSMENT YEAR 1991-92 DATED 23/01/1994. ANNEXURE B1 COPY OF ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) FOR THE ASSESSMENT YEAR 1987-88 DATED 31/01/1991. ANNEXURE B2 COPY OF ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) FOR THE ASSESSMENT YEAR 1988-89 DATED 18/02/1991. ANNEXURE B3 COPY OF ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) FOR THE ASSESSMENT YEAR 1989-90 DATED 07/09/1992. ANNEXURE B4 COPY OF ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) FOR THE ASSESSMENT YEAR 1990-91 DATED 07/06/1993. ANNEXURE B5 COPY OF ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) FOR THE ASSESSMENT YEAR 1991-92 DATED 18/11/1994.

ITR Nos.193 to 197/1997 -13- ANNEXURE C COPY OF THE ORDER OF THE TRIBUNAL DATED 29/03/1995.

ITR Nos.193 to 197/1997 -14- APPENDIX OF ITR 197/1997 PETITIONER ANNEXURE ANNEXURE D TRUE COPY OF THE ORDER OF THE TRIBUNAL DATED 22/11/2001. ANNEXURE A1 COPY OF ASSESSMENT ORDER FOR ASSESSMENT YEAR 1987-88 DATED 12/03/1990. ANNEXURE A2 COPY OF ASSESSMENT ORDER FOR ASSESSMENT YEAR 1988-89 DATED 27/03/1991. ANNEXURE A3 COPY OF ASSESSMENT ORDER FOR ASSESSMENT YEAR 1989-90 DATED 31/03/1992. ANNEXURE A4 COPY OF ASSESSMENT ORDER FOR ASSESSMENT YEAR 1990-91 DATED 19/03/1993. ANNEXURE A5 COPY OF ASSESSMENT ORDER FOR ASSESSMENT YEAR 1991-92 DATED 23/01/1994. ANNEXURE B1 COPY OF ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) FOR THE ASSESSMENT YEAR 1987-88 DATED 31/01/1991. ANNEXURE B2 COPY OF ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) FOR THE ASSESSMENT YEAR 1988-89 DATED 18/02/1991. ANNEXURE B3 COPY OF ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) FOR THE ASSESSMENT YEAR 1989-90 DATED 07/09/1992. ANNEXURE B4 COPY OF ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) FOR THE ASSESSMENT YEAR 1990-91 DATED 07/06/1993.

ITR Nos.193 to 197/1997 -15- ANNEXURE B5 COPY OF ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) FOR THE ASSESSMENT YEAR 1991-92 DATED 18/11/1994. ANNEXURE C COPY OF THE ORDER OF THE TRIBUNAL DATED 29/03/1995.

ITR Nos.193 to 197/1997 -16- APPENDIX OF ITR 194/1997 PETITIONER ANNEXURE ANNEXURE A1 COPY OF ASSESSMENT ORDER FOR ASSESSMENT YEAR 1987-88 DATED 12/03/1990. ANNEXURE A2 COPY OF ASSESSMENT ORDER FOR ASSESSMENT YEAR 1988-89 DATED 27/03/1991. ANNEXURE A3 COPY OF ASSESSMENT ORDER FOR ASSESSMENT YEAR 1989-90 DATED 31/03/1992. ANNEXURE A4 COPY OF ASSESSMENT ORDER FOR ASSESSMENT YEAR 1990-91 DATED 19/03/1993. ANNEXURE A5 COPY OF ASSESSMENT ORDER FOR ASSESSMENT YEAR 1991-92 DATED 23/01/1994. ANNEXURE B1 COPY OF ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) FOR THE ASSESSMENT YEAR 1987-88 DATED 31/01/1991. ANNEXURE B2 COPY OF ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) FOR THE ASSESSMENT YEAR 1988-89 DATED 18/02/1991. ANNEXURE B3 COPY OF ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) FOR THE ASSESSMENT YEAR 1989-90 DATED 07/09/1992. ANNEXURE B4 COPY OF ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) FOR THE ASSESSMENT YEAR 1990-91 DATED 07/06/1993. ANNEXURE B5 COPY OF ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) FOR THE ASSESSMENT YEAR 1991-92 DATED 18/11/1994.

ITR Nos.193 to 197/1997 -17- ANNEXURE C COPY OF THE ORDER OF THE TRIBUNAL DATED 29/03/1995.