Commissioner of Income Tax-II, vs. M/S TNS India [Pvt] Ltd,

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE K.VINOD CHANDRAN & THE HONOURABLE MR. JUSTICE ASHOK MENON FRIDAY ,THE 25TH DAY OF JANUARY 2019 / 5TH MAGHA, 1940 ITA.No. 378 of 2010 AGAINST THE ORDER/JUDGMENT IN ITA 1014/2008 of I.T.A.TRIBUNAL,COCHIN BENCH DATED 31-05-2010 APPELLANT/S: M/S.ROADS AND BRIDGES DEVELOPMENT CORPORATION OF KERALA LIMITED, 2ND FLOOR, PREETHY BUILDING,, M.V.ROAD, PALARIVATTOM, COCHIN-682025. BY ADVS. SRI.P.GOPINATH (SR.) SRI.E.K.NANDAKUMAR SMT.PREETHA S.NAIR SRI.K.JOHN MATHAI SRI.P.BENNY THOMAS RESPONDENT/S: ASST. COMMISSIONER OF INCOME TAX, CIRCLE-I(3), ERNAKULAM. (CAUSE TITLE AMENDED) THE CAUSE TITLE IS CORRECTED BY SUBSTITUTING THE COMMISSIONER OF INCOME TAX, I.S.PRESS ROAD, COCHIN-682018 AS THE NAME OF THE RESPONDENT IN THE PLACE OF ASST.COMMISSIONER OF INCOME TAX, CIRCLE I(3), ERNAKULAM AS PER ORDER DATED 22/3/2011 IN IA 758/2011. BY ADVS. SRI.P.K.R.MENONSR.COUNSEL GOITAXES SRI.JOSE JOSEPH SC FOR INCOME TAX THIS INCOME TAX APPEAL HAVING BEEN FINALLY HEARD ON 25.01.2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

ITA378/2010 2 JUDGMENT Vinod Chandran, J A connected appeal of another assessment year was disposed of answering the questions in favour of the assessee and against revenue by judgment in ITA No.376/2010 dated 06.07.2018. The issue raised herein is also as to the interest income from mobilisation advance given to the contractor; whether it be treated as capital receipt or revenue receipt. We held following Commissioner of Income Tax v. Bokaro Steel Ltd.[(1999) 236 ITR 315] that it is a capital receipt. Hence the question of law raised is answered against the revenue and in favour of the assessee.

ITA378/2010 3 The appeal would stand allowed leaving the parties to suffer their costs.

Sd/- K. Vinod Chandran, Judge Sd/- Ashok Menon, Judge jma

ITA378/2010 4 APPENDIX PETITIONER'S/S EXHIBITS: ANNEXURE-A TRUE COPY OF THE ASSESSMENT ORDER DATED 23/11/2006. ANNEXURE-B TRUE COPY OF THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) DATED 14/10/2008 ANNEXURE-C TRUE COPY OF THE ORDER OF THE INCOME TAX APPELLATE TRIBUNAL, DATED 31/5/2010.