Ita/105/2008 Of The Commissioner Of Income Tax, Thiruvan v. Kerala State Industrial Enterprises Ltd

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR.JUSTICE K.VINOD CHANDRAN & THE HONOURABLE MR. JUSTICE ASHOK MENON THURSDAY, THE 11TH DAY OF JANUARY 2018 / 21 ST POUSHA, 1939 ITA.No. 105 of 2008 AGAINST THE ORDER/JUDGMENT IN TA 42/COCH/2004 of I.T.A.TRIBUNAL,COCHINBENCH DATED 06-07-2005 APPELLANT(S)/APPELLANT THE COMMISSIONER OF INCOME-TAX THIRUVANANTHAPURAM BY ADVS.SRI.P.K.R.MENON, SR.COUNSEL, GOI(TAXES) SRI.JOSE JOSEPH, SC, FOR INCOME TAX RESPONDENT(S)/RESPONDENT: KERALA STATE INDUSTRIAL ENTERPRISES LTD. THIRUVANANTHAPURAM. BY ADV. SRI.E.K.NANDAKUMAR (SR.) SRI.P.GOPINATH THIS INCOME TAX APPEAL HAVING BEEN FINALLY HEARD ON 11-01-2018, ALONG WITH ITA NOS.138/2008 AND 251/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ITA 105/2008 APPELLANT'S ANNEXURES APPENDIX ANNEXURE-A : COPY OF ORDER OF THE ASSESSING OFFICER DATED 3.3.2003. ANNEXURE-B : COPY OF ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS) DATED3.12.2003. ANNEXURE-C : COPY OF ORDER OF THE APPELLATE TRIBUNAL DATED 6.7.2005. //TRUE COPY// jg-17/1 PS TO JUDGE. K.VINOD CHANDRAN & ASHOK MENON, JJ. ------------------------------------------- I.T.Appeal Nos.105 & 138 of 2008 and 251 of 2009 ------------------------------------------- Dated this the 11[th] day of January, 2018 J U D G M E N T Vinod Chandran, J. The issue raised in the above appeals, insofar as theinapplicability of the Income Tax Act, 1961, to the respondentInstitution has been categorically found by a Division Bench byjudgment dated 9.8.2011 in ITA Nos.304 and 311 of 2002. Weextract paragraph No.3 of that judgment hereunder:- “3.It is also seen from the Tribunal's order that in1999 the Government discontinued the arrangementswith the respondent by just declaring that the benefitsor loss on account of all money transactions made bythe respondent on behalf of the Government will go toGovernment in the same form and style of the asset.In view of the findings of the Tribunal that respondentis only a channelising agency for transfer of funds andit is not a beneficiary of the interest earned on suchfunds transferred by the Government through it, therespondent cannot be assessed under the Act. We,therefore, dismiss both the appeals filed by theRevenue.” ITA 105, 138/08 & 251/09 Respectfully following the aforesaid declaration, we rejectthese appeals answering the question raised by the Revenue against the Revenue and in favour of the respondent assessee. K.VINOD CHANDRAN JUDGE jg ASHOK MENON JUDGE