Ita/1116/2009 Of The Commissioner Of Income Tax v. M/S. The South Indian Bank Ltd

IN THE HIGH COURT OF KERALA AT ERNAKULAMPRESENT THE HONOURABLE MR.JUSTICE K.VINOD CHANDRAN & THE HONOURABLE MR. JUSTICE ASHOK MENON WEDNESDAY,THE 12TH DAY OF DECEMBER 2018 / 21ST AGRAHAYANA,1940 ITA.No. 570 of 2009 AGAINST THE ORDER/JUDGMENT IN ITA 127/2004 ofI.T.A.TRIBUNAL,COCHIN BENCH DATED 19-09-2005 APPELLANT/S: THE COMMISSIONER OF INCOME TAX,TRICHUR BY ADVS. SRI.P.K.R.MENON,SENIOR COUNSEL, GOI(TAXES)SRI.JOSE JOSEPH SC FOR INCOME TAX RESPONDENT/S: THE SOUTH INDIAN BANK LTD,TRICHUR.TRICHUR. BY ADV. SRI.P.BALAKRISHNAN (E) OTHER PRESENT: SRI PKR MENON SR COUNSEL FOR GOI TAXES, SRI JOSE JOSEPH SC THIS INCOME TAX APPEAL HAVING BEEN FINALLY HEARD ON 12.12.2018, ALONG WITH ITA.1116/2009, THE COURT ON THE SAMEDAY DELIVERED THE FOLLOWING: ITA No.570/2009&1116/2009 ::2:: IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE K.VINOD CHANDRAN & THE HONOURABLE MR. JUSTICE ASHOK MENON WEDNESDAY,THE 12TH DAY OF DECEMBER 2018 / 21ST AGRAHAYANA, 1940 ITA.No. 1116 of 2009 AGAINST THE ORDER/JUDGMENT IN ITA 360/2006 of I.T.A.TRIBUNAL,COCHINBENCH DATED 27-09-2007 APPELLANT/S: 1THE COMMISSIONER OF INCOME TAX. THRISSUR. 2THE COMMISSIONER OF INCOME TAX, AGED 1 YEARS THRISSUR BY ADVS. SRI.P.K.R.MENON,SENIOR COUNSEL, GOI(TAXES)SRI.JOSE JOSEPH SC FOR INCOME TAX RESPONDENT/S: 1M/S. THE SOUTH INDIAN BANK LTD.MISSION QUARTERS, THRISSUR.MISSION QUARTERS, THRISSUR. 2M/S. THE SOUTH INDIAN BANK LTD, MISSION QUARTERS, THRISSUR. BY ADV. SRI.P.BALAKRISHNAN (E) THIS INCOME TAX APPEAL HAVING BEEN FINALLY HEARD ON 12.12.2018, ALONG WITH ITA.570/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ITA No.570/2009 & 1116/2009 J U D G M E N T Vinod Chandran, J The two appeals arise from the assessmentyear 1996-97 and 2004-05. ITA 570/2009 raises twoquestions both of which are covered against therevenue. The first issue is on amortization of losscaused on sale of current investment . The same iscovered by the decision of this Court in I.T.ANo.946/2009 dated 09.10.2009 against the Revenueand in favour of the assessee. The furtherquestion is on the application of Section 14A whichis covered by the decision of the Hon'ble SupremeCourt reported in Commissioner of Income Taxv.Essar Teleholdings Ltd.,[(2018) 401 ITR 445] alsoanswered against the Revenue and in favour of theassessee. The Hon'ble Supreme Court found that theapplication of section 14A can be only from the assessment year 2007-08. ITA 570/2009 would standrejected. 2. ITA No.116/2009 also raises twoquestions; one on Section 14A and the other on theremand made by the Tribunal with respect to aparticular issue. On the issue of remand we refuseto answer the question of law since the AssessingOfficer has only been asked to reconsider theissue. On Section 14A, we again follow EssarTeleholdings Ltd.,to answer the question againstthe revenue and in favour of the assessee. ITA No.1116/2009 would therefore standrejected. No order as to costs. Sd/-K. Vinod Chandran, Judge jma Sd/- Ashok Menon, Judge APPENDIX OF ITA 570/2009 PETITIONER'S/S EXHIBITS: ANNEXURE A: TRUE COPY OF THE ORDER OF THE ASSESSINGOFFICER UNDER SECTION 143(3) R.W.S.147 OF THE I.T.ACT DATED 28.03.2002. ANNEXURE B: TRUE COPY OF THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) INITA NO.9/R1/TCR/CIT-V/02-03 DATED 05.11.2003. ANNEXURE C: TRUE COPY OF THE ORDER OF THE INCOME TAX APPELLANT TRIBUNAL IN I.T.A. NO.127/COCH/2004 DATED 26.09.2005. APPENDIX OF ITA 1116/2009 PETITIONER'S/S EXHIBITS: ANNEXURE A TRUE COPY OF THE ORDER OF THE ASSESSINGOFFICER U/S. 143(3) DATED 15-12-2005 ANNEXURE BTRUE COPY OF THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) INITA 68/R.1/TCR/CIT V/05.06 DATED 17-03-2006 ANNEXURE C TRUE COPY OF THE ORDER OF THE INCOME TAX APPELLATE TRIBUNAL IN ITA 360(COCH)/2006 DATED 27-09-2007