Ita/1191/2009 Of The Commissioner Of Income Tax, Cochin v. M/S.bses Kerala Power Ltd., Udyogamandal

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM FRIDAY, THE 14TH AUGUST 2009 / 23RD SRAVANA 1931 ITA.No. 1191 of 2009() ---------------------- ITA.669/2007 of I.T.A.TRIBUNAL,COCHIN BENCH .................... APPELLANT/APPELLANT: --------------------------- THE COMMISSIONER OF INCOME TAX, COCHIN. BY ADV. SRI.JOSE JOSEPH, SC, FOR INCOME TAX RESPONDENT(S)/RESPONDENT: ---------------------------------- BSES KERALA POWER LTD., UDYOGAMANDAL, KOCHI-683 501. THIS INCOME TAX APPEAL HAVING COME UP FOR ADMISSION ON 14/08/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ----------------------------------- I.T.A. No.1191 of 2009 ----------------------------------- Dated this the 14[th] day of August, 2009 J U D G M E N T---------------------- Ramachandran Nair,J. Heard the senior counsel appearing for the appellant.Question raised pertains to assessee's entitlement for deductionof Rs.2450 lakhs in the computation of book profit under 115JBof the Income Tax Act. It is seen from the findings of the firstappellate authority and Tribunal that the expenditure claimed isbased on arbitration award partly confirmed by the DistrictCourt. The only contention of the Revenue is that the matter wascarried in appeal by KSEB to Supreme Court and liability aroseonly after Supreme Court dismissed the appeal. We are unableto accept this contention because the award had become finaland based on the arbitration award confirmed by the DistrictCourt and High Court the assessee is entitled to claim theexpenditure. We therefore hold that the findings of the CIT(Appeals) as confirmed by the Tribunal is perfectly in order. Theappeal is consequently dismissed. C.N.RAMACHANDRAN NAIR, JUDGE. C.K.ABDUL REHIM, JUDGE.