Ita/155/2013 Of Commissioner Of Income Tax v. Midas Polymer Compounds Pvt. Ltd

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HON'BLE THE CHIEF JUSTICE DR. MANJULA CHELLUR & THE HONOURABLE MR.JUSTICE A.M.SHAFFIQUE MONDAY, THE 3RD DAY OF MARCH 2014/12TH PHALGUNA, 1935 ITA.No. 155 of 2013 () ----------------------- MA. NO.100/COCH/2012 (ARISING OUT OF ITA NO.266/COCH/2010) OF INCOME TAX APPELLATE TRIBUNAL, COCHIN BENCH. ....... APPELLANT/RESPONDENT.: ------------------------------------------ THE COMMISSIONER OF INCOME TAX, KOTTAYAM. BY SRI.P.K.R.MENON,SR.COUNSEL, GOI (TAXES). ADV. SRI.JOSE JOSEPH, SC, INCOME TAX. RESPONDENT/APPELLANT: ---------------------------------------- M/S.MIDAS POLYMER COMPOUNDS PVT. LTD., MIDAS MARKETING BUILDING, MARIATHURUTHU P.O., KOTTAYAM- 686 027. THIS INCOME TAX APPEAL HAVING COME UP FOR ADMISSION ON 03-03-2014, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: rs. ITA.No. 155 of 2013 APPENDIX PETITIONER'S ANNEXURES:- ANNEXURE ACOPY OF THE ASSESSMENT ORDER U/S.143(3) DATED 02/12/2009. ANNEXURE BCOPY OF THE CIT (APPEALS) ORDER NO.ITA-23/CIT(A)/IV/KTM/09-10 DATED 17/02/2010. ANNEXURE CCOPY OF THE ORDER OF THE TRIBUNAL IN ITA NO.266/COCH/2010.ITA NO.266/COCH/2010. ANNEXURE DCOPY OF THE ORDER OF THE HON'BLE HIGH COURT IN ITA NO.84/2009.IN ITA NO.84/2009. ANNEXURE ECOPY OF THE ORDER OF THE TRIBUNAL IN MA NO.100/COCH/2012 (ARISING OUT OF ITA NO.266/COCH/2010). RESPONDENT'S ANNEXURES:-NIL. //TRUE COPY// P.S. TO JUDGE rs. Manjula Chellur, C.J. & A.M. Shaffique, J. - - - - - - - - - - - - - - - - - - - - - - - - - - - - I.T.A. No. 155 OF 2013 - - - - - - - - - - - - - - - - - - - - - - - - - - - - Dated this the 3[rd] day of March, 2014 JUDGMENT Manjula Chellur, C.J. Revenue is before this Court aggrieved by ordersof the appellate Tribunal. In brief the facts that lead to thefiling of the present appeal is as under. 2. Assessee is a private limited company engaged in pre-cured tread rubber. The activities of the assesseeaccording to the Revenue are manufacturing rubber treadingmaterial and rubber compound and mixing on job work basis.The present appeal pertains to the assessment year 2007-08.Revenue opined that assessee included the income frommixing on job work basis also in the profits liable fordeduction under Section 80-IB of the Income Tax Act.However, according to the assessing officer, the said incomewas not liable for deduction, therefore rejected the claim ofthe assessee. According to the stand of the revenue that in mixing, the complete manufacturing does not occur and it isonly one of the several processes involved in the work,therefore, the claim that mixing charges also constituteincome from “manufacturing” was rejected. This came to bechallenged by the assessee and the first appeal came to berejected. Assessee approached the Tribunal and Tribunalinitially rejected the claim. But, later on when the Full Benchdecision of the High Court in ITA No.84 of 2009 dated21.12.2010 was brought to the notice of the Tribunal, itconsidered the Miscellaneous Application. Tribunal has alsonow held that assessee is eligible for such deduction. So faras ITA No.84 of 2009, Revenue did not file Special LeavePetition before Supreme Court as the tax effect was below theprescribed monetary limits for filing SLP. Fact remains that ason today the Full Bench decision in ITA No.84 of 2009 is thelaw declared on the subject matter. In that view of the matter, we decline to interferewith the orders of the authorities concerned and accordingly ITA No. 155 of 2013 -:3:- the appeal is dismissed in terms of ITA No.84 of 2009 dated 21.12.2010. Manjula Chellur, Chief Justice. A.M. Shaffique, Judge. ttb/03/03