Ita/18/2015 Of The Commissioner Of Income Tax, Cochin v. M/S.joy Alukkas Traders (India) Pvt. Ltd

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR.JUSTICE ANTONY DOMINIC &THE HONOURABLE MR. JUSTICE DAMA SESHADRI NAIDU FRIDAY, THE 6TH DAY OF OCTOBER 2017/14TH ASWINA, 1939 ITA.No. 18 of 2015 () ---------------------- AGAINST THE ORDER IN ITTP 6/2013 of I.T.A.TRIBUNAL,COCHIN BENCH DATED APPELLANT/APPELLANT:-------------------- THE COMMISSIONER OF INCOME TAX, COCHIN. BY ADVS.SRI.P.K.R.MENON,SR.COUNSEL, GOI(TAXES) SRI.JOSE JOSEPH, SC, FOR INCOME TAX RESPONDENT/RESPPONDENTS: ------------------------ M/S.JOY ALUKKAS TRADERS (INDIA) PVT. LTD., PEEVEES TRITON,SHANMUGHAM ROAD,ERNAKULAM-682031. R1 BY ADV. SRI.JOSEPH MARKOSE (SR.) R1 BY ADV. SRI.V.ABRAHAM MARKOS R1 BY ADV. SRI.BINU MATHEW R1 BY ADV. SRI.TOM THOMAS (KAKKUZHIYIL) R1 BY ADV. SRI.ABRAHAM JOSEPH MARKOS R1 BY ADV. SRI.ISAAC THOMAS R1 BY ADV. SRI.NOBY THOMAS CYRIAC THIS INCOME TAX APPEAL HAVING BEEN FINALLY HEARD ON 06-10-2017 THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ITA NO.18 OF 2015 APPENDIX APPELLANT'S ANNEXURES: ANNEXURE ACOPY OF THE ORDER GIIVNG EFFECT TO THE ORDER OF HON.ITATDTD.29.5.2013 PASSED BY THE ASSESSING OFFICER FOR AY 2007-2008. ANNEXURE BCOPY OF THE ITAT'S ORDER IT(TP) A NO.6/COCH/2013DATD.9.5.2014 FOR THE ASSESSMENT YEAR 2007-2008. TRUE COPY CSS/ P.S.TO JUDGE Antony Dominic & Dama Seshadri Naidu, JJ. ------------------------------------------- ITA No.18 of 2015 -------------------------------------------- Dated this the 6[th] day of October, 2017 JUDGMENT Antony Dominic, J. The revenue is in appeal against the order passed by the Income Tax Appellate Tribunal in ITA No.6 of 2013 concerning the assessment year 2007-2008 whereby the Tribunal has set aside the addition made on account of disallowance of notional interest. Thequestion of law framed in this appeal for the consideration of thisCourt reads thus: Whether on the facts and in the circumstances of the casethe interest paid on money borrowed to bring into existencea show room (according to the revenue an income earningapparatus) is a revenue expenditure? 2. In the decision reported in Joy Alukkas India (P) Ltd. V Asst. Commissioner of Income Tax (2016) 282 CTR (Ker.) 551, this ITA No.18 of 2015 2 Court has already considered the assessment order passed in the caseof the assessee herein for the assessment year 2007-2008 and heldthat the expenditure incurred by the assessee is revenue expenditureand answered the questions of law framed therein in favour of theassessee. The principle laid down in the aforesaid judgment has togovern the question of law framed for the consideration in this caseas well. Therefore, this appeal is disposed of, answering the question oflaw against the revenue and in favour of the assessee. Sd/-Antony Dominic, Judge css/ sd/- Dama Seshadri Naidu, Judge true copy P.S.TO JUDGE