Ita/215/2010 Of The Commissioner Of Income Tax, Kottayam v. M/S.mangalam Publications, Kottayam

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE B.P.RAY THURSDAY, THE 23RD DECEMBER 2010 / 2ND POUSHA 1932 ITA.No. 215 of 2010() --------------------- ITA.253/COCH/2002 of I.T.A.TRIBUNAL,COCHIN BENCH .................... : APPELLANT /APPELLANT ---------------------------------------- THE COMMISSIONER OF INCOME TAX, KOTTAYAM BY ADV. SRI.JOSE JOSEPH, SC, FOR INCOME TAX RESPONDENT(S): RESPONDENT ------------------------- M/S.MANGALAM PUBLICATIONS , KOTTAYAM. ADV. SRI.K.SRIKUMAR SRI.K.MANOJ CHANDRAN THIS INCOME TAX APPEAL HAVING BEEN FINALLY HEARD ON 23/12/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C .N. RAMACHANDRAN NAIR, &BHABANI PRASAD RAY, JJ. -------------------------------------------- I.T.A. No. 215 of 2010 -------------------------------------------- Dated this the 23rd day of December, 2010 JUDGMENT Ramachandran Nair, J. Heard standing counsel for the appellant and Advocate Sri. K.Sreekumar, who took notice on admission and argued the matter.Assessment involved is reassessment completed under Section 147 ofthe I.T. Act based on Profit and Loss Account and Balance Sheetfurnished by the respondent before the Bank for availing loan. Incomereturned and originally assessed was not consistent with the turnoverand income available in the Profit and Loss Account produced beforethe Bank. The assessee's specific case was that for availing loancooked up accounts were produced before the Bank. Therefore it is forthe Bank to take note of the same and not for the Income-taxDepartment. Strangely even after getting details from the Bank,Income-tax Department has not chosen to conduct any independentenquiry to find out whether the details of turnover, income, etc.,furnished before the Bank are correct or not. We do not think reassessment can be solely based on a statement of accounts furnishedby the respondent before the Bank. The first appellate authority as wellas Tribunal rightly held that assessment is without any tenable basis.We do not find any ground to interfere with the orders of the Tribunal.Consequently Appeal is dismissed. (C.N.RAMACHANDRAN NAIR)Judge. (BHABANI PRASAD RAY) Judge. kk