Ita/325/2019 Of The Principal Commissioner Of Income -Tax v. Kerala State Industrial Development Corporation Ltd

ITA NO. 325 OF 2019 2024:KER:58694 IN THE HIGH COURT OF KERALA AT ERNAKULAMPRESENT THE HONOURABLE DR. JUSTICE A.K.JAYASANKARAN NAMBIAR & THE HONOURABLE MR. JUSTICE SYAM KUMAR V.M.MONDAY, THE 5 DAY OF AUGUST 2024 / 14TH SRAVANA, 1946 ITA NO. 325 OF 2019 AGAINST THE ORDER/JUDGMENT DATED 18.06.2019 IN ITA NO.115 OF2019 OF I.T.A.TRIBUNAL,COCHIN BENCHAPPELLANT/APPELLANT/RESPONDENT/REVENUE THE PRINCIPAL COMMISSIONER OF INCOME -TAXTHIRUVANANTHAPURAM BY ADV SRI.CHRISTOPHER ABRAHAM, INCOME TAX DEPARTMENT RESPONDENT/RESPONDENT/APPELLANT/ASSESSEE KERALA STATE INDUSTRIAL DEVELOPMENT CORPORATION LTDKESTON ROAD, KOWDIAR, TRIVANDRUM-695 003 (PAN ) BY ADVS. SRI.T.M.SREEDHARAN (SR.)SMT.NISHA JOHNSRI.V.P.NARAYANANSMT.DIVYA RAVINDRANSRI.R.BHASKARA KRISHNAN THIS INCOME TAX APPEAL HAVING COME UP FOR ADMISSION ON05.08.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: J U D G M E N T============ Dr. A.K.Jayasankaran Nambiar, J. It is agreed by both sides that the issue as towhether in the context of Section 36(1)(viii) and Section41(4A) of the Income Tax Act ('the Act' for short), awithdrawal from a special reserve, in respect of which adeduction had been allowed under Section 36(1)(viii) ofthe Act, would attract the provisions of Section 41(4A) ofthe Act, so as to deem the withdrawn amount as profitsand gains of business or profession, has been decided bythis Court in the judgment dated 05.04.2019 in I.T.AppealNo.69 of 2014 and connected cases, wherein this Courtfound in favour of the assessee in almost similarcircumstances. In that case, it was also observed that thequestion as to whether the assessee had withdrawn anyamount from the special reserve created and maintainedduring the relevant year, was more a question of fact andnot a substantial question of law for the purposes ofmaintaining an I.T. Appeal before this Court. Following the said judgment of this Court smm ITA NO. 325 OF 2019 2024:KER:58694 therefore, we dismiss the I.T.Appeal preferred by therevenue by finding that it does not raise any substantialquestion of law to be considered by this Court. Sd/- DR. A.K.JAYASANKARAN NAMBIAR JUDGE Sd/- SYAM KUMAR V.M. JUDGE APPENDIX OF ITA 325/2019 2024:KER:58694 PETITIONER ANNEXURES ANNEXURE A TRUE COPY OF THE ORDER U/S 143(3) R.W.S. 263 OF THE INCOME TAX ACT, 1961 OF THE ASSESSING OFFICE FOR THE AY 2010-11 DATED 11/03/2016. ANNEXURE BTRUE COPY OF THE ORDER OF THE COMMISSIONEROF INCOME TAX ( APPEALS) TRIVANDRUM DATED 30/11/2018. ANNEXURE C TRUE COPY OF THE ORDER OF THE ITAT IN IT NO. 115/COCH/2019 FOR THE AY 2010-11 DATED18/06/2019.