Ita/925/2009 Of The Commissioner Of Income Tax v. The Travancore Cochin Chemicals Ltd

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE V.K.MOHANAN WEDNESDAY, THE 16TH SEPTEMBER 2009 / 25TH BHADRA 1931 ITA.No. 925 of 2009() --------------------- ITA.44/COCH/2000 of I.T.A.TRIBUNAL,COCHIN BENCH .................... APPELLANT/APPELLANT: -------------------- THE COMMISSIONER OF INCOME TAX, COCHIN. BY ADV. SRI.P.K.R.MENON,SR.COUNSEL, GOI(TAXES) SRI.JOSE JOSEPH, SC, FOR INCOME TAX RESPONDENT(S): --------------- THE TRAVANCORE COCHIN CHEMICALS LTD, UDYOGAMANDAL. THIS INCOME TAX APPEAL HAVING COME UP FOR ADMISSION ON 16/09/2009,ALONG WITH ITA NOS.1023,1048 & 1518 OF 2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.N.RAMACHANDRAN NAIR &V.K.MOHANAN, JJ. .................................................................... I.T. Appeal Nos.925,1023,1048 & 1518 of 2009 ....................................................................Dated this the 16th day of September, 2009. JUDGMENT Ramachandran Nair, J. The question raised in all the connected cases is whether theTribunal was justified in confirming the order of the first appellateauthority declaring eligibility of the respondent for deduction of theservice charges paid to State Government. It is admitted that therespondent is a fully owned State Government undertaking which isbound by Government Orders. The Government constitute the Boardof Directors of the Company with it's nominees including GovernmentSecretaries and Government goes to the rescue of the Companywhenever it is in difficulties. In fact we have considered in detailvarious services rendered by Government to Government Companies inour decision in I.T.A. No.262/2009 and connected cases which pertainsto another State Government undertaking. Even though StandingCounsel for the appellant contended that the service charges paid is notfor actual services rendered, we do not think there is any scope for this court examining whether the payment is in proportion to the servicesrendered by the Government. It is seen that the Tribunal hasconfirmed the order of the first appellate authority following theirdecision in another case which is confirmed by us vide our judgmentabovereferred. Following the said judgment we dismiss the appealsfiled by the department. Registry will attach a copy of the judgment inthe above cases to form part of this judgment. C.N.RAMACHANDRAN NAIRJudge pms V.K.MOHANANJudge