Ita/96/2009 Of The Commissioner Of Income Tax v. Eastern Condiments (P) Ltd,Adimali

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM MONDAY, THE 8TH JUNE 2009 / 18TH JYAISHTA 1931 ITA.No. 96 of 2009() -------------------- ITA.785/COCH/2005 of I.T.A.TRIBUNAL,COCHIN BENCH .................... APPELLANT:APPELLANT: -------------------- THE COMMISSIONER OF INCOME TAX, COCHIN. BY ADV. SRI.JOSE JOSEPH, SC, FOR INCOME TAX RESPONDENT(S): --------------- EASTERN CONDIMENTS (P) LTD., EASTERN VALLEY, ADIMALI. THIS INCOME TAX APPEAL HAVING COME UP FOR ADMISSION ON 08/06/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C .N. RAMACHANDRAN NAIR &C.K. ABDUL REHIM, JJ. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Dated this the 8th day of June, 2009 JUDGMENT Ramachandran Nair,J. Heard standing counsel appearing for the appellant. Thequestion raised in the appeal filed by the Revenue is whether twoitems of deposit made by the assessee before TNEB are expenditureof revenue nature or whether they are capital not eligible fordeduction. The total amount involved is Rs. 1,10,000/- out of whichRs. 60,000/- is Earnest Money Deposit, which obviously is refundableto the assessee in the course of time. The balance amount of Rs.50,000/- is stated as development charges which is probably notrefundable as it is a reimbursement claimed by the TNEB. We do notthink we should interfere with the finding of the Tribunal in appealbecause Rs. 50,000/- was rightly allowed and balance Rs. 60,000/-being refundable is assessable under Section 41(1) of the I.T. Actwhen refund is received. We therefore dismiss the appeal filed bythe revenue. (C.N.RAMACHANDRAN NAIR)Judge. (C.K. ABDUL REHIM) Judge.