Itr/167/1998 Of M/S.appollo Tyres Ltd v. The Commissioner Of Income Tax

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT:- THE HONOURABLE MR.JUSTICE K.VINOD CHANDRAN & THE HONOURABLE MR. JUSTICE ASHOK MENON TUESDAY, THE 27TH DAY OF NOVEMBER 2018 / 6TH AGRAHAYANA, 1940 I.T.R.No.167 of 1998 ARISING OUT OF R.A.NO.234(COCH)/95 I.T.A.NO.339(COCH)/1993OF THE INCOME TAX APPELLATE TRIBUNAL, COCHIN BENCH, COCHIN APPLICANT: M/S.APPOLLO TYRES LTD.,COCHIN. BY ADVS.SRI.P.BALACHANDRAN (SR.)SRI.ABRAHAM JOSEPH MARKOSSRI.HARAN THOMAS GEORGESRI.ISAAC THOMASSRI.JOSEPH MARKOSE (SR.)SRI.V.ABRAHAM MARKOS RESPONDENT: THE COMMISSIONER OF INCOME TAX,COCHIN. BY ADVS.SRI.P.K.R.MENON, SENIOR COUNSEL FOR GOI (TAXES)SRI JOSE JOSEPH, STANDING COUNSEL FOR GOI (TAXES) THIS INCOME TAX REFERENCE HAVING BEEN FINALLY HEARD ON 27.11.2018,THE COURT ON THE SAME DAY PASSED THE FOLLOWING: Vinod Chandran, J: ORDER The reference arises at the instance of theassessee, for the year 1989-90. The following questions oflaw are raised: "1.Whether on a proper construction of the provisionsof section 115J(1) and 115J(2), the Tribunal didnot err in law in not reducing the amount ofunabsorbedandadjustedcarriedforwarddepreciation and losses of earlier years by a sumof Rs.1,83,94,192/- representing the adjusted bookprofits subjected to tax under the provisions ofsection 115J? 2. Whether on the facts and in the circumstances ofthe case the carry forward of the unabosrbeddepreciation and the losses of the earlier yearsadjustable against the current year's income,other than the deemed total income computedu/s.115J, are required to be reduced by the amountof such deemed income and only the balance amountis to be carried forward to later years? 3. Whether the income from other sources was liableto be assessed separately without setting off ofthe unabsorbed depreciation against such income?” 2. The questions of law are answered against theassessee and in favour of the Revenue, by virtue of thejudgment of the Hon'ble Supreme Court in Karnataka SmallScale Industries Development Corporation Ltd.v. C.I.T.[(2002) 258 ITR 258 (SC)]. The questions of law referred are answeredaccordingly. Sd/- K.VINOD CHANDRAN JUDGE Vku/- Sd/- ASHOK MENON JUDGE APPLICANT'S ANNEXURES: ANNEXURE A ANNEXURE B ANNEXURE C Vku/- APPENDIX TRUE COPY OF THE ASSESSMENT ORDER DATED 7.2.1992 TRUE COPY OF THE APPELLATE ORDER OF GROUND OF DECISION DATED 12.2.93 TRUE COPY OF THE ORDER IN ITA.339(COCH)/93 DATED 25.5.95. [ true copy ]