Itr/197/1997 Of The Commissioner Of Income Tax v. M/S Bhageeratha Engineering Ltd

IN THE HIGH COURT OF KERALA AT ERNAKULAMPRESENT THE HONOURABLE MR.JUSTICE S.V.BHATTI & THE HONOURABLE MR. JUSTICE BECHU KURIAN THOMASTHURSDAY, THE 24 DAY OF JUNE 2021 / 3RD ASHADHA, 1943ITR NO. 194 OF 1997 AGAINST THE ORDER/JUDGMENT IN ITA 164/1992 OF I.T.A.TRIBUNAL,COCHINBENCH, ERNAKULAM PETITIONER/S: THE COMMISSIONER OF INCOME TAXCOCHIN. BY ADV SRI.P.K.R.MENON(SR.),SR.COUNSEL FOR IT BY ADV CHRISTOPHER ABRAHAM, INCOME TAX DEPARTMENT RESPONDENT/S: M/S BHAGEERATHA ENGINEERING LTD.,132, PANAMPILLY AVENUE, COCHIN-16. BY ADVS.SMT.P.ANITHASMT.P.ANITHASMT.R.S.GEETHA, SR. ADV. T SREEDHARANSRI.V.B.UNNIRAJ OTHER PRESENT: SC CHRISTOPHER ABRAHAM., SR ADV. T. SREEDHARAN THIS INCOME TAX REFERENCE HAVING COME UP FOR HEARING ON24.06.2021, ALONG WITH ITR.193/1997, 195/1997 AND CONNECTED CASES, THECOURT ON THE SAME DAY DELIVERED THE FOLLOWING: ITR Nos.193 to 197/1997 -2- IN THE HIGH COURT OF KERALA AT ERNAKULAMPRESENT THE HONOURABLE MR.JUSTICE S.V.BHATTI & THE HONOURABLE MR. JUSTICE BECHU KURIAN THOMASTHURSDAY, THE 24 DAY OF JUNE 2021 / 3RD ASHADHA, 1943 ITR NO. 193 OF 1997 AGAINST THE ORDER/JUDGMENT IN ITA 404/1991 OF I.T.A.TRIBUNAL,COCHIN BENCH, ERNAKULAM PETITIONER/S: THE COMMISSIONER OF INCOME TAX,COCHIN. BY ADVS.SRI.P.K.R.MENON(SR.),SR.COUNSEL FOR ITCHRISTOPHER ABRAHAM, INCOME TAX DEPARTMENT RESPONDENT/S: M/S BHAGEERATHA ENGINEERING LTD.,132, PANAMPILLY AVENUE, COCHIN-16. BY ADVS.SMT.P.ANITHASMT.P.ANITHASMT.R.S.GEETHASRI.V.B.UNNIRAJ, SR. ADV. T SREEDHARAN THIS INCOME TAX REFERENCE HAVING COME UP FOR HEARING ON24.06.2021, ALONG WITH ITR.194/1997 AND CONNECTED CASES, THE COURT ON THESAME DAY DELIVERED THE FOLLOWING: ITR Nos.193 to 197/1997 -3- IN THE HIGH COURT OF KERALA AT ERNAKULAMPRESENT THE HONOURABLE MR.JUSTICE S.V.BHATTI & THE HONOURABLE MR. JUSTICE BECHU KURIAN THOMASTHURSDAY, THE 24 DAY OF JUNE 2021 / 3RD ASHADHA, 1943 ITR NO. 195 OF 1997 AGAINST THE ORDER/JUDGMENT IN ITA 767/1992 OF I.T.A.TRIBUNAL,COCHIN BENCH, ERNAKULAM PETITIONER/S: THE COMMISSIONER OF INCOME TAX,COCHIN. BY ADVS.SRI.P.K.R.MENON(SR.),SC FOR ITCHRISTOPHER ABRAHAM, INCOME TAX DEPARTMENT RESPONDENT/S: M/S BHAGEERATHA ENGINEERING LTD.,132, PANAMPILLY AVENUE, COCHIN-16. BY ADVS.SMT.P.ANITHASMT.P.ANITHASMT.R.S.GEETHASRI.V.B.UNNIRAJ, SR. ADV. T SREEDHARAN THIS INCOME TAX REFERENCE HAVING COME UP FOR HEARING ON24.06.2021, ALONG WITH ITR.194/1997 AND CONNECTED CASES, THE COURT ON THESAME DAY DELIVERED THE FOLLOWING: ITR Nos.193 to 197/1997 -4- IN THE HIGH COURT OF KERALA AT ERNAKULAMPRESENT THE HONOURABLE MR.JUSTICE S.V.BHATTI & THE HONOURABLE MR. JUSTICE BECHU KURIAN THOMASTHURSDAY, THE 24 DAY OF JUNE 2021 / 3RD ASHADHA, 1943 ITR NO. 196 OF 1997 AGAINST THE ORDER/JUDGMENT IN ITA 579/1995 OF I.T.A.TRIBUNAL,COCHIN BENCH, ERNAKULAM PETITIONER/S: THE COMMISSIONER OF INCOME TAX ,COCHIN. BY ADVS.SRI.P.K.R.MENON(SR.),SC FOR ITCHRISTOPHER ABRAHAM, INCOME TAX DEPARTMENT RESPONDENT/S: M/S BHAGEERATHA ENGINEERING LTD.,132, PANAMPILLY AVENUE, COCHIN-16. BY ADVS.SMT.P.ANITHASMT.P.ANITHASMT.R.S.GEETHASRI.V.B.UNNIRAJ, SR. ADV. T SREEDHARAN THIS INCOME TAX REFERENCE HAVING COME UP FOR HEARING ON24.06.2021, ALONG WITH ITR.194/1997 AND CONNECTED CASES, THE COURT ON THESAME DAY DELIVERED THE FOLLOWING: ITR Nos.193 to 197/1997 -5- IN THE HIGH COURT OF KERALA AT ERNAKULAMPRESENT THE HONOURABLE MR.JUSTICE S.V.BHATTI & THE HONOURABLE MR. JUSTICE BECHU KURIAN THOMASTHURSDAY, THE 24 DAY OF JUNE 2021 / 3RD ASHADHA, 1943 ITR NO. 197 OF 1997 AGAINST THE ORDER/JUDGMENT IN ITA 929/1909 OF I.T.A.TRIBUNAL,COCHIN BENCH, ERNAKULAM PETITIONER/S: THE COMMISSIONER OF INCOME TAX,COCHIN. BY ADVS.SRI.P.K.R.MENON(SR.),SC FOR ITCHRISTOPHER ABRAHAM, INCOME TAX DEPARTMENT RESPONDENT/S: M/S BHAGEERATHA ENGINEERING LTD.,132, PANAMPILLY AVENUE, COCHIN-16. BY ADVS.SMT.P.ANITHASMT.P.ANITHASMT.R.S.GEETHASRI.V.B.UNNIRAJ, SR. ADV. T SREEDHARAN ITR Nos.193 to 197/1997 -5- IN THE HIGH COURT OF KERALA AT ERNAKULAMPRESENT THE HONOURABLE MR.JUSTICE S.V.BHATTI & THE HONOURABLE MR. JUSTICE BECHU KURIAN THOMASTHURSDAY, THE 24 DAY OF JUNE 2021 / 3RD ASHADHA, 1943 ITR NO. 197 OF 1997 AGAINST THE ORDER/JUDGMENT IN ITA 929/1909 OF I.T.A.TRIBUNAL,COCHIN BENCH, ERNAKULAM PETITIONER/S: THE COMMISSIONER OF INCOME TAX,COCHIN. BY ADVS.SRI.P.K.R.MENON(SR.),SC FOR ITCHRISTOPHER ABRAHAM, INCOME TAX DEPARTMENT RESPONDENT/S: M/S BHAGEERATHA ENGINEERING LTD.,132, PANAMPILLY AVENUE, COCHIN-16. BY ADVS.SMT.P.ANITHASMT.P.ANITHASMT.R.S.GEETHASRI.V.B.UNNIRAJ, SR. ADV. T SREEDHARAN THIS INCOME TAX REFERENCE HAVING COME UP FOR HEARING ON24.06.2021, ALONG WITH ITR.194/1997 AND CONNECTED CASES, THE COURT ON THESAME DAY DELIVERED THE FOLLOWING: ITR Nos.193 to 197/1997 O R D E R [ITRNos.194/1997, 193/1997, 195/1997, 196/1997, 197/1997] S.V. Bhatti, J. These five I.T.Rs are before this Court by reference underSection 256(1) of the Income Tax Act, 1961 (for short 'the Act').The I.T.Rs relate to Assessment Years 1987-88 to 1991-92. TheI.T.Rs have been listed for hearing along with I.T.R. No.264/1997of the same assessee for the year 1986-87. By a separatejudgment in I.T.R. No.264/1997 questions have been answeredin favour of assessee. The learned Counsel appearing for theDepartment and the Assessee would state that the mainquestion in I.T.R. No.264/1997 is adoption of accountingstandards, treatment of deferred payment arrangement etc.The questions of law now referred in the I.T.Rs substantiallycover the answer given by this Court on principle points of ITR Nos.193 to 197/1997 reference in I.T.R. No.264/1997 as well. By referring to the answers given in I.T.R. No.264/1997,the applicable questions of law are answered in favour of theassessee and against the Revenue. A few other questions arenot pressed and after perusing the record, we are of the viewthat these questions in fact having regard to the findings of factrecorded by the Tribunal do not arise for our consideration.The point is answered in favour of the assessee and againstthe Revenue. I.T.R. Nos.193 to 197/1997 are dismissed.Registry shall send the certified copy of this judgment to theIncome Tax Appellate Tribunal. Sd/-S.V.BHATTIJUDGESd/-BECHU KURIAN THOMASJUDGE ITR Nos.193 to 197/1997 APPENDIX OF ITR 193/1997 PETITIONER ANNEXURE ANNEXURE A1COPY OF ASSESSMENT ORDER FOR ASSESSMENT YEAR 1987-88 DATED 12/03/1990.1987-88 DATED 12/03/1990. ANNEXURE A2COPY OF ASSESSMENT ORDER FOR ASSESSMENT YEAR 1988-89 DATED 27/03/1991.1988-89 DATED 27/03/1991. ANNEXURE A3COPY OF ASSESSMENT ORDER FOR ASSESSMENT YEAR 1989-90 DATED 31/03/1992.1989-90 DATED 31/03/1992. ANNEXURE A4COPY OF ASSESSMENT ORDER FOR ASSESSMENT YEAR 1990-91 DATED 19/03/1993.1990-91 DATED 19/03/1993. ANNEXURE A5COPY OF ASSESSMENT ORDER FOR ASSESSMENT YEAR 1991-92 DATED 23/01/1994.1991-92 DATED 23/01/1994. ANNEXURE B1COPY OF ORDER OF THE COMMISSIONER OF INCOME TAX(APPEALS) FOR THE ASSESSMENT YEAR 1987-88 DATED 31/01/1991.(APPEALS) FOR THE ASSESSMENT YEAR 1987-88 DATED 31/01/1991. ANNEXURE B2COPY OF ORDER OF THE COMMISSIONER OF INCOME TAX(APPEALS) FOR THE ASSESSMENT YEAR 1988-89 DATED 18/02/1991.(APPEALS) FOR THE ASSESSMENT YEAR 1988-89 DATED 18/02/1991. ANNEXURE B3COPY OF ORDER OF THE COMMISSIONER OF INCOME TAX(APPEALS) FOR THE ASSESSMENT YEAR 1989-90 DATED 07/09/1992.(APPEALS) FOR THE ASSESSMENT YEAR 1989-90 DATED 07/09/1992. ANNEXURE B4COPY OF ORDER OF THE COMMISSIONER OF INCOME TAX(APPEALS) FOR THE ASSESSMENT YEAR 1990-91 DATED 07/06/1993.(APPEALS) FOR THE ASSESSMENT YEAR 1990-91 DATED 07/06/1993. ANNEXURE B5COPY OF ORDER OF THE COMMISSIONER OF INCOME TAX(APPEALS) FOR THE ASSESSMENT YEAR 1991-92 DATED 18/11/1994.(APPEALS) FOR THE ASSESSMENT YEAR 1991-92 DATED 18/11/1994. ITR Nos.193 to 197/1997 ANNEXURE C -9- COPY OF THE ORDER OF THE TRIBUNAL DATED 29/03/1995. ITR Nos.193 to 197/1997 APPENDIX OF ITR 195/1997 ANNEXURE B3COPY OF ORDER OF THE COMMISSIONER OF INCOME TAX(APPEALS) FOR THE ASSESSMENT YEAR 1989-90 DATED 07/09/1992.(APPEALS) FOR THE ASSESSMENT YEAR 1989-90 DATED 07/09/1992. ANNEXURE B4COPY OF ORDER OF THE COMMISSIONER OF INCOME TAX(APPEALS) FOR THE ASSESSMENT YEAR 1990-91 DATED 07/06/1993.(APPEALS) FOR THE ASSESSMENT YEAR 1990-91 DATED 07/06/1993. ANNEXURE B5COPY OF ORDER OF THE COMMISSIONER OF INCOME TAX(APPEALS) FOR THE ASSESSMENT YEAR 1991-92 DATED 18/11/1994.(APPEALS) FOR THE ASSESSMENT YEAR 1991-92 DATED 18/11/1994. ITR Nos.193 to 197/1997 ANNEXURE C -9- COPY OF THE ORDER OF THE TRIBUNAL DATED 29/03/1995. ITR Nos.193 to 197/1997 APPENDIX OF ITR 195/1997 PETITIONER ANNEXURE ANNEXURE A1COPY OF ASSESSMENT ORDER FOR ASSESSMENT YEAR 1987-88 DATED 12/03/1990.1987-88 DATED 12/03/1990. ANNEXURE A2COPY OF ASSESSMENT ORDER FOR ASSESSMENT YEAR 1988-89 DATED 27/03/1991.1988-89 DATED 27/03/1991. ANNEXURE A3COPY OF ASSESSMENT ORDER FOR ASSESSMENT YEAR 1989-90 DATED 31/03/1992.1989-90 DATED 31/03/1992. ANNEXURE A4COPY OF ASSESSMENT ORDER FOR ASSESSMENT YEAR 1990-91 DATED 19/03/1993.1990-91 DATED 19/03/1993. ANNEXURE A5COPY OF ASSESSMENT ORDER FOR ASSESSMENT YEAR 1991-92 DATED 23/01/1994.1991-92 DATED 23/01/1994. ANNEXURE B1COPY OF ORDER OF THE COMMISSIONER OF INCOME TAX(APPEALS) FOR THE ASSESSMENT YEAR 1987-88 DATED 31/01/1991.(APPEALS) FOR THE ASSESSMENT YEAR 1987-88 DATED 31/01/1991. ANNEXURE B2COPY OF ORDER OF THE COMMISSIONER OF INCOME TAX(APPEALS) FOR THE ASSESSMENT YEAR 1988-89 DATED 18/02/1991.(APPEALS) FOR THE ASSESSMENT YEAR 1988-89 DATED 18/02/1991. ANNEXURE B3COPY OF ORDER OF THE COMMISSIONER OF INCOME TAX(APPEALS) FOR THE ASSESSMENT YEAR 1989-90 DATED 07/09/1992.(APPEALS) FOR THE ASSESSMENT YEAR 1989-90 DATED 07/09/1992. ANNEXURE B4COPY OF ORDER OF THE COMMISSIONER OF INCOME TAX(APPEALS) FOR THE ASSESSMENT YEAR 1990-91 DATED 07/06/1993.(APPEALS) FOR THE ASSESSMENT YEAR 1990-91 DATED 07/06/1993. ANNEXURE B5COPY OF ORDER OF THE COMMISSIONER OF INCOME TAX(APPEALS) FOR THE ASSESSMENT YEAR 1991-92 DATED 18/11/1994.(APPEALS) FOR THE ASSESSMENT YEAR 1991-92 DATED 18/11/1994. ITR Nos.193 to 197/1997 ANNEXURE C -11- COPY OF THE ORDER OF THE TRIBUNAL DATED 29/03/1995. ITR Nos.193 to 197/1997 APPENDIX OF ITR 196/1997 PETITIONER ANNEXURE ANNEXURE A1COPY OF ASSESSMENT ORDER FOR ASSESSMENT YEAR 1987-88 DATED 12/03/1990.1987-88 DATED 12/03/1990. ANNEXURE A2COPY OF ASSESSMENT ORDER FOR ASSESSMENT YEAR 1988-89 DATED 27/03/1991.1988-89 DATED 27/03/1991. ANNEXURE A3COPY OF ASSESSMENT ORDER FOR ASSESSMENT YEAR 1989-90 DATED 31/03/1992.1989-90 DATED 31/03/1992. ANNEXURE A4COPY OF ASSESSMENT ORDER FOR ASSESSMENT YEAR 1990-91 DATED 19/03/1993.1990-91 DATED 19/03/1993. ANNEXURE A5COPY OF ASSESSMENT ORDER FOR ASSESSMENT YEAR 1991-92 DATED 23/01/1994.1991-92 DATED 23/01/1994. ANNEXURE B1COPY OF ORDER OF THE COMMISSIONER OF INCOME TAX(APPEALS) FOR THE ASSESSMENT YEAR 1987-88 DATED 31/01/1991.(APPEALS) FOR THE ASSESSMENT YEAR 1987-88 DATED 31/01/1991. ANNEXURE B2COPY OF ORDER OF THE COMMISSIONER OF INCOME TAX(APPEALS) FOR THE ASSESSMENT YEAR 1988-89 DATED 18/02/1991.(APPEALS) FOR THE ASSESSMENT YEAR 1988-89 DATED 18/02/1991. ANNEXURE B3COPY OF ORDER OF THE COMMISSIONER OF INCOME TAX(APPEALS) FOR THE ASSESSMENT YEAR 1989-90 DATED 07/09/1992.(APPEALS) FOR THE ASSESSMENT YEAR 1989-90 DATED 07/09/1992. ANNEXURE B4COPY OF ORDER OF THE COMMISSIONER OF INCOME TAX(APPEALS) FOR THE ASSESSMENT YEAR 1990-91 DATED 07/06/1993.(APPEALS) FOR THE ASSESSMENT YEAR 1990-91 DATED 07/06/1993. ANNEXURE B5COPY OF ORDER OF THE COMMISSIONER OF INCOME TAX(APPEALS) FOR THE ASSESSMENT YEAR 1991-92 DATED 18/11/1994.(APPEALS) FOR THE ASSESSMENT YEAR 1991-92 DATED 18/11/1994. ITR Nos.193 to 197/1997 ANNEXURE C -13- COPY OF THE ORDER OF THE TRIBUNAL DATED 29/03/1995. ITR Nos.193 to 197/1997 APPENDIX OF ITR 197/1997 PETITIONER ANNEXURE ANNEXURE DTRUE COPY OF THE ORDER OF THE TRIBUNAL DATED 22/11/2001.22/11/2001. ANNEXURE B3COPY OF ORDER OF THE COMMISSIONER OF INCOME TAX(APPEALS) FOR THE ASSESSMENT YEAR 1989-90 DATED 07/09/1992.(APPEALS) FOR THE ASSESSMENT YEAR 1989-90 DATED 07/09/1992. ANNEXURE B4COPY OF ORDER OF THE COMMISSIONER OF INCOME TAX(APPEALS) FOR THE ASSESSMENT YEAR 1990-91 DATED 07/06/1993.(APPEALS) FOR THE ASSESSMENT YEAR 1990-91 DATED 07/06/1993. ANNEXURE B5COPY OF ORDER OF THE COMMISSIONER OF INCOME TAX(APPEALS) FOR THE ASSESSMENT YEAR 1991-92 DATED 18/11/1994.(APPEALS) FOR THE ASSESSMENT YEAR 1991-92 DATED 18/11/1994. ITR Nos.193 to 197/1997 ANNEXURE C -13- COPY OF THE ORDER OF THE TRIBUNAL DATED 29/03/1995. ITR Nos.193 to 197/1997 APPENDIX OF ITR 197/1997 PETITIONER ANNEXURE ANNEXURE DTRUE COPY OF THE ORDER OF THE TRIBUNAL DATED 22/11/2001.22/11/2001. ANNEXURE A1COPY OF ASSESSMENT ORDER FOR ASSESSMENT YEAR 1987-88 DATED 12/03/1990.1987-88 DATED 12/03/1990. ANNEXURE A2COPY OF ASSESSMENT ORDER FOR ASSESSMENT YEAR 1988-89 DATED 27/03/1991.1988-89 DATED 27/03/1991. ANNEXURE A3COPY OF ASSESSMENT ORDER FOR ASSESSMENT YEAR 1989-90 DATED 31/03/1992.1989-90 DATED 31/03/1992. ANNEXURE A4COPY OF ASSESSMENT ORDER FOR ASSESSMENT YEAR 1990-91 DATED 19/03/1993.1990-91 DATED 19/03/1993. ANNEXURE A5COPY OF ASSESSMENT ORDER FOR ASSESSMENT YEAR 1991-92 DATED 23/01/1994.1991-92 DATED 23/01/1994. ANNEXURE B1COPY OF ORDER OF THE COMMISSIONER OF INCOME TAX(APPEALS) FOR THE ASSESSMENT YEAR 1987-88 DATED 31/01/1991.(APPEALS) FOR THE ASSESSMENT YEAR 1987-88 DATED 31/01/1991. ANNEXURE B2COPY OF ORDER OF THE COMMISSIONER OF INCOME TAX(APPEALS) FOR THE ASSESSMENT YEAR 1988-89 DATED 18/02/1991.(APPEALS) FOR THE ASSESSMENT YEAR 1988-89 DATED 18/02/1991. ANNEXURE B3COPY OF ORDER OF THE COMMISSIONER OF INCOME TAX(APPEALS) FOR THE ASSESSMENT YEAR 1989-90 DATED 07/09/1992.(APPEALS) FOR THE ASSESSMENT YEAR 1989-90 DATED 07/09/1992. ANNEXURE B4COPY OF ORDER OF THE COMMISSIONER OF INCOME TAX(APPEALS) FOR THE ASSESSMENT YEAR 1990-91 DATED 07/06/1993.(APPEALS) FOR THE ASSESSMENT YEAR 1990-91 DATED 07/06/1993. ITR Nos.193 to 197/1997 -15- ITR Nos.193 to 197/1997 APPENDIX OF ITR 194/1997 PETITIONER ANNEXURE ANNEXURE A1COPY OF ASSESSMENT ORDER FOR ASSESSMENT YEAR 1987-88 DATED 12/03/1990.1987-88 DATED 12/03/1990. ANNEXURE A2COPY OF ASSESSMENT ORDER FOR ASSESSMENT YEAR 1988-89 DATED 27/03/1991.1988-89 DATED 27/03/1991. ANNEXURE A3COPY OF ASSESSMENT ORDER FOR ASSESSMENT YEAR 1989-90 DATED 31/03/1992.1989-90 DATED 31/03/1992. ANNEXURE A4COPY OF ASSESSMENT ORDER FOR ASSESSMENT YEAR 1990-91 DATED 19/03/1993.1990-91 DATED 19/03/1993. ANNEXURE A5COPY OF ASSESSMENT ORDER FOR ASSESSMENT YEAR 1991-92 DATED 23/01/1994.1991-92 DATED 23/01/1994. ANNEXURE B1COPY OF ORDER OF THE COMMISSIONER OF INCOME TAX(APPEALS) FOR THE ASSESSMENT YEAR 1987-88 DATED 31/01/1991.(APPEALS) FOR THE ASSESSMENT YEAR 1987-88 DATED 31/01/1991. ANNEXURE B2COPY OF ORDER OF THE COMMISSIONER OF INCOME TAX(APPEALS) FOR THE ASSESSMENT YEAR 1988-89 DATED 18/02/1991.(APPEALS) FOR THE ASSESSMENT YEAR 1988-89 DATED 18/02/1991. ANNEXURE B3COPY OF ORDER OF THE COMMISSIONER OF INCOME TAX(APPEALS) FOR THE ASSESSMENT YEAR 1989-90 DATED 07/09/1992.(APPEALS) FOR THE ASSESSMENT YEAR 1989-90 DATED 07/09/1992. ANNEXURE B4COPY OF ORDER OF THE COMMISSIONER OF INCOME TAX(APPEALS) FOR THE ASSESSMENT YEAR 1990-91 DATED 07/06/1993.(APPEALS) FOR THE ASSESSMENT YEAR 1990-91 DATED 07/06/1993. ANNEXURE B5COPY OF ORDER OF THE COMMISSIONER OF INCOME TAX(APPEALS) FOR THE ASSESSMENT YEAR 1991-92 DATED 18/11/1994.(APPEALS) FOR THE ASSESSMENT YEAR 1991-92 DATED 18/11/1994. ITR Nos.193 to 197/1997 ANNEXURE C -17- COPY OF THE ORDER OF THE TRIBUNAL DATED 29/03/1995.