Ramachandran Nair,J v. The Vaikundam Rubber Co. Ltd.,249 I.t.r. 19,Wherein The Issue Has Been Answered In Favour Of The Assessee. In Factreassessments Were Made To Bring To Tax Intere

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE P.N.RAVINDRAN MONDAY, THE 5TH JANUARY 2009 / 15TH POUSHA 1930 ITR.No. 89 of 1999() -------------------- AGAINST THE ORDER IN RA.201/COCH/97 IN ITA.282/COCH/1993 of I.T.A.TRIBUNAL,COCHIN BENCH .................... APPLICANT(S): -------------- THE COMMISSIONER OF INCOME TAX, TRIVANDRUM. BY ADV. SRI.P.K.R.MENON(SR.),SR.COUNSEL FOR IT SRI. JOSE JOSEPH RESPONDENT(S): --------------- THE VAIKUNDAM RUBBER CO.LTD., TRIVANDRUM. BY ADV. SRI.K.VINOD CHANDRAN THIS TAX REFERENCE HAVING BEEN FINALLY HEARD ON 05/01/2009, ALONG WITH ITR NO. 90 TO 96 OF 1999 THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C .N. RAMACHANDRAN NAIR &P.N. RAVINDRAN, JJ. -------------------------------------------- -------------------------------------------- Dated this the 5th day of January, 2009 JUDGMENT Ramachandran Nair,J. In all the Reference cases, first six of which are at the instance ofthe revenue, and the remaining two at the instance of the assessee, thequestion raised is whether reassessments completed under Section 147of the I.T. Act for the assessment years 1967-68 to 1974-75 are timebarred. The Tribunal relying on Section 150(2) of the Act allowedassessee's case for the first six years and for the remaining two yearsthe Tribunal upheld the reassessments as within time. Therefore thequestion referred in the Reference Cases is one and the same, that is,whether all the reassessments involved in the particular years are barredby limitation or not. Counsel for both sides agree that the very sameissue came up before this Court between the same parties in decision inCIT V. THE VAIKUNDAM RUBBER CO. LTD.,249 I.T.R. 19,wherein the issue has been answered in favour of the assessee. In factreassessments were made to bring to tax interest on additionalcompensation awarded in land acquisition cases. In the original assessments, interest was assessed on receipt basis. However, based onanother decision of this Court, department made reassessments toassess interest on accural basis. However, this Court in assessee's casefor subsequent years that is 1975-76 to 1997-78 held that limitationsaved under Section 150(2) is to be computed with reference to theorder appealed against which in this case is the order of the Tribunal on1.3.1984. Going by the dates of reassessments given in the referencecases, reassessments are made only on 7.9.1991 which is beyond fouryears from 1.3.1984. In fact it is to be seen that even reassessmentnotices were served beyond the time limit. Consequently we dispose ofthe reference cases by answering the question reference in all the casesin favour of the assessee and against the revenue. A copy of this judgment, under the seal of the High Court andsignature of Registrar-General, shall be forwarded to the Income taxAppellate Tribunal, Cochin Bench, for issuing consequential orders. (C.N.RAMACHANDRAN NAIR)Judge.Judge. (P.N. RAVINDRAN) Judge.