This Court In Kerala State Electricity Board, Thiruvananthapuram v. Income Tax (It)-3 V. Union Bank Of India And Others (2019 (5

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE A.M.SHAFFIQUE & THE HONOURABLE MR.JUSTICE N.ANIL KUMAR THURSDAY, THE 26TH DAY OF SEPTEMBER 2019 / 4TH ASWINA, 1941 ITA.No.143 OF 2019 AGAINST THE ORDER OF INCOME TAX APPELLATE TRIBUNAL IN ITA 180/2017DATED 10-10-2018,COCHIN BENCH APPELLANT/APPELLANT/RESPONDENT: THE PRINCIPAL COMMISSIONER OF INCOME TAX-2,MUMBAI BY ADV. SRI.CHRISTOPHER ABRAHAM, INCOME TAX DEPARTMENT RESPONDENT/RESPONDENT/APPELLANT: STATE BANK OF INDIA(SUCCESSOR TO STATE BANK OF TRAVANCORE), CORPORATE CENTRE, STATE BANK BHAVAN, MADAM CAMA ROAD, NARIMAN POINT, MUMBAI - 400021 (PAN - ) CENTRE, STATE BANK BHAVAN, MADAM CAMA ROAD, NARIMAN BY ADV. SRI.A.KUMAR THIS INCOME TAX APPEAL HAVING BEEN FINALLY HEARD ON26.09.2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: JUDGMENT Dated this the 26th day of September 2019 SHAFFIQUE, J This appeal is filed by the Department inter alia raising the followingsubstantial question of law: “Whether on the facts and in the circumstances of the case,the Hon'ble Tribunal was correct in law, in holding that theprovisions of section 115JB of the Income Tax Act, 1961 are notapplicable to assessee to whom the proviso to sub-section (2) ofSection 211 of the Companies Act, 1956 applies i.e., companywhich is not required to prepare its profit and loss account inaccordance with Part II and Part III of Schedule VI of the CompaniesAct, 1956, without appreciating that under subsection (2) ofsection 115 JB of the Income Tax Act, 1961, every company ismandatorily required to prepare its profit and loss account inaccordance with the provisions of Part II and III of Schedule VI ofthe Companies Act, 1956 for Income Tax purpose?” 2.The issue has already been decided by a Division Bench of this Court in Kerala State Electricity Board, Thiruvananthapuram v. Dy. Commissioner of Income Tax, Circle 1,Thiruvananthapuram (2010 (4) KHC 842), after interpreting theprovisions under Section 115JB, against the Revenue. The saiddecision has been re-iterated by a Division Bench of the Bombay HighCourt in The Commissioner of Income Tax-LTU, Commissioner of Income Tax (IT)-3 v. Union Bank of India and Others (2019 (5) ITA.No.143/2019 TMI 355 – Bombay High Court), after referring to the decision in KSEB(supra) In the light of the aforesaid pronouncements by the Kerala HighCourt as well as the Bombay High Court, the question of law raised bythe Revenue does not arise, which is answered against them.The Income Tax Appeal is dismissed. Sd/-A.M.SHAFFIQUEJUDGESd/-N.ANIL KUMARkpTrue copyJUDGE P.A. To Judge ITA.No.143/2019 APPENDIX APPELLANT'S EXHIBITS: ANNEXURE A: TRUE COPY OF THE ORDER OF THE ASSESSING OFFICER U/S 143(3) DATED 22.12.2008. ANNEXURE B: TRUE COPY OF THE ORDER OF THE COMMISSIONER OF INCOME TAX(APPEALS) DATED:24/03/2017. ANNEXURE C:TRUE COPY OF THE ORDER OF THE INCOME TAX APPELLATE TRIBUNAL, COCHIN BENCH IN ITA NO.180/COCH/2017 DATED: 10/10/2018.