Dismissed

Commissioner of Income Tax,Trichur v. Kerala State Financial Enterprises Ltd.

Kerala HC4 Mar 2009ITA/38/2009

Case brief

AI extract

What is this about?

ITAT bench dismissed income tax appeals filed by the Commissioner of Income Tax without deciding substantive merits, directing Registry to inform the assessee. Court held that while appeals are disposed of at admission stage, the assessee is not entitled to rectification regarding interest tax refunds for specified years to avoid double taxation.

What did the court decide?

Appeals dismissed without going into correctness of Tribunal decision; no rectification granted for years 2005-06 and 2006-07.

Commissioner of Income Tax,Trichur Vs Kerala State Financial… — Income Tax | Kerala HC (2009)

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IN THE HIGH COURT OF KERALA AT ERNAKULAM

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PRESENT :

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THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR &

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THE HONOURABLE MR. JUSTICE K.SURENDRA MOHAN

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WEDNESDAY, THE 4TH MARCH 2009 / 13TH PHALGUNA 1930

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ITA.No. 38 of 2009() -------------------ITA.650/COCH/2007 of I.T.A.TRIBUNAL,COCHIN BENCH

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APPELLANT:

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THE COMMISSIONER OF INCOME TAX, THRISSUR.

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BY ADV. SRI.JOSE JOSEPH, SC, FOR INCOME TAX

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RESPONDENT(S): RESPONDENT:

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M/S.KERALA STATE FINANCIAL ENTERPRISES LTD., 'BHADRATHA', MUSEUM ROAD, THRISSUR.

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THIS INCOME TAX APPEAL HAVING BEEN FINALLY HEARD ON 04/03/2009 ALONG WITH ITA NOS. 39 TO 41/2009 THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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C .N. RAMACHANDRAN NAIR &

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K. SURENDRA MOHAN, JJ.

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I.T.A. Nos. 38 to 41 OF 2009

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- - - - Dated this the 4th day of March, 2009

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JUDGMENT

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Ramachandran Nair,J.

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The question raised is whether the Tribunal was justified in cancelling rectification order issued under Section 154 of the I.T. Act by the assessing officer withdrawing the deduction granted towards interest tax paid on finance charges received in hire purchase transactions. The issue arose because of the divergent orders issued by different authorities in interest tax assessments. The demand of interest tax paid on finance charges was allowed in I.T. assessment by way of rectification of original assessment, when the assessee in fact paid the interest tax on finance charges. However, the assessee successfully contested the interest tax assessment on finance charges and got it deleted. Thereafter income tax assessment was again rectified by the assessing officer withdrawing the deduction granted on interest tax on finance charges which the assessee ceased to be entitled by virtue of the order of the Tribunal in the interest tax appeals filed by the assessee. It is this order that is cancelled by the Tribunal on the ground that Section 154 is not

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applicable. In the course of hearing, standing counsel appearing for

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the appellants submitted that the assessee has paid tax on the interest tax amount refunded to it with interest for the relevant assessment years which are 2005-06 and 2006-07. If we allow appeals without rectification of assessments for the years 2005-06 and 2006-07 to cancel the assessment of refund amounts, there will

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be double taxation of the same amount. In this view of the matter,

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we dismiss the departmental appeals without going into the correctness of the decision of the Tribunal. However, we make it clear that the assessee is not entitled to rectification or modification of the assessments for the years ;2005-06 and 2006-07 pertaining to

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assessment of refund of interest tax. Since appeals are disposed of

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at the admission stage, there will be direction to the Registry to forward a copy of this judgment to the respondent-assessee for their information.

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(C.N.RAMACHANDRAN NAIR) Judge.

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(K. SURENDRA MOHAN) Judge.

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Commissioner of Income Tax,Trichur v. Kerala State Financial Enterprises Ltd.

Case brief

What is this about?

What did the court decide?

Commissioner of Income Tax,Trichur v. Kerala State Financial Enterprises Ltd.

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

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