Disposed

The Commissioner of Incometax, v. G.Oommen

Kerala HC4 Dec 2018ITA/301/2002

Case brief

AI extract

What is this about?

The High Court allowed the Revenue's appeal against the AIT's deletion of unexplained credit additions. It held the limitation period applies to pre-amendment years, ruled wealth tax finality does not estoppel, and remanded two unexplained credit matters and Annamma Thomas' case to the Tribunal.

What did the court decide?

Appeal allowed; assessment restored; matter remanded to Tribunal for consideration of specific unexplained credits and estoppel issue.

The Commissioner of Incometax, Vs G.Oommen — Income Tax | Kerala HC (2018)

¶1

IN THE HIGH COURT OF KERALA AT ERNAKULAM

¶2

PRESENT

¶3

THE HONOURABLE MR.JUSTICE K.VINOD CHANDRAN

¶4

¶5

THE HONOURABLE MR. JUSTICE ASHOK MENON

¶6

TUESDAY ,THE 04TH DAY OF DECEMBER 2018 / 13TH AGRAHAYANA, 1940

¶7

ITA.No. 301 of 2002

¶8

AGAINST THE ORDER/JUDGMENT IN ITA 595/1995 of I.T.A.TRIBUNAL,COCHIN BENCH

¶9

APPELLANT/S:

¶10

THE COMMISSIONER OF INCOMETAX, THIRUVANANTHAPURAM.

¶11

BY ADVS.

¶12

SRI PKR MENON, SR.COUNSEL FOR GO TAXES SRI.GEORGE K. GEORGE, SC FOR IT SRI.JOSE JOSEPH SC FOR INCOME TAX

¶13

RESPONDENT/S:

¶14

1 G.OOMMEN, PUTHOOR, KOTTARAKKARA.

¶15

2 BABU OOMMEN, M/S.ALPHONSE CASHEW INDUSTRIES, PUTHOOR P.O., KOTTARAKKARA.*

¶16

3 JOHNSON G.OOMMEN, M/S.ST.GREGORIOUS CASHEW INDUSTRIES, PUTHOOR P.O., KOTTARAKKARA.*

¶17

ITA 301 & 321 of 2002

¶18

¶19

4 JOSE G.OOMMEN, VAROOR MADATHILAZHIKATH VEEDU, PUTHOOR P.O., KOTTARAKKARA.*

¶20

5 JOB G.OOMMEN, M/S.PENIEL CASHEW COMPANY, PUTHOOR P.O., KOTTARAKKARA.*

¶21

6 JAMES G.OOMMEN, ST.PAUL'S CASHEW FACTORY, PUTHOOR P.O., KOTTARAKKARA.*

¶22

7 JELSON G.OOMMEN, M/S.ST.MARY'S CASHEW FACTORY, PUTHOOR P.O., KOTTARAKKARA.*

¶23

8 JESSY ABRAHAM, SANTHI BHAVAN, CHBIRATTAKONAM, THALACHIRA P.O., KOTTARAKKARA.*

¶24

*ADDL. R2 TO R8 ARE IMPLEADED AS PER ORDER DATED 04/12/2018 IN IA NO. 1906/11 IN ITA NO. 301/2002.

¶25

BY ADVS. SRI.JOSON MANAVALAN SRI.K.JOHN MATHAI SRI.KURYAN THOMAS SRI.M.GOPIKRISHNAN NAMBIAR SRI.P.BENNY THOMAS SRI.P.GOPINATH SRI RAJA KANNAN

¶26

OTHER PRESENT:

¶27

THIS INCOME TAX APPEAL HAVING BEEN FINALLY HEARD ON 04.12.2018, ALONG WITH ITA.321/2002, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

¶28

ITA 301 & 321 of 2002

¶29

¶30

IN THE HIGH COURT OF KERALA AT ERNAKULAM

¶31

PRESENT

¶32

THE HONOURABLE MR.JUSTICE K.VINOD CHANDRAN

¶33

¶34

THE HONOURABLE MR. JUSTICE ASHOK MENON

¶35

TUESDAY ,THE 04TH DAY OF DECEMBER 2018 / 13TH AGRAHAYANA, 1940

¶36

ITA.No. 321 of 2002

¶37

AGAINST THE ORDER/JUDGMENT IN ITA 611/1995 of I.T.A.TRIBUNAL,COCHIN BENCH DATED 29-04-2002

¶38

APPELLANT/S:

¶39

THE COMMISSIONER OF INCOME TAX,TVM. THIRUVANANTHAPURAM.

¶40

BY ADVS.

¶41

SRI.P.K.R.MENON,SENIOR COUNSEL, GOI(TAXES) SRI.GEORGE K. GEORGE SC FOR IT SRI.JOSE JOSEPH SC FOR INCOME TAX

¶42

RESPONDENT/S:

¶43

1 G.OOMMEN,PUTHOOR, KOTTARAKKARA.

¶44

2 BABU OOMMEN, M/S. ALPHONSE CASHEW INDUSTRIES, PUTHOOR P.O., KOTTARAKKARA.*

¶45

3 JOHNSON G. OOMMEN, M/S. GREGORIOUS CASHEW INDUSTRIES, PUTHOOR P.O., KOTTARAKKARA.*

¶46

ITA 301 & 321 of 2002

¶47

¶48

4 SRI. JOSE G. OOMMEN, VAROOR MADATHILAZHIKATH VEEDU, PUTHOOR P.O., KOTTARAKKARA.*

¶49

5 JOB G. OOMMEN, M/S. PENIEL CASHEW COMPANY, PUTHOOR P.O., KOTTARAKKARA.*

¶50

6 JAMES G. OOMMEN, ST. PAUL'S CASHEW FACTORY, PUTHOOR P.O., KOTTARAKKARA.*

¶51

7 JELSON G. OOMMEN, M/S. ST. MARY'S CASHEW FACTORY, PUTHOOR P.O., KOTTARAKKARA.*

¶52

8 JESSY ABRAHAM, SANTHI BHAVAN, CHBIRATTAKONAM, THALACHIRA P.O., KOTTARAKKARA.*

¶53

**--------------------------------------------------ADDITIONAL R2 TO R8 ARE IMPLEDADED AS PER ORDER DATED 04/12/2018 IN IA 1904/11 IN ITA 321/02.*

¶54

BY ADVS. SRI.JOSON MANAVALAN SRI.K.JOHN MATHAI SRI.KURYAN THOMAS SRI.M.GOPIKRISHNAN NAMBIAR SRI.P.BENNY THOMAS SRI.P.GOPINATH SRI.RAJA KANNAN

¶55

THIS INCOME TAX APPEAL HAVING BEEN FINALLY HEARD ON 04.12.2018, ALONG WITH ITA.301/2002, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

¶56

ITA 301 & 321 of 2002

¶57

¶58

JUDGMENT

¶59

[ITA 301/2002 ,ITA.321/2002]

¶60

Vinod Chandran, J.

¶61

Two appeals filed by the Revenue arising from the

¶62

very same assessment year being 1986-87. The issue relates to the additions made of three unexplained credits, respectively from Annamma Thomas, M.J.Philip and K.A.Thomas, totaling Rs.7,76,502/-. The Assessing

¶63

Officer added on the same in a re-assessment proceedings under Section 147 of the Income Tax Act, 1961 (for short “the Act”). The assessee contended

¶64

that during the assessment year as the provisions stood, there was only eight years available for the Department to take out proceedings under Section 147. The same stood amended in the year 1989 as ten years.

¶65

The First Appellate Authority refused to accept the contention and held that the ten year period would apply insofar as the limitation having stood extended by the specific provision. On the additions made, that

¶66

claimed from Annamma Thomas was confirmed. However,

¶67

ITA 301 & 321 of 2002

¶68

¶69

the additions with respect to M.J.Philip and K.A.Thomas were deleted.

¶70

The assessee approached the Tribunal. The

¶71

Tribunal relying on a Single Judge judgment of this Court, allowed the appeal finding that the extended limitation cannot apply to an year previous to the amendment. However, later a Division Bench of this Court reversed the judgment of the learned Single Judge

¶72

in Income Tax Officer v. Nilofer Hameed & another,

¶73

[2003] 262 ITR 281 . Hence, on the aspect of

¶74

limitation, we have to hold against the assessee and in favour of the Revenue.

¶75

The First Appellate Authority, considered the

¶76

unexplained credit as claimed against Annamma Thomas and found that the assessee is assessed to wealth tax assessment, in which also the very same credit was held to be unexplained. Hence, there was no cause to interfere with the same. On the question of unexplained credit from Annamma Thomas, we notice that the Tribunal noticed the wealth tax assessment, but however found

¶77

that the tax liability insofar as wealth tax is

¶78

ITA 301 & 321 of 2002

¶79

¶80

negligible and hence there could be no estoppel against

¶81

the assessee on that count alone. We do not think that

¶82

the same is a reasonable ground, when the wealth tax assessment has acquired finality as against the assessee on the very same ground.

¶83

On the unexplained credit as against M.J.Philip, it was found that this was not an

¶84

information available to the Assessing Officer at the

¶85

time the proceedings were initiated. The information as to the said unexplained credit came to the notice of

¶86

the Assessing Officer in the course of the re-assessment proceedings. The Tribunal failed to

¶87

notice the Explanation to Section 147 on that aspect. Further, we also notice that there was nothing stated

¶88

about the deletion of unexplained credit from K.A.Thomas. In such circumstances, there has to be

¶89

necessarily a remand insofar as the appeal and the

¶90

cross-objection filed by the Revenue only on the

¶91

question of the unexplained credits. With respect to M.J.Philip and K.A.Thomas, the addition deleted by the

¶92

First Appellate Authority, was challenged in

¶93

ITA 301 & 321 of 2002

¶94

¶95

cross-appeal by the Revenue. We notice that as far as

¶96

the appeal of the assessee on the question of limitation, we have already answered the question against the assessee and in favour of the Revenue. Considering the fact that we are remanding two other unexplained credits for fresh consideration, we are

¶97

also of the opinion that; that of Smt Annamma also should be left open to be considered by the Tribunal. Hence, answering the question of limitation in favour of the Revenue and against the assessee, the appeal before the Tribunal is restored and so is the cross-objection restored. No order as to costs.

Sd/-

K.VINOD CHANDRAN

JUDGE

Sd/-

ASHOK MENON

JUDGE

dkr

ITA 301 & 321 of 2002

¶106

¶107

APPENDIX OF ITA 301/2002

¶108

PETITIONER'S/S EXHIBITS:

¶109

ANNEXURE-A TRUE COPY OF THE ORDER OF THE ASSESSING OFFICER DATED 26/2/1993.

¶110

ANNEXURE-B TRUE COPY OF THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS) DATED 28/4/1995.

¶111

ANNEXURE-C TRUE COPY OF THE ORDER F THE APPELLATE TRIBUNAL DATED 29/4/2002.

¶112

APPENDIX OF ITA 321/2002

¶113

PETITIONER'S/S EXHIBITS:

¶114

ANNEXURE-A TRUE COPY OF THE ORDER OF THE ASSESSING OFFICER DATED 26/02/1993.

¶115

ANNEXURE-B TRUE COPY OF THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS) DATED 28/04/1995.

¶116

ANNEXURE-C

¶117

TRUE COPY OF THE ORDER OF THE APPELLATE TRIBUNAL DATED 29/04/2002.

The Commissioner of Incometax, v. G.Oommen

Case brief

What is this about?

What did the court decide?

The Commissioner of Incometax, v. G.Oommen

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Cases cited

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

The Commissioner of Income Tax,Trichur Vs Catholic Syrian Bank Ltd.

The Commissioner of Income Tax Vs M/S. Catholic Syrian Bank Ltd.

The Commissioner of Income Tax,Thrissur Vs M/S.Catholic Syrian Bank Ltd,Thrissur.

The Commissioner of Income Tax,Tvm. Vs G.Oommen,Puthoor,Kottarakkara

The South Indian Bank Ltd. Vs the Commissioner of Income Tax

The South Indian Bank Ltd,Trichur Vs the Commissioner of Income Tax,Cochin