The Commissioner Of Income -Tax vs Kerala State Industrial … on 19 February, 2009

       

  

  

 
 
  IN THE HIGH COURT OF KERALA AT ERNAKULAM

ITA.No. 133 of 2008()


1. THE COMMISSIONER OF INCOME -TAX,
                      ...  Petitioner

                        Vs



1. KERALA STATE INDUSTRIAL DEVELOPMENT
                       ...       Respondent

                For Petitioner  :SRI.P.K.R.MENON,SR.COUNSEL, GOI(TAXES)

                For Respondent  :SRI.M.PATHROSE MATTHAI (SR.)

The Hon'ble MR. Justice C.N.RAMACHANDRAN NAIR
The Hon'ble MR. Justice K.SURENDRA MOHAN

 Dated :19/02/2009

 O R D E R
     C.N.RAMACHANDRAN NAIR & K.SURENDRA MOHAN, JJ.
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                             I.T.A. NO: 133 OF 2008
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                     Dated this the 19th February, 2009.

                                        JUDGMENT

RAMACHANDRAN NAIR, J.

The respondent assessee is a Government of Kerala

undertaking engaged in industrial financing. The revenue has

filed appeal against the order of the Tribunal for the assessment

year 1997-98 raising three questions. When the matter came up

for admission this Court felt that only the third question arises for

consideration because question Nos: 1 and 2 raised in the appeal

are covered by Division Bench judgment of this Court in assessee’s

own case in ITA 32/2003.

2. We have heard counsel for the appellant and counsel for

the assessee on the third question. We do not find any ground to

interfere with the order of the Tribunal because the Tribunal has

only confirmed the order of the first appellate authority holding

that assessee is entitled to follow the consistent stand taken by it

that 92.15% of the income is attributable to long term investments.

The department has no case that there is any escapement of

income on account of apportionment of 92.15% attributable to long

ITA 133/2008 2

term investments. Even if the apportionment is not exactly correct,

at the maximum it may affect quantum deductions. We do not find

any question of law arising in a matter where the issue is only

correctness of the apportionment of income from long term

investments. We therefore dismiss the appeal filed by the revenue.

C.N. RAMACHANDRAN NAIR
Judge

K. SURENDRA MOHAN
Judge

jj

K.K.DENESAN & V. RAMKUMAR, JJ.

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M.F.A.NO:

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JUDGMENT

Dated: