High Court dismisses Revenue's appeal against ITAT orders for AY 1995-96, advising review before Tribunal

The High Court of Kerala declined to entertain the Revenue's appeal against the orders of the Income Tax Appellate Tribunal for the assessment year 1995-96. The Court noted that the Tribunal's decision was in line with the High Court's dicta but the Revenue argued it conflicted with the apex Court's decision. The Court advised the Revenue to seek a review or rectification of the order before the Tribunal if they believed it contradicted the law established by the apex Court. Consequently, the appeal was dismissed, granting the Revenue liberty to pursue appropriate remedies before the Tribunal.

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Issues involved: Appeal by Revenue against orders of Income Tax Appellate Tribunal for assessment year 1995-96.

The High Court of Kerala heard an appeal by the Revenue against the orders of the Income Tax Appellate Tribunal, Cochin Bench, Kochi, in I.T.A.No.114/Coch/2002 for the assessment year 1995-96. The Tribunal had based its decisions on the dicta laid down by the jurisdictional High Court. The matter had been pending for nearly three years due to non-payment of court fees by the Revenue. The Court noted that if the appeal had been brought before them earlier, they would have upheld the Tribunal's reasoning as it followed the High Court's dicta. However, the Revenue pointed out that the High Court's view was not supported by the apex Court's decision in the case of IPCA Laboratory Ltd. v. Deputy Commissioner of Income Tax [(2004) 266 ITR 521]. The Court held that if the Revenue believed the Tribunal's decision contradicted the law laid down by the apex Court, they should apply for a review or rectification of the order before the Tribunal. Consequently, the Court declined to entertain the appeal, granting the Revenue liberty to make the necessary application or review petition before the Tribunal for appropriate orders.

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