2021 (9) TMI 1507 - HC - Income Tax

High Court of Kerala dismisses appeal by Income Tax against Joy Alukkas (India) Pvt. Ltd for AY 2011-12

The High Court of Kerala dismissed the appeal filed by the Principal Commissioner of Income Tax against M/s. Joy Alukkas (India) Pvt. Ltd for the ... Nature of expenses - expenditure incurred by the assessee for renovation of the lease hold premises for setting up a new show room - revenue expenditure or capital expenditure - HELD THAT:- As questions of law raised in the appeal are considered by this Court in assessee's own case for the AY 2007- 08, and answered in favour of the assessee and against the Revenue. The said judgment is reported in Joy Alukkas India Pvt. Ltd v. The Assistant Commissioner of Income Tax [2014 (6) TMI 80 - KERALA HIGH COURT] Having regard to the view already taken by this Court on the substantial questions being considered in the appeal on hand, the questions are answered in favour of the assessee and against the Revenue. Hence, the appeal fails. Issues:1. Appeal against the order of the Income Tax Appellate Tribunal (ITAT) for the Assessment Year 2011-12.Analysis:The High Court of Kerala heard an appeal filed by the Principal Commissioner of Income Tax, Kochi-1/Revenue against M/s. Joy Alukkas (India) Pvt. Ltd, Kochi/Assessee regarding the order of the ITAT dated 26.09.2017. The subject matter of the appeal pertained to issues decided for the returns filed for the Assessment Year 2011-12. The Advocates representing the parties were Mr. Navneeth N Nath, Mr. Jose Joseph, and Senior Counsel Mr. Joseph Markos.The Court noted that the questions of law raised in the appeal had already been considered in the assessee's own case for the Assessment Year 2007-08. In that case, the questions were answered in favor of the assessee and against the Revenue. The judgment for the earlier case was reported in Joy Alukkas India Pvt. Ltd v. The Assistant Commissioner of Income Tax (2016) 282 CTR (Ker.) 551.Considering the precedent set in the assessee's previous case and the view already taken by the Court on the substantial questions raised in the current appeal, the Court ruled in favor of the assessee and against the Revenue. Consequently, the appeal filed by the Principal Commissioner of Income Tax was dismissed, affirming the decision in favor of the assessee.In conclusion, the High Court of Kerala upheld the decision in favor of the assessee, based on the precedent set in a previous case and the view taken by the Court on the substantial questions raised in the appeal. The dismissal of the Income Tax Appeal signifies that the questions of law were resolved in favor of the assessee and against the Revenue.