TaxTMI 
TaxTMI 
2021 (11) TMI 970
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....Court are stated hereunder: Sl.No. Assessment year Date of Assessment Order MM/DD/YY Appeal before CIT Appeal Before ITAT Appeal in High Court 1 2007-2008 11/09/09 ITA-24/KTM/CIT(A)IV/09-10 ITA No.111/Coch/2014 ITA No.14 of 2018 2 2009-2010 12/28/11 Appeal No. 53/KTM/CIT(A)-IV/11-12 ITA No.113/Coch/2014 ITA No.20 of 2018 3 2010-2011 03/30/13 ITA-18/KTM/CIT(A)IV/13-14 ITA No.390/Coch/2014 ITA No.18 of 2018 4 2012-2013 02/23/15 ITA No.K-56/KTM/CIT(A)/KTM/2012-13 ITA No.223/Coch/2016 ITA No.21 of 2018 5 2008-2009 11/08/10 Appeal No.20/KTM/CIT(A)-IV/10-11 ITA No.112/Coch/2014 ITA No.22 of 2018 3. The appeals raise a question of entitlement by way of deduction of Income Tax paid under the Kerala Agricultural Income Tax Act, 1991 (for short 'Act 1991') and under Section 43B of the Central Act. 4. The assessee is a company with the share holding held by the Governments of India and Kerala. The appellant undertakes Oil Palm cultivation and manufacture and production of crude palm oil. The assessee, till the assessment year 2005-2006, has been paying returns un....
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...., whereas a part of income alone is amenable to Agricultural Income Tax Act. The agricultural income is excluded from the purview of Central Act and therefore is not part of computation of income under Central Act. The assessee aggrieved by the assessment order filed appeal before the Commissioner of Income Tax and through order in Annexure-B dated 25.03.2010, the appeal filed by the assessee was dismissed. The further appeal before ITAT resulted in dismissal through the common judgment impugned in the appeal. It is useful and convenient to excerpt the following portion of the common judgment to appreciate the substantial questions and the argument of Mr.Anil D.Nair. "We have heard the rival submissions and perused the material on record. Admittedly, the agricultural income is exempt from Central Income Tax by virtue of provisions of Section 10(1) of the Income Tax Act. When agricultural income itself is exempt from the purview of Central Income Tax, there is no reason why a payment made out of agricultural income (already exempt) should be allowed as a deduction in computing the business income under the Central Income-Tax Act. Section 43B states that "a deduction otherwi....
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.... facts and circumstances of the case ought not the Tribunal have dismissed the appeal filed by the Revenue, by taking note of the fact that the Department had accepted the orders passed by the Income Tax Appellate Tribunal for the assessment year 199798 and 1998-99 and have been following the same up to assessment year 2006-07. iii. In the facts and circumstances of the case, ought not the Tribunal have remanded the matter back to the assessing authority in terms of the Tribunal order dated 30.11.2007 for the assessment year 1997-98, 1998-99, 1999-2000." 7. Mr.Anil D.Nair contends that the revenue has accepted the formula decided by the Commissioner of Income Tax under Rule-7 and the Department has accepted the claim of assessee in all entirety for the preceding assessment years. Therefore, for the subject assessment years as well, the same view ought to be maintained for consistency of assessee's tax liability under Central Act and Act 1991. In other words, the revenue is precluded or estopped from taking a different view on the issues which are accepted by the revenue. He next contends that the income tax paid by the assessee under Act 1991 ought to be deducted un....
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....t, as rightly contended by the learned counsel for the revenue, there may be certain cases where because of the small amount of revenue involved, no appeal is filed. Policy decisions have been taken not to prefer appeal where the revenue involved is below a certain amount. Similarly, where the effect of the decision is revenue neutral there may not be any need for preferring the appeal. All these certainly provide the foundation for making a departure. In answering the reference, we hold that merely because in some cases. The Revenue has not preferred appeal that does not operate as a bar for the Revenue to prefer an appeal in another case where there is just cause for doing so or it is in public interest to do so or for a pronouncement by the higher court when divergent views are expressed by the Tribunals or the High Courts. The matter shall be placed before the concerned Bench for disposal of the appeals." 10. We have taken note of the submissions and perused the record. We have called upon the counsel for assessee to place before us the separate returns filed by the assessee for the subject assessment years under Central Act and Act 1991 to appreciate the movement or flow of....