Commissioner of Income Tax, Cochin v. Bhageeratha Engineering Ltd. (and related matters: Bhageeratha Electricals and Structurals Ltd.; Bhageeratha Engineering Ltd.)

Case Details & Bench

Court: High Court of Kerala
Hon'ble Judges: S. V. Bhatti
Bechu Kurian Thomas
Judgment Date: 2021-03-17
Court Decision / Holding: Having regard to the above submission, the appeals stand dismissed. No order as to costs.
Final Disposition: Appeals dismissed; No order as to costs.

Parties to the Case

Appellants / Petitioners

Commissioner of Income Tax, Cochin

Respondents

M/S Bhageeratha Engineering Ltd., Kochi
M/S Bhageeratha Electricals and Structurals Limited, Kochi
M/S Bhageeratha Engineering Ltd., Vazha kkala, Kakkanad P.O., Kochi-682030

Legal Representation & Advocates

Counsels for Petitioners

• Jose Joseph, Senior Counsel (SC)
• Christopher Abraham, Advocate

Counsels for Respondents

• SMT. P. Anitha
• SMT. R.S. Geetha
• Smt. T.M. Sreedharan
• Sri. V.B. Unniraj

Case Synopsis & Summary

This batch judgment of the Kerala High Court comprises four Income Tax Appeals (ITA Nos. 281/2009, 188/2012, 1466/2009, 101/2010) arising from ITAT Cochin Bench orders for the respective assessment years 1993-94, 1999-2000, 2001-2002 and 2003-2004. Heard on 17 March 2021 by a Division Bench of Justices S.V. Bhatti and Bechu Kurian Thomas, the Revenue–appellant contends that the matters fall within the threshold ceiling prescribed by the CBDT Circular and should be resolved in light of the binding nature of CBDT Circular as clarified by the Supreme Court in S.C. Naregal v. Commissioner of Income Tax. The respondents are Bhageeratha group entities (Engineering Ltd.; Electricals and Structurals Ltd. with various Kochi addresses). The court records that the value in the appeals is below the CBDT ceiling, cites the Naregal decision regarding binding circulars, and observes that the dictum is applicable to these appeals. The result, after hearing the parties, is that all four ITA appeals are dismissed, with no order as to costs. The judgment enumerates the four assessments and ITAT numbers, and includes appendices detailing exhibits and orders.

Provisions of Law Cited

Section 143(3) of the Income Tax ActCBDT Circular (binding nature of)

Submissions & Arguments

Contentions of Appellants / Petitioners

Submitted that the appeals fall within the CBDT Circular ceiling and that the binding nature of CBDT Circular, as clarified by the Supreme Court in S.C. Naregal v. Commissioner of Income Tax, applies to the current appeals; thus they should be dismissed in light of the ceiling and the circular’s binding effect.

Contentions of Respondents

Joined in the submission that the subject appeals lie within the CBDT circular threshold and that the binding dictum of the CBDT Circular should guide the disposal of the appeals; the Appeals are to be decided in accordance with this threshold and the Tribunal’s orders.

Cited Precedents (1)

Case Name	Citation	Treatment	Explanation
S.C. Naregal v. Commissioner of Income Tax	(2019) 418 ITR 455 (SC)	Positive	Court cites and applies the Supreme Court’s discussion on the binding nature of CBDT Circular to ensure these appeals fall within the circular threshold.

Extracted Judgment Text

Exact text extracted from official judgment records.

# IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE S.V.BHATTI & THE HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS WEDNESDAY, THE 17TH DAY OF MARCH 2021 / 26TH PHALGUNA, 1942 ## ITA.No.281 OF 2009 AGAINST THE ORDER IN ITA 444/1999 DATED 30-06-2003 OF I.T.A.TRIBUNAL,COCHIN BENCH ## APPELLANT: COMMISSIONER OF INCOME TAX, COCHIN. BY ADVS. JOSE JOSEPH, SC, FOR INCOME TAX CHRISTOPHER ABRAHAM, INCOME TAX DEPARTMENT ## RESPONDENT: M/S. BHAGEERATHA ENGINEERING LTD., 132, PANAMPILLY AVENUE, COCHIN-682 036. R1 BY ADV. SMT.P.ANITHA R1 BY ADV. SMT.R.S.GEETHA R1 BY ADV. SRI.T.M.SREEDHARAN SR. R1 BY ADV. SRI.V.B.UNNIRAJ THIS INCOME TAX APPEAL HAVING BEEN FINALLY HEARD ON 17.03.2021, ALONG WITH ITA.1466/2009, ITA.101/2010, ITA.188/2012, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ## IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE S.V.BHATTI & THE HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS WEDNESDAY, THE 17TH DAY OF MARCH 2021 / 26TH PHALGUNA, 1942 ## ITA.No.1466 OF 2009 AGAINST THE ORDER IN ITA 350/2006 DATED 25-04-2008 OF I.T.A.TRIBUNAL,COCHIN BENCH ## APPELLANT: THE COMMISSIONER OF INCOME TAX, COCHIN. BY ADVS. SRI.P.K.R.MENON,SR.COUNSEL, GOI(TAXES) JOSE JOSEPH, SC, FOR INCOME TAX CHRISTOPHER ABRAHAM, INCOME TAX DEPARTMENT ## RESPONDENT: M/S.BHAGEERATHA ELECTRICALS AND STRUCTURALS LIMITED, KOCHI. R1 BY ADV. SMT.P.ANITHA R1 BY ADV. SMT.R.S.GEETHA R1 BY ADV. SRI.T.M.SREEDHARAN SR. R1 BY ADV. SMT.K.SEEMA R1 BY ADV. SRI.V.B.UNNIRAJ THIS INCOME TAX APPEAL HAVING BEEN FINALLY HEARD ON 17.03.2021, ALONG WITH ITA.281/2009, ITA.101/2010, ITA.188/2012, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE S.V.BHATTI & THE HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS WEDNESDAY, THE 17TH DAY OF MARCH 2021 / 26TH PHALGUNA, 1942 ITA.No.101 OF 2010 AGAINST THE ORDER IN ITA 771/2005 DATED 24-08-2009 OF I.T.A.TRIBUNAL,COCHIN BENCH ## APPELLANT: THE COMMISSIONER OF INCOME TAX, COCHIN. BY ADVS. JOSE JOSEPH, SC, FOR INCOME TAX CHRISTOPHER ABRAHAM, INCOME TAX DEPARTMENT ## RESPONDENT: M/S BHAGEERATHA ENGINEERING LTD., BHAGEERATHA RESIDENCY, BANERJI ROAD,, KOCHI -18. R1 BY ADV. SMT.P.ANITHA R1 BY ADV. SMT.R.S.GEETHA R1 BY ADV. SRI.T.M.SREEDHARAN SR. R1 BY ADV. SRI.V.B.UNNIRAJ THIS INCOME TAX APPEAL HAVING BEEN FINALLY HEARD ON 17.03.2021, ALONG WITH ITA.281/2009, ITA.1466/2009, ITA.188/2012, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE S.V.BHATTI & THE HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS WEDNESDAY, THE 17TH DAY OF MARCH 2021 / 26TH PHALGUNA, 1942 ## ITA.No.188 OF 2012 AGAINST THE ORDER IN ITA 1277/2005 DATED 27-04-2012 OF I.T.A.TRIBUNAL,COCHIN BENCH ## APPELLANT: THE COMMISSIONER OF INCOME TAX-I, COCHIN COCHIN. BY ADVS. SRI.P.K.R.MENON,SR.COUNSEL, GOI(TAXES) JOSE JOSEPH, SC, FOR INCOME TAX CHRISTOPHER ABRAHAM, INCOME TAX DEPARTMENT ## RESPONDENT: M/S. BHAGEERATHA ENGINEERING LTD., VAZHAKKALA, KAKKANAD P.O. KOCHI-682030. R1 BY ADV. SMT.P.ANITHA R1 BY ADV. SMT.R.S.GEETHA R1 BY ADV. SRI.T.M.SREEDHARAN SR. R1 BY ADV. SRI.V.B.UNNIRAJ THIS INCOME TAX APPEAL HAVING BEEN FINALLY HEARD ON 17.03.2021, ALONG WITH ITA.281/2009, ITA.1466/2009, ITA.101/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: **ITA Nos.281/2009, 188/2012, 1466/2009 & 101/2010** **-5-** ## **J U D G M E N T** [ ITA.281/2009, ITA.1466/2009, ITA.101/2010, ITA.188/2012 ] Dated this the 17th day of March 2021 ## S.V. Bhatti, J. The Revenue is the appellant in the batch of appeals. The details of the appeals are stated as follows: |Sl.<br>No.|Assessment<br>Year|Tribunal Appeal No.|ITA Nos.| |---|---|---|---| |1|1993-1994|444(Coch)/99|281/2009| |2|1999-2000|1277/Coch/2005 &<br>C.O.No.12/Coch/2006|188/2012| |3|2001-2002|771/(Coch)/2005|101/2010| |4|2003-2004|350/Coch/2006|1466/2009| 2. Heard learned Senior Standing Counsel Christopher Abraham and Senior Advocate T M Sreedharan. 3. The value in the appeals is less than the limit ## **ITA Nos.281/2009, 188/2012, 1466/2009 & 101/2010** **-6-** prescribed by CBDT circular. The Supreme Court in the judgment reported in _S.C. Naregal v. Commissioner of Income Tax_[1] has considered the effect of binding nature of CBDT Circular. 4. The counsel appearing for the parties state that the valuation of the subject appeals since is less than the ceiling limit stipulated by CBDT Circular, and the dictum laid down by the Apex Court is applicable to the appeals on hand. Having regard to the above submission, the appeals stand dismissed. No order as to costs. Sd/- S.V.BHATTI JUDGE Sd/- BECHU KURIAN THOMAS JUDGE jjj 1 (2019) 418 ITR 455 (SC) **ITA Nos.281/2009, 188/2012, 1466/2009 & 101/2010** **-7-** ## APPENDIX OF ITA 281/2009 PETITIONER'S/S EXHIBITS: ANNEXURE A COPY OF ORIGINAL ASSESSMENT ORDER U/S.143(3) DATED 21/03/1996 ISSUED BY THE ASSESSING OFFICER FOR THE ASST. YEAR 1993-94. ANNEXURE B COPY OF THE ORDER DATED 01/07/1999 OF THE COMMISSIONER OF INCOME TAX (APPEALS). ANNEXURE C COPY OF THE ORDER DATED 30/06/2003 OF THE INCOME TAX APPELLATE TRIBUNAL IN ITA NO.439/COCH/99 AND ITA NO.444/COCH/99. **ITA Nos.281/2009, 188/2012, 1466/2009 & 101/2010** **-8-** ## APPENDIX OF ITA 1466/2009 PETITIONER'S/S EXHIBITS: ANNEXURE A COPY OF ASSESSMENT ORDER DATED 12/01/2006 OF THE ASSESSMENT YEAR 2003-04. ANNEXURE B COPY OF ORDER DATED 24/02/2006 OF THE COMMISSIONER OF INCOME TAX (APPEALS). ANNEXURE C COPY OF THE ORDER DATED 25/04/2008 OF THE INCOME TAX APPELLATE TRIBUNAL, COCHIN BENCH IN ITA NO.350/COCH/2006. **ITA Nos.281/2009, 188/2012, 1466/2009 & 101/2010** **-9-** ## APPENDIX OF ITA 101/2010 PETITIONER'S/S EXHIBITS: ANNEXURE A COPY OF ORDER U/S.143(3) DATED 05/02/2004 FOR THE ASSESSMENT YEAR 2001-02. ANNEXURE B COPY OF THE ORDER DATED 10/03/2005 OF THE COMMISSIONER OF INCOME TAX (APPEALS). ANNEXURE C COPY OF THE ORDER DATED 24/08/2009 OF THE INCOME TAX APPELLATE TRIBUNAL, COCHIN BENCH IN ITA NO. 771/COCH/2005. **ITA Nos.281/2009, 188/2012, 1466/2009 & 101/2010** **-10-** ## APPENDIX OF ITA 188/2012 PETITIONER'S/S EXHIBITS: ANNEXURE A TRUE COPY OF THE ASSESSMENT ORDER DATED 21/12/2004. ANNEXURE B TRUE COPY OF THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) DATED 28/09/2005. ANNEXURE C TRUE COPIES OF THE ORDERS OF THE TWO MEMBERS OF THE TRIBUNAL. ANNEXURE D TRUE COPY OF THE ORDER OF THE THIRD MEMBER OF THE TRIBUNAL DATED 23/04/2012. ANNEXURE E TRUE COPY OF THE ORDER OF THE TRIBUNAL DATED 27/04/2012.