Commissioner of Income Tax, Thiruvananthapuram v. G. Oommen and others

## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** ## **THE HONOURABLE MR.JUSTICE K.VINOD CHANDRAN** ## **&** **THE HONOURABLE MR. JUSTICE ASHOK MENON** **TUESDAY ,THE 04TH DAY OF DECEMBER 2018 / 13TH AGRAHAYANA, 1940** ## **ITA.No. 301 of 2002** **AGAINST THE ORDER/JUDGMENT IN ITA 595/1995 of I.T.A.TRIBUNAL,COCHIN BENCH** ## **APPELLANT/S:** **THE COMMISSIONER OF INCOMETAX, THIRUVANANTHAPURAM.** **BY ADVS. SRI PKR MENON, SR.COUNSEL FOR GO TAXES SRI.GEORGE K. GEORGE, SC FOR IT SRI.JOSE JOSEPH SC FOR INCOME TAX** ## **RESPONDENT/S:** |**1**|**G.OOMMEN,**| |---|---| ||**PUTHOOR, KOTTARAKKARA.**| |**2***|**BABU OOMMEN,**| ||**M/S.ALPHONSE CASHEW INDUSTRIES, PUTHOOR P.O.,**| ||**KOTTARAKKARA.**| |**3***|**JOHNSON G.OOMMEN,**| ||**M/S.ST.GREGORIOUS CASHEW INDUSTRIES, PUTHOOR P.O.,**| ||**KOTTARAKKARA.**| _ITA 301 & 321 of 2002_ 2 - **4* JOSE G.OOMMEN, VAROOR MADATHILAZHIKATH VEEDU, PUTHOOR P.O., KOTTARAKKARA.** - **5* JOB G.OOMMEN, M/S.PENIEL CASHEW COMPANY, PUTHOOR P.O., KOTTARAKKARA.** - **6* JAMES G.OOMMEN, ST.PAUL'S CASHEW FACTORY, PUTHOOR P.O., KOTTARAKKARA.** - **7* JELSON G.OOMMEN, M/S.ST.MARY'S CASHEW FACTORY, PUTHOOR P.O., KOTTARAKKARA.** - **8* JESSY ABRAHAM, SANTHI BHAVAN, CHBIRATTAKONAM, THALACHIRA P.O., KOTTARAKKARA.** - ***ADDL. R2 TO R8 ARE IMPLEADED AS PER ORDER DATED 04/12/2018 IN IA NO. 1906/11 IN ITA NO. 301/2002.** **BY ADVS. SRI.JOSON MANAVALAN SRI.K.JOHN MATHAI SRI.KURYAN THOMAS SRI.M.GOPIKRISHNAN NAMBIAR SRI.P.BENNY THOMAS SRI.P.GOPINATH SRI RAJA KANNAN** ## **OTHER PRESENT:** **THIS INCOME TAX APPEAL HAVING BEEN FINALLY HEARD ON 04.12.2018, ALONG WITH ITA.321/2002, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** _ITA 301 & 321 of 2002_ 3 ## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** # **PRESENT** **THE HONOURABLE MR.JUSTICE K.VINOD CHANDRAN** **&** **THE HONOURABLE MR. JUSTICE ASHOK MENON** **TUESDAY ,THE 04TH DAY OF DECEMBER 2018 / 13TH AGRAHAYANA, 1940** **ITA.No. 321 of 2002** **AGAINST THE ORDER/JUDGMENT IN ITA 611/1995 of I.T.A.TRIBUNAL,COCHIN BENCH DATED 29-04-2002** ## **APPELLANT/S:** **THE COMMISSIONER OF INCOME TAX,TVM. THIRUVANANTHAPURAM.** **BY ADVS. SRI.P.K.R.MENON,SENIOR COUNSEL, GOI(TAXES) SRI.GEORGE K. GEORGE SC FOR IT SRI.JOSE JOSEPH SC FOR INCOME TAX** ## **RESPONDENT/S:** |**1**|**G.OOMMEN,PUTHOOR,**| |---|---| ||**KOTTARAKKARA.**| |**2***|**BABU OOMMEN,**| ||**M/S. ALPHONSE CASHEW INDUSTRIES, PUTHOOR P.O.,**| ||**KOTTARAKKARA.**| |**3***|**JOHNSON G. OOMMEN,**| ||**M/S. GREGORIOUS CASHEW INDUSTRIES, PUTHOOR P.O.,**| ||**KOTTARAKKARA.**| _ITA 301 & 321 of 2002_ 4 - **4* SRI. JOSE G. OOMMEN, VAROOR MADATHILAZHIKATH VEEDU, PUTHOOR P.O., KOTTARAKKARA.** - **5* JOB G. OOMMEN, M/S. PENIEL CASHEW COMPANY, PUTHOOR P.O., KOTTARAKKARA.** - **6* JAMES G. OOMMEN, ST. PAUL'S CASHEW FACTORY, PUTHOOR P.O., KOTTARAKKARA.** - **7* JELSON G. OOMMEN, M/S. ST. MARY'S CASHEW FACTORY, PUTHOOR P.O., KOTTARAKKARA.** - **8* JESSY ABRAHAM, SANTHI BHAVAN, CHBIRATTAKONAM, THALACHIRA P.O., KOTTARAKKARA.** **---------------------------------------------------** - ***ADDITIONAL R2 TO R8 ARE IMPLEDADED AS PER ORDER DATED 04/12/2018 IN IA 1904/11 IN ITA 321/02.** **BY ADVS. SRI.JOSON MANAVALAN SRI.K.JOHN MATHAI SRI.KURYAN THOMAS SRI.M.GOPIKRISHNAN NAMBIAR SRI.P.BENNY THOMAS SRI.P.GOPINATH SRI.RAJA KANNAN** **THIS INCOME TAX APPEAL HAVING BEEN FINALLY HEARD ON 04.12.2018, ALONG WITH ITA.301/2002, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** _ITA 301 & 321 of 2002_ 5 ## **JUDGMENT** ## **[ITA 301/2002 ,ITA.321/2002]** ## Vinod Chandran, J. Two appeals filed by the Revenue arising from the very same assessment year being 1986-87. The issue relates to the additions made of three unexplained credits, respectively from Annamma Thomas, M.J.Philip and K.A.Thomas, totaling Rs.7,76,502/-. The Assessing Officer added on the same in a re-assessment proceedings under Section 147 of the Income Tax Act, 1961 (for short “the Act”). The assessee contended that during the assessment year as the provisions stood, there was only eight years available for the Department to take out proceedings under Section 147. The same stood amended in the year 1989 as ten years. The First Appellate Authority refused to accept the contention and held that the ten year period would apply insofar as the limitation having stood extended by the specific provision. On the additions made, that claimed from Annamma Thomas was confirmed. However, _ITA 301 & 321 of 2002_ 6 the additions with respect to M.J.Philip and K.A.Thomas were deleted. 2. The assessee approached the Tribunal. The Tribunal relying on a Single Judge judgment of this Court, allowed the appeal finding that the extended limitation cannot apply to an year previous to the amendment. However, later a Division Bench of this Court reversed the judgment of the learned Single Judge in _**Income Tax Officer v. Nilofer Hameed & another, [2003] 262 ITR 281**_ . Hence, on the aspect of limitation, we have to hold against the assessee and in favour of the Revenue. 3. The First Appellate Authority, considered the unexplained credit as claimed against Annamma Thomas and found that the assessee is assessed to wealth tax assessment, in which also the very same credit was held to be unexplained. Hence, there was no cause to interfere with the same. On the question of unexplained credit from Annamma Thomas, we notice that the Tribunal noticed the wealth tax assessment, but however found that the tax liability insofar as wealth tax is _ITA 301 & 321 of 2002_ 7 negligible and hence there could be no _estoppel_ against the assessee on that count alone. We do not think that the same is a reasonable ground, when the wealth tax assessment has acquired finality as against the assessee on the very same ground. 4. On the unexplained credit as against M.J.Philip, it was found that this was not an information available to the Assessing Officer at the time the proceedings were initiated. The information as to the said unexplained credit came to the notice of the Assessing Officer in the course of the re-assessment proceedings. The Tribunal failed to notice the Explanation to Section 147 on that aspect. Further, we also notice that there was nothing stated about the deletion of unexplained credit from K.A.Thomas. In such circumstances, there has to be necessarily a remand insofar as the appeal and the cross-objection filed by the Revenue only on the question of the unexplained credits. With respect to M.J.Philip and K.A.Thomas, the addition deleted by the First Appellate Authority, was challenged in _ITA 301 & 321 of 2002_ 8 cross-appeal by the Revenue. We notice that as far as the appeal of the assessee on the question of limitation, we have already answered the question against the assessee and in favour of the Revenue. Considering the fact that we are remanding two other unexplained credits for fresh consideration, we are also of the opinion that; that of Smt Annamma also should be left open to be considered by the Tribunal. Hence, answering the question of limitation in favour of the Revenue and against the assessee, the appeal before the Tribunal is restored and so is the cross-objection restored. No order as to costs. ## **Sd/-** **K.VINOD CHANDRAN** **JUDGE** **Sd/-** **ASHOK MENON** _dkr_ **JUDGE** _ITA 301 & 321 of 2002_ 9 ## **APPENDIX OF ITA 301/2002** **PETITIONER'S/S EXHIBITS:** **ANNEXURE-A TRUE COPY OF THE ORDER OF THE ASSESSING OFFICER DATED 26/2/1993.** **ANNEXURE-B** **TRUE COPY OF THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS) DATED 28/4/1995.** **ANNEXURE-C** **TRUE COPY OF THE ORDER F THE APPELLATE TRIBUNAL DATED 29/4/2002.** ## **APPENDIX OF ITA 321/2002** **PETITIONER'S/S EXHIBITS:** **ANNEXURE-A** **TRUE COPY OF THE ORDER OF THE ASSESSING OFFICER DATED 26/02/1993.** **ANNEXURE-B TRUE COPY OF THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS) DATED 28/04/1995.** **ANNEXURE-C TRUE COPY OF THE ORDER OF THE APPELLATE TRIBUNAL DATED 29/04/2002.**