COMMISSIONER OF INCOME TAX Vs. TRAVANCORE TITANIUM PRODUCTS LTD
LAWS(KER)-2003-4-21
HIGH COURT OF KERALA
Decided on April 04,2003

COMMISSIONER OF INCOME TAX Appellant
VERSUS
Travancore Titanium Products Ltd Respondents

JUDGEMENT

G.SIVARAJAN,J. - (1.) IT Ref. 20/1998 and ITA Nos. 13, 39, 70, 77, 84 and 166 of 2000 are at the instance of the Revenue and ITA No. 69/1999, IT Ref. No. 135/1999, ITA Nos. 180 and 183/2000, ITA No. 173/2001 and ITA Nos. 143, 151 and 161 of 2002 are by the assessees.
(2.) SINCE the question involved in ail these cases relates to the eligibility for deduction of the service charges paid by the respective assessees -Government owned companies -to the Government as per certain Government orders under Section 37 of the IT Act, 1961 (for short 'the Act'), though four different assessees are the respondents, we are disposing of all these cases by this common judgment, Conflicting views have been expressed by different Benches (Members different) of the Tribunal, Cochin Bench. Hence IT references/IT appeals by the assessees and the Revenue on the same question. The Travancore Titanium Products Ltd. is involved in IT Ref. No. 20 of 1998, ITA No. 13/2000, ITA No. 84/2001, ITA No. 151/2002 and ITA No. 161/2002. The assessment years concerned are 1991 -92, 1992 -93, 1993 -94, 1994 -95 and 1995 -96, respectively. M/s Kerala Agro Machinery Corporation Ltd. is involved in ITA No. 70/2000 and the assessment year is 1991 -92. The Travancore Cochin Chemicals Ltd. is involved in ITA No. 39 and 77/2000, 166/2000 and 173/2001. The assessment years concerned are 1992 -93, 1993 -94, 1992 -93 and 1994 -95, respectively. The Kerala State Industrial Products Trading Corporation Ltd. is involved in IT Ref. No. 135/1999, ITA Nos. 69/1999, 180/2000, 183/2000 and 143/2002. The assessment years concerned are 1991 -92, 1992 -93, 1993 -94, 1994 -95 and 1995 -96, respectively.
(3.) IT Ref. No. 20 of 1998 is the leading case where the Travancore Titanium Products Ltd. Thiruvananthapuram, is involved. The Tribunal, Cochin Bench, under Section 256(1) of the Act has referred the following two questions of law for decision by this Court at the instance of the Revenue ; '1. Whether, on the facts and in the circumstances of the case, the assessee being a company owned by the 'Government of Kerala' is entitled to claim deduction of the amount paid to the Government of Kerala for the services rendered to the assessee by the Government ? 2. Whether, on the facts and in the circumstances of the case, the assessee is entitled to claim deduction of Rs. 6,72,429, the employer's contribution to the provident fund in the asst. yr. 1991 -92 ?' ;


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