LAWS(KER)-2012-7-369

COMMISSIONER OF INCOMETAX Vs. HARRISONS MALAYALAM LTD

Decided On July 24, 2012
COMMISSIONER OF INCOMETAX Appellant
V/S
HARRISONS MALAYALAM LTD Respondents

JUDGEMENT

(1.) THE above appeals filed by the Revenue are with respect to the assessment years 1989-90 and 1988-89. For both the years, the assessee, engaged in the business of plantation, claimed deduction under Section 32AB of the Income Tax Act, 1961 (hereinafter referred to as "the Act"). The amounts claimed as deduction included interest income under various heads, being from investments, income tax refund, etc., replanting subsidy, sale of old trees, and so and so forth. The assessing officer disallowed the same, holding that these incomes were from other sources and that it could not be included under the head "profits and gains of business or profession", as understood under Section 32AB of the Act. In the year 1989-90 (I.T.A.No.129 of 2001) both the appellate authorities held against the Revenue and directed the deduction to be granted to the petitioner. In the assessment year 1988-89 (I.T.A.No.92 of 2002) while the first appellate authority rejected the claim; the Tribunal reversed it, directing the assessing officer to allow the claim. In the impugned orders to arrive at the said finding, different benches of the Tribunal had placed reliance on the decision of the Tribunal in Kil Kothagiri Tea and coffee Estate Company Ltd. as also the decision of this Court in the case of Apollo Tyres Ltd. (237 ITR 706).

(2.) THOUGH a number of questions are framed as questions of law in the above appeals, we are of the opinion that the question of law arising from the order of the Tribunal is the following:

(3.) RESPECTFULLY following the above decision of the Full Bench of this Court, we allow these appeals; and restore the orders of the assessing authority setting aside both the appellate orders in I.T.A.No.129 of 2001 and setting aside the Tribunal order in I.T.A.No.98 of 2002.