MALANKARA PLANTATIONS LTD V. THE ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX

WP(C)/11721/2021

AI Insights

The case involves M/S Malankara Plantations Ltd., which challenged the assessment order and penalty notice issued by the Income Tax authorities regarding their claim for re-plantation allowance under Rule 7A(2) of the Income Tax Rules, 1962, for the assessment year 2018-19. The petitioner argued that a similar claim for a previous assessment year had been disallowed, but a Full Bench had later ruled in their favor, recognizing the entitlement to such an allowance. The High Court of Kerala, referencing the Full Bench's decision, remanded the case back to the Assessing Authority for a reevaluation in accordance with the new legal interpretation.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 676139 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 31-05-2023
• Assessment Year: misc
• Other Referred Cases: ITA No.23/2018
• Laws Referred To: Income Tax Rules, 1962
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: P K MENON; JOSE JOSEPH
• Assessee Lawyers: JOSEPH MARKOSE; V MARKOS; ABRAHAM MARKOS; ISAAC THOMAS; ALEXANDER MARKOS; SHARAD KODANTHARA
• Keywords: Assessment Order; Income Tax; Penalty notice; Re-plantation allowance
• Section: 7A(2)

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MRS. JUSTICE ANU SIVARAMAN WEDNESDAY, THE 31ST DAY OF MAY 2023 / 10TH JYAISHTA, 1945 WP(C) NO. 11721 OF 2021 PETITIONER: M/S.MALANKARA PLANTATIONS LTD MALANKARA BUILDINGS, KODIMATHA, KOTTAYAM - 686 039, REPRESENTED BY ITS MANAGING DIRECTOR, MR. J.K. THOMAS. BY ADVS. JOSEPH MARKOSE (SR.) V.ABRAHAM MARKOS ABRAHAM JOSEPH MARKOS ISAAC THOMAS ALEXANDER JOSEPH MARKOS SHARAD JOSEPH KODANTHARA RESPONDENTS: 1 THE ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX, INCOME TAX OFFICER, NATIONAL E-ASSESSMENT CENTRE, NEW DELHI - 110 001. 2 THE PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX NATIONAL E-ASSESSMENT CENTRE, NEW DELHI - 110 001. SRI.P.K.RAVINDRANATHA MENON (SR.) SRI.JOSE JOSEPH, SC, FOR INCOME TAX THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 31.05.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 11721 OF 2021 2 JUDGMENT Dated this the 31st day of May, 2023 This writ petition is filed challenging Ext.P3 assessment order and Ext.P4 penalty notice in respect of the assessment year 2018-19. The learned senior counsel appearing for the petitioner submits that the issue in question is with regard to the claim of the petitioner for re- plantation allowance under Rule 7A(2) of the Income Tax Rules, 1962, which was disallowed. It is submitted that in respect of the income tax assessment year 2011-12, a similar claim for re-plantation allowance had been disallowed and the first appeal and second appeal filed by the petitioner were dismissed. Against the second appeal, the petitioner preferred ITA No.23/2018. The issue was referred to the Full Bench and the Full Bench, by its order dated 01.08.2022, considered the issue and found that the assessee is entitled to allowance in respect of the cost of replacement of dead and useless rubber trees under Rule 7A(2) of the 1962 Rules. The question was answered and the Registry was directed to post the ITA before the Division Bench. The Division WP(C) NO. 11721 OF 2021 3 Bench considering the ITA in the light of the order of the Full Bench had remanded the matter to the primary authority to consider the issue afresh in the light of the order of the Full Bench with regard to the eligibility for re-plantation expenses. 2. It is submitted that the issue raised in this writ petition stands covered by the said order and judgment and therefore, this matter is also liable to be remitted back to the Assessment Authority to reconsider on the basis of the findings of the Full Bench. In the above view of the matter, this writ petition is ordered setting aside Exts.P3 and P4 and remanding the matter for a fresh consideration to the Assessing Authority in accordance with the findings of the Full Bench in ITA No.23/2018 dated 01.08.2022. Sd/- ANU SIVARAMAN JUDGE NP WP(C) NO. 11721 OF 2021 4 APPENDIX OF WP(C) 11721/2021 PETITIONER’S EXHIBITS Exhibit P1 TRUE COPY OF THE INTERIM ORDER DATED 04.12.2019 IN W.P.(C) NO.32889/2019 OF THIS HONOURABLE COURT. Exhibit P2 TRUE COPY OF THE INCOME TAX COMPUTATION FOR AY 2018-19. Exhibit P3 TRUE COPY OF THE ASSESSMENT ORDER DATED 10.04.2021 ISSUED BY THE 1ST RESPONDENT FOR AY 2018-19. Exhibit P4 TRUE COPY OF THE NOTICE DATED 13.04.2021 ISSUED BY THE 1ST RESPONDENT FOR AY 2018-19. RESPONDENTS’ EXHIBITS: NIL "