THE COMMISSIONER OF INCOME TAX V. M/S CANBANK FINANCIAL SERVICES LTD

ITA/1003/2006

AI Insights

The case involves multiple income tax appeals by the Commissioner of Income-Tax and the Deputy Commissioner of Income-Tax against M/s. Canbank Financial Services Ltd. The primary legal question was whether the respondent company qualifies as a 'credit institution' under the Income Tax Act, specifically under Sections 2(5A) and 2(58). The appellants argued that the company, being a subsidiary of Canara Bank and engaged in financial services, should be classified under these sections, which would subject it to different tax liabilities. The respondent contested this classification, leading to a detailed examination of the company's activities and the applicable legal definitions.

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 703398 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 29-05-2012
• Assessment Year: misc
• Other Referred Cases: Commissioner of Income Tax vs. Motor and General Finance Ltd.
• Laws Referred To: Income Tax Act, Banking Regulation Act, 1949, Companies Act, 1956, State Financial Corporations Act, 1951
• Result in Favour of: Partly Allowed
• Court: HIGH COURT
• Assessee Lawyers: G KAMALADHAR
• Keywords: Assessment Year; Credit Institution; Financial Company; Income tax appeal; Merchant Bank
• Section: 2(13); 51; 2(5A); 2(5B); 2(58); 2(5A)(i)

Judgement Text

"V -I IN THE HiGH COURT OF KARNATAKA AT BANGALORE DATED -mis THE 29’’ DAY OF MAY 2012 PRESENT THE HON’BLE MR.JUSTICE D.V.SHYLENDRA KUMAR AND THE HON’BLE MR. JUSTICE B. SREEN1VASE GOWDA Income Tax Appeal No.1003/2006 C/w Income Tax Appeal No.1002/2006 C/w Income Tax Appeal No.1391/2006 I.T.A. No.1003/2006 BETWEEN: 1. The Commissioner of income-Tax. Central Circle, C.RBuflding, Queens Road. Bangalore. 2. The Deputy Commissioner of Income-Tax Special Range-6. C.RBuilding, Queens Road, Bangalore. .. APPEUANTh (By Sri.G.Kamaladhar. Adv.) AND: M/s. Canbank Financial Services Ltd.. No.19/b, Kareem Towers Cunningham Road r -I’ 1 I I ‘ L ‘ tUe. •j ,r I P’ jt ) , C I p .fl I’ il C S ]‘ )IUI .f A).St )fl. 7iTtTP!itltJ•Ii:i• ) I — -1.1.. .13 T” ) T T%% ‘Lit ‘3 at - ‘-TI I I fltTPTTflFj’fl3 I fl I a’_ aI-’.k-a J(’ .)Iflr.ø.I1U?U(s) .M.TJ • lOOt’ tOOT T’N ¼J. I flh1I)? pur ...iisnf IC. I%-IT.flTT! biji ‘T’ UC h’t3t Q •tlLt;H 1 rnadq x,j atu’,ju 1 .1 ijia ta)) 14111) t 900t TO Ot P’)Wl IOut/ttUt’fl/h ?jjTIJ tlf .kaOhi!flLOfl Lj )U$J U 1 ppj jI:U1q’J ““c jUJt .i’aI ?4) Aq [h)aPdI ‘ 1’ 1 J114 1(4 .IL T1.)L I. rj ;o sriup%Mrn rrIP1sqn% atit 3flj11(ILI(I1 (‘I 1LI U t’1 ((-i3T she ‘ 1 ) ja)ut’n 1 s’ •1e4; SIj jOQILLPh,UIb( Vi IU en -) p ‘i 1 a ‘II JLU’ ’tIf T-- ‘ tit’ii fl, LM””- 1 ci “ii ‘ •j I ‘iTTIL 1 £1’UtH: p;a’ flLlflj /[ç in, - •f( “lit: V.TL’Litt.t1S U —H I I(kt) 4. 1 .i r r C itS. ft ft I ‘ • I 4) a I % I. “ ji • I ( _I it •%; ;i.I. ‘‘::— •: r; • ‘1’rt •‘.‘ ;. •t—.C, ‘:1 ).1. • .- N “•i’ —J .‘. t I ‘1 ‘C’) -k .% ) j Ii!h1T._T,!1 •‘r-Y!.T”LP’,tA I’ ( (‘i_V -P. Vi41.T’ tJV( , i.c. (j L flT —I V (OjT’; ircj r”-i ‘-tt nb’; t4 ND 9 StLPfl I’i1 s i[JL)1) ‘LI KU) U )f) urTrnaIaq ‘1 “0 1 Ut )fltj tulfltnq fl j TrnuaJ I ‘ ia Ill., t fl’]A I” (I cj7gç?fc I 1 IV’l ) 1 ji UT aiu 1 t’t’airiJ $J .JkiPfl 1 ’P • )LI% ‘Gj .flhIL’ I JL’ I U’ NItUTU •) jut; 14 J N U U II U ) ) ‘ 30 ? C 0 1 fl • u (S S J .1.1 TaT h1.fl.’TUflfl TJ_ 1 •.r s.4 g.%%ln.T I.IJ’” ‘lii )Jt%t ) ).. [IT!t’ )iI’j’ i’ V .jj’ [‘Lii’ La. •i.nja jM L’a .Ur; ‘ K1Sfl I ieqs it fl,U0J9’lTiIC -ic.&t ir ) ‘a IL! )ii%% )‘% )L(l E N ‘CNiJ,T Wtii:ii: I IL!, U passvcl 17’ (1’ ) .) I JI)J P V o9r UJIIJ.’c, .I3IJUfl P’)lTI ‘1 9ig)z’rofll c;ç- i’j iir )t1 ape l ‘L c ci I it In orn 1a Ap cli ile Iiihu. ii TL.g€. ku 13—nc . •r 1 liii r Ni, 1(4, Biuuj/200() c! ate’tl 2:Lfl”. !tflhi ,d (‘‘flhIflJjiTfl! it’ ‘rn h ‘U II i4c r cUr 1’ rd ‘.1 1w he 1> ,n ‘. C nm 111% -in i i Tii. (‘.11. 1. Sn’ “i:il j.t,qnc .. • •.i’ &ar ‘It flic ppenl’ cii’ni ‘111 1.u hc’Lring 1 hic tin YJYLFNDRAKL$IAR!c ft JUDGMENT Rfl 1.1 Nn. 1003/20( 6 ppeal LW the re e”t’e •lnaT Sec flon 2W) A ot tI.e ii i E” 1 i%li I frt t ‘(7 it It (It r N £ B iicl rlneci 2’” j.snu;.iv 2C(’cJ ‘ pt-r .‘nnr’.”u’ ‘ - I 111 1 )LrI Ii -ixi I ‘ ‘c ‘iti ‘ F £ ‘C ‘—C -“fl 7’- •.,V. ‘ ift Ijj’ ( ) ij- ( ‘‘,L”—’ij”•- $ i ,ic :‘ • ‘p ii— •.%%• , 4 r _ ti_c .— I ) I .1- I - . I 1 (If - ‘Jol iii ci b , 1(11 1 1 i I cSS I ( : 1 1 Ii ( ‘iii fit it—. if Sc-c tioi 2(.i:) r(ad iii St 1’nii Z(3bi of th rt n.J t1.ir1ore. t i r’ig set t1 nrclt 1 if On Iouc autliorines, ICVCI1UC 1% 1J)1)ta’ aid posITg 1)1 (U i w 1 th olk 411,, sits i. t CU S I t C Vhet1ier the ri.b’in• Vd% cnntt in tinkling that rha assc-ss€e 1’ ‘lot a credit Instnuion as per Scetlotis 2(5k) and 2158) •)f tli lntercsr ra t’ as the maui businc-&-. ac tWIt% nf i . assc ‘—.er niateb t• ‘iii (jflV l’nt’ lrasir.e. nv rcILa!at hanlciag. hrc.keragc.. Ii l(i(s nil t tin ‘ p_.’fit (fl ‘itlC of C it_ a 1 I It ii tn a r.. C iiU j Sr t P1) t(’ it.tl! L’C Ii ii’ I ,,, •i,sC 1’ ( llt !. 1iSI itt t i 1 r )i’ • Ii tf’c • 1 J t Hi J I I • T’ • ru I t L( ;?5 1 ;‘— r j ‘: ii. • •‘ £ I t - • - • 3• • q i• 1 • It J I () 1%SC%’C h I 111 1 ‘tnii I tix i tic I , I I i lilt t1 Iti1_t)t1IictCltIiti ‘n1’n h’ tix’tiiid hat it ‘ dit m—l if’ tNcn “1 1 ii’ tp.’ flKflhiI )J.. )t t’NInS%i() I J% it €Wrur’ ‘n’der %cction 7(5”4 of Ua kc’l I ihe4 sSe’’Iflt 01111 ci vlio ha’1 occasion to lx k irto tie return wa’ ot the ‘minion thor the tixah1e ritcreL ‘ard the tax thereon s requi ccl U a irput 3 as lice b iTt r b nkc I i c a” ss s 1dm dated 11.10 200() trnoii’it 1s73.$ ) f’ itt C).%) In t Lc’wtnt. !‘) Lt.,.- ‘niun’ (licL1t ‘ R% 24 91. ro’ L) II na Iii’ (in) lr’tcic’,l on ,tatl 1.’ in’ l%e e 27 ‘3b ii’) ;t •, 4 nt Iiu.na is.. P 1 L.. { “I U’. ,‘)O II ti J C)’’’ I 1 R ‘ 1 evil i — —u: v.i’ H’ S ‘2’ •; ii. I ‘1 11 ii. h• 1’ ,‘it’. fA ‘, P • 1 e IL’ 1 • I #1 1 iicl’’ pm .i 3 T(%J3J, I .2 iM26 (lii U i-ic i ticre x’ec p pari 6 Rs. 2 (l• KU f’l Ri .4.9 5 A t ( biiii! 4 fliV (1 b 1 )rIT ft’ ci ‘in app’ alto 11w ( rrni 1 ”ie1 •iI Jnccnrc ‘Las ‘ 1’Iwai%J and met itth pair sun ess ni’iiing ijj rite iedu”ticni nI liability utide’ thi- Ac r. ‘lou the qses%r being ant satisfied uith tills oidei dr (1 bt’irig of the ;e’ that ii is iC dIi’ik tp€i ntxin.k t )I(lIOflS)f 1 i sc. s • t etti ‘u ii i b v ‘S )f apv 1 -‘ ii 1 ‘-i’ 1’ iiibt-at ii • i r d ii ii’iI ‘ 1_I-Il ‘I till %tt j •• • —. ‘: t’7j..’. ‘t L it’ ii I 1:r 1ft i.I .‘. ,,.,Ii-• . • i• i_i •$ ,f. 3 %I )t.% • . 4 . t•_ . ... •. ! p - S ‘tel a%lcIe lb. trclrr a’RI ha’. rwnt rat. ci 1I.t j—st %see ot a 1 . liahli, ‘nulcr ‘fit .‘c fl1 refore. tle pr. s.’iit r 1 7. Xe hdve 1earr1 t 1 1 ) 1 It Sri Suryuiaravana. Inn ned respnnc1tiit C npain. I 4 1’ I I Sr 1 haniaIadha. 1’- ‘rried a C H 1 id “)uilst’l appe irirg tot the h Mr Karnal ic.U ar le ni I tat! for tlit’ zcvenue jhjc tfljj(’fl U% ili;’ugi’ ‘he tin sir T’rn’I ‘ii ia lit r )i J( it in %‘,‘fl o flit øø( tclIVit’t% iii. iliti’— it asiii_ •1 (1 it CUb S a 1% if 1’ it .1 I’• ) ) 1 •. 4. IC lit S )urscI jr’kr’- cd the r id ‘ n irdir t it iiafl%cttIi fl’, Ta ‘a ti t I t I. • ci •1 ‘-C Cu fi !1. 1.1’ 111 In.. ‘——‘ ‘t r’ flt a’ . 1 -I i- I!- ‘I.’ EL’ Iii ; .I•,. t I .. . . . . I LI Ir.nn j Intlil ii ;tiiSctnn1’ that iht Ii ibtiii;il iiiS i k s 1 t iI Hell I P.t’’t’tI i-n Lbs ‘ tib 11111 i i1)t “ I%11!Tial)It’. n jjv ii o si. u a U i14 mg %I it’d it%rlf O fl ‘liii tnt i,.tl senig’ec. ii it nde 1 1 ri s nm hi a-’,ncIiticni hdvn g show ii It, ii am object t ‘ 1 e one I equipflieia. J’—a”ing atid even me se’ mtl niaiii nbjert bC 1 3 11) 1. 1 F 1 ii’] a!I ii ac1 ities being • uher in ihe nit ire ‘t It-.ts11it ic wit C rn di tnt ar kim, c nit aid sm rtia mr ii% tilt 1 lii ), •J’lthv s ‘i)’ ir ctS%C’4 S - trd ean’i’l&, 1 i1%jdt i’d ti.nn’i’ I’ wa’ of ii C S I ‘ 0 I ‘ P’ Yi’ • ii ._i’ tI %“ t • ‘:.e ..j,:’I ,Ii’ —. r ‘•L •.• ‘1 I ( I I. , 1,, 1 • s 1 • r • •‘ I 10 It is al”o snbrmtt d that horn ‘lit material aria 1’ • ‘.. u 1 ibie i”i •he i’st I cc uk’ be iii! r td tiu I it S c ‘(a) it lit ) flhtf. itit I ‘.‘.J Scum n 2(’13) U iii.’ Act and the opunun pres%t’d i tin lilbunal to die ethet that lit as ‘flt- - C )fl lots it quail ‘mitt an 4 th.’ clauses (I) to (.J of Se ioi 213[3) of thc & i is an ‘rroi Iii law • onirnltttd by tic rribtnal ‘tic’ ;T)1i1 1) stlt. Ii )roiisiosis of Sedi )n 2(5k) ai 1 d 2(hB) Ui tiac’ Art and I 1 erefore. tiic’ nrdqar ci tl’e tribunal de.nves a, In ‘Ci aid I 1 %It •kfl t I clii ii It tilt d stipdu t. ‘ ii i U ii I i iic iSIIcr C 1111 ii ur’pr ‘flu tOn %%j it )p•s ‘fl •tti. • siCt 1flfl •iI r’’ ‘hilt lii ‘ii 1 i t’ COMMISSIONER OP INC.OML lAX VS. MOTOR AND GENERAL FINANCE LIMITED ‘:).P .11 i”rnl:. ,1, t) •, sin r — a •‘ •t• ‘S It leaimg with vqLupxnnn It’ t l%im a(’tIVilie% is to be uncle %lflocI t i loan C (flfll’clifl ri liii e - ( nmj.aii -Ml’ in’ iiit b,aii j:,.l • hirghv ii’’ ‘ 1 ‘ud ‘V fl the subnn’,siuii lit-it the ii a’n ‘it fl ir- l tte t,sc ‘‘t e. ( s 1) irg ‘eisiis I’ ‘c If! K U tb ‘z c i In tIc 1 it t — i ai bit 1!... hr tunal claar us al ‘ plac er. reliant a dvi’ion B ‘b h Je ciIozi c,f this fl.t’rr in hit ca%e of C mmlssioner of Iiwc;me 1 .‘x MausLalure Vs. Mi Bhan” Ii Mills Pt ft atti’ L 1 ?i’ C .1 .“rrfr’eretl on 2:’ (‘ete,Ixr 2010 in ‘.“i.. Nn ‘11 i/”0e o’tn - ird wait I T N,%hl29u(t7w)t; i13’i’i0 1- tt ‘i ii ltTr 1 i ii vat 1 ‘‘ rpuy 1 ii %t.i)IV1_(Lt 1 ‘t t Si ( 1’ 1 jaiji ‘ ‘1 3 ’TV the •. rp ‘ - .‘ a! il-I,.-- 41’ 1 1 ‘4”J — •‘‘t ‘‘;.‘ . j it;) • ft ‘ ‘dI . ‘‘:‘‘- I I i’ • I 1 . • 1 -. ‘ - ‘ • I 12- 13. Mr. Kasnaladhar has also brought to our attention the definition of the word merchant bank as indicated in wikipedia. the free encyclopedia. “A Merchant Bank is a financial institution which provides capital to companies in the form of share ownership instead of loans. A merchant bank also provides advisory on corporate matters to the firms they lend to.” and on the basis of such definition, urges that a merchant bank could also be taken to be a financial institution within the scope of the provisions of Section 2(5A) read with Section 2(58) of the Act. 14. Mr. Kamaladhar has also drawn our attention in specific to Section 2(5A)(i) of the Act and Section 51 of the Banking Regulation Act, 1949. to submit that assessee —Company being a subsidiary of Canara Bank. a scheduled Bank. that it fits into the definition of a credit institution within the meaning of fr - Stctioii 2( s jt) d ‘he % iii h tint h .i k n t’ II ‘h bunal in .“sehz It as,’ stt (C inpa: y ft ri tlit ) ) i it i ) hitch irr (1 1 1 At’ f ctlur I 4’(.I is lit fther v411d jiisflftiblt If. On tht ntlwi ham. •Pc submission f Sri Stinaiiarr’ana Ic i ned junsci to tin responclenr - -l’esce Is hat the Sc opc (S chars and 1 1u (TSOi) on iiiorn tha thaige is I’ b b’,terc 1 s d 1 r c ‘. r fl ic rnbIons U SectAnls 1 :1 d 5 tad with S action 5A ml 2(313) jIll r Au li t ‘1’ •isess e - C.’mpan is no at Iiict. Its into eitlit ti d.flmtinr 1 a L tcd 1 t I is’itiu • i ‘vi F ii di’ r i r 1n t I t ) i i-j 3A I I (t ‘1 T’ , ifl( I I ( ‘ri’) i Wall’ 1 1’ ut t ii ‘1 S Ctit’Ia “I)’)) 1 i i i nil i rcf . - itunni ;h - ( un ; I,tj It’i tip •‘— ‘ (m”€1’ •1 ‘a I..• - ‘ii.’ -‘ ii. p ; i • U’ ‘ %i I I). Ij 1 V i V (It ‘‘. 4 •14- “2(5A) “credit institution” means,— (1) a banking company to which the Banking Regulation Act, 1949 (10 of 1949). applies (Including any bank or banking institution referred to In section 51 of that Act) 21 * 9: (ii) a public financial Institution as defined in section 4-A of the Companies Act, 1956 (1 of 1956): (iii) a State Financial Corporation established under section 3 or section 3-A or an institution notified under Section 46 of the State Financial Corporations Act, 1951 (63 of 1951); and (lv) any other financial company; 2(5B) “financial company” means a company, other than a company referred to In sub-clauses (i), (ii) or (Ill) of clause (5-A), being— (i) a hire-purchase finance company, that is to say, a company which carries on, as its principal business, hire-purchase transactions or the financing of such transactions; (ii) an investment company, that is to say, a company which carries on, as its principal business, the acquisition of shares. stock. bonds, debentures, debenture stock, or securities Issued by the Government or a local authority, or other marketable securities of a like nature; 4—- )r c ii ) icli’r b(jt11sitiotI ‘U (It%I’l(JI)fl1t I’! ft Ian’) IP ‘ (‘fliw(ik.n thtrr i’Ii: (i’) a I’an un 1 pati1 that N to a ci’nipan% (not lint. a ccnu. in n r ‘d to n iii ci us , i) a Ii ifl wi cli cai-i s cn. (% it% prim TM bust ws the l)LNIIIC’S’ of pros idin flna’we. whether 1w iii as d ii tli w (vj a in’n u-ti bn”-tit fInance compn ih ii to r a hi ito jnii htisinesr. the hucine%s ul a eeptance of deposlt% from a it n bets iti wi act is ck ‘hared b if ( at d k ‘rut ii a It s ct )fl 62) o ti Coinpaiiies Act. 195b (1 of 1956j tu be a idbi 0? fvut a Be ‘1 9 1 I * 1’’ refrrrr (1 (‘ ii ‘:‘ rI fi’) nhat.a en ) 111% ii 1 tT 1 ?jip.1s’ S tU L 1 I°fl ,- I Ii .1 1 i ii i.’ •, ii Jr ‘I I 41 si ‘1 C. -1’ 1 .t% ‘‘ ( I I i) I ii ii Ii it t. if)) ti compar whsl. ‘an es on. as lflI%iik-%% the I’U’4iifl%% i tin t s 1 its principal fInau ing of (3 isda oh than a financial nnilpanv 1au ‘s ‘iJ LII ( ii jig ‘,r e njn lith ((1’ (hem. or ;irrJilflt’iflCfll i, 11. 1 I • !fl s’ib I 10 S t .i e at na’re r’tlecl L I. jt 1 6 hr r • i N nil dii 1 to_i a ceiL’ 1 -t.O’ 1 . ‘.i h ,.‘le •‘ 1. nib • ijt’ ,i’--’ •h I i • I T a i; i r. t,. It •I 11 .1 •1 -16- submission of Sri Suryanarayana is that the assessee — Company is not a banking Company within the meaning of Section 2(5A)(i) of the Act; that though a subsidiary Company of MIs. Canara Bank. by itself, it is not a banking company. Section 2(5Afli) of the Act does not apply as this provision of law applies only to a subsidiary bank and not to all subsidiaries of a banking institution. It is consequently urged that even assuming for argument sake that a leasing transaction can be taken within the scope of loan transaction, but not conceding the point, as the view taken by the Delhi High Court has been reversed by the Supreme Court In the case of MOTOR AND GENERAL FINANCE LTD. VS. COMMISSIONER OF INCOME TAX reported In 334 ITR 33 and the Supreme Court having set aside the judgement rendered by Delhi High Court and the matter having gone back to the High Court and in turn, to the lower forum, the matter is not conclusive one way or the other to hold that a Company carrying on leasing activity is also iii the nature of a loan Company and in “V a titii, till% Ic t I Its ; Pt’I the ItIif11i114 til l T ie . %‘,t’SiflL :‘tITIiOrIt . It IslflL €h lI 11% iii IIL’ a%’•s’ c’ C ..Ml%tllLttt t’fl!’ .ib;tit 2t” )( ic cii tin ( i dc %s (na’ nctiisxV- ii L’ee 1 oc caifi w”tlvitit s n en IlL wrnl of Set lion 2(513) rlausr (vu c’I the Ad. the .as%e%%re ( nmptuw “ors nut quauI5 for tI:t of iii I nitn t ic r ic ( ( tat U -t’Ius hhIgrtn Fs ( t (1 rto 1 31%C’ d 11(11 t’cjn’titiiii the ieiiit uhilch i’ ext”L;isjyciv r .jlfl ,sf (‘V’i1i’,iri (alike ! Gil L’v lit- .-ss’es,ce )t)c.’ ritini I ittit leic ieF, shi ‘thu f1 u a at nd ti r, ,I ‘ui•’1 Ii )% ! t—tl tIlt t 11 fl. 4 l “L$fufleq ,;s i,r .apq V)t) 1 T. 1 ( !i’ r”. t 4i tInt J_ ‘$ f 4 ii ti ‘I• ‘i——.I 1 ‘, — -I J ;,e • . . . ;. -; I. • • t.. .. . — • ——I I I 1R ‘itt 1 SC’TT fticltit ‘%tIX(t ) II ci c drc cii ii &ctL le id ‘ix st 1% iii lit t t( q S t’)’i 3 1 in ‘Sc iiiil liii’ %(i)IW ot iii.’ t ‘‘cIiQt’ 1% •iitlic 1 i’..i ifl St—ciieii 3 ..t tht .‘Ll aiiti it b 111 rc SIWL’t L’ cllarge€tbit iTItrrSt (it âI13 et nsv I cr ci inn ut lii I i’ x .fl%t fi hi 1 1 Cl % fO r i iii credi I icftuflca s lflW rnor in t rnd I is 1 b touncj tither in SerLfrmu 2(3i) pti r nr it i’. a irsiCkian flnaw lad £ nmpam not ‘ ereil under Jati%n Ii) to (in) n St ncn A ½) ii Ti :t Cdlfl an 0th ila.chtflfl. ( i r ( ) i. i v tsc1J1 (‘lilt Vit’fstiii. ‘SI ‘ &cj .1)111 ‘ft —s ii).11(1 • 1 1 _, ,_ Ii - I 1- %S I. ‘ I I’ I ‘•—• •— II ‘ %I •‘• V J , ‘ ft,’ •i.i • i I, in 0 nellc ‘‘ri I ‘‘, iii t 1 Cc nj ny ‘s,Vtl i S U -i 5 )( yin d a L 1 S r iii Conl’Ir3 1’ “, nlti 1 %i1 % 1(t. it’, wldinc (nrp Ii 41 ci I k s lu Ii. .%. ._. .1; ,. Ia 1- ‘,e ( i ii t ss’( I I c , ‘ iI’L lcdl3’i k — 1—. ILI• *‘ C 20 Th ‘uircr1 I it a I Wn .011 ‘1 V also r lx takcn a’, i lo ii C oirp’ii Ii )U p 11w is an aigument vi it’h ma’s C irs n i ii i to ii defmilon % a 1 “& i C )f ip n is s’ ‘r flt ii at hi’,Ui’ui )i 1i )‘L prizic ii 1 bu’ir s ih t 14 t l)rovIdlii c tin an ‘c wtu hc r bs v ot ‘car ‘i ‘ i’ ‘ • -ti enva c ‘Vi—ik i U pitt. iblc ‘s ( a Ia s idlStt t I)i ‘. it €ds I 1)1 P1 it ‘ftii 1( O)t 0 I ai’ V na 1(11 IL tjç I I t’ 1311 14 . 1 L 1 I . 1 )11L4’a 1 1’ 4. IV . I I I ‘I? cs%st t )ntfttt ri’,29 cii b’ e cit Y ‘ iI :i%%”%f’t C flflioalfl 1 ‘10 it is sc tg i’i Ccfl I uslbl tqrc. gli wtl 1 11% %C ‘X ol Sc LI 1 (53) laust (iv) ‘t ilw Au. Vlii1e the b arned (must— 1 fr liii ‘n’ flue 11j% urged tli.iI it eaii be biotight within the o c L ii ft t iterdif t ‘rirtieissesset (rnoarrlUnth s p 0th’ pr()i%i4-:I) .ii%C’. dUd 9% pninte’l .:tlt by Mr. Sun afla! c 2 ‘:ii i. @VCJ . Mis’ “liiieoii S i-it ‘.n in-’ ) ‘ic’s hi lit ‘(U :11) c lil tilt’iflt’VCJmi(k 15”ibuilis’i ado C 1 uU%i - (ii. (±1’ üiiI. t ivi h ) rovi (t”iI q t vij ot %.acfiejtj P 1 . 1 h •t :hki ct ‘bsi’1. 11 ;k’i’ l). 1 rJ4ifi... I (I t I ( - S ‘ttflb 1(1 L ii i 1LI1i11 • C; .‘tas)i’ —I 23. tn fa 1’ 1 (mcI t se’ lii 1 cTI flL. I I IC I. 1I1 t’tB) if th V lx ( i nip m’ i%se’,sIflelit ‘wiF r. arth itW% I ‘,fli 1dc I is It” V dccl horn tin rc c. r 1. 1 C 111% iiIflhlIIiL! Lii i 11(1111 1 (fl) 1%’ ‘W 11W’’ i. ! fri t i ; I 11(1 ‘1 lau (I) to a) ‘1 S • 11011 I i th ‘ “tel ish c )( h In (4 ib’ rhzs is ‘ I lou on perusal 01 the whfrli lucia ,t ‘s thai dillereur the s’,cqn n q eat TLefl Iti( C’ lit’ • . ( (flf ‘, I Ii 1.1 a ‘11)3 I ‘•i’ ii UI 4 I : I J? iii II ( I 11 ,‘S “it I 74 Tj sticli clicur sI 1 tii. lrk.nunai i .n eruo’ tesjnavlcle:,. c “nipar i—’ ii a at iI(1&% fl i lit hull iii • I i:’ rv : ‘ hr ‘I e ct’p’ ) S nI:. )I It ‘Ct10i 2 1t £ ‘cc’. e ‘at not bc, 1 d that In ((IX Iii I rig thaT tlt IcI’)k ‘. t X nut • r thi klinutlon • Ii i • Ia! ii tt’( lit it •l — I 4 RE. I.T.A. No.1002/2006 CJW ITA No.1391/2006 These two appeals by the revenue arc also relating to the very assessee as was Involved In the above appeal. The question also being the same. arising In respect of a different assessment years. namely. In I.T.A. No.1002/2006 relating to the assessment year 1993-1994 and l.T.A. No.1391/2006 relating to the assessment year 1997-1998, the question which Is common in these appeals Is answered as in the above appeal. In ETA. No.1002/2006, though the other question relating to the validity of reopening of the assessment Is also involved as the main matter Itself has been decided against the revenue, the question relating to reopening of assessments becomes academic and does not survive for an Independent answer. In view of our disposal of I.T.A. No.1003/2006 above and answering the question in favour of the .1 41 L ‘ii lb - — )qI ‘%LlIe?jl’ J%% •..%t I 31(1 T’ I Dtu UI lU ! I” I;’’fl%..:Ll) It’!iT’t’l’i(Itt”t •tYJ LLJItt1%L (I.)%%bTILt%4() U%( . •%tt.dt1V •U -‘ “(i P .)t1(1t )T(l dtt,’.% 1 111t!I1 PTII’ )9 %SI’ "