Kerala High Court
M/S. Coastal Resorts (India) Ltd vs The Assistant Commissioner Of Income ... on 28 February, 2007
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT:
THE HON'BLE THE CHIEF JUSTICE DR. MANJULA CHELLUR
&
THE HONOURABLE MR.JUSTICE A.M.SHAFFIQUE
THURSDAY, THE 20TH DAY OF MARCH 2014/29TH PHALGUNA, 1935
ITA.No. 41 of 2014 ()
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ITA. NO.256/COCH/2013 OF INCOME TAX APPELLATE TRIBUNAL,
COCHIN BENCH.
.........
APPELLANT/APPELLANT:
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M/S. COASTAL RESORTS (INDIA) LTD.,
CASINO HOTEL, W/ ISLAND, KOCHI- 3,
(PAN: AABCC3161C)
BY SRI.JOSEPH MARKOSE, SENIOR ADVOCATE.
ADVS. SRI.V.ABRAHAM MARKOS,
SRI.BINU MATHEW,
SRI.TOM THOMAS (KAKKUZHIYIL),
SRI.ABRAHAM JOSEPH MARKOS,
SRI.ABRAHAM VARGHESE THARAKAN.
RESPONDENT/RESPONDENT:
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THE ASSISTANT COMMISSIONER OF INCOME TAX,
CORCLE -1(2), KOCHI -682 018.
BY ADV. SRI.JOSE JOSEPH, SC, INCOME TAX
THIS INCOME TAX APPEAL HAVING COME UP FOR ADMISSION
ON 20-03-2014, THE COURT ON THE SAME DAY DELIVERED THE
FOLLOWING:
rs.
ITA.No. 41 of 2014
APPENDIX
PETITIONER'S ANNEXURES:-
ANNEXURE A COPY OF THE GOVERNMENT ORDER DATED 28/02/2007
TOGETHER WITH TRANSLATION AND A GIST THEREOF.
ANNEXURE B COPY OF THE LETTER DATED 30/03/2007 ISSUED BY THE
TAHSILDAR, TALUK OFFICE, KOCHI TOGETHER WITH THE
TRANSLATION THEREOF.
ANNEXURE C COPY OF THE INTERIM ORDER DATED 18/08/2009 OF THE
KERALA HIGH COURT IN WP(C).NO. 11776/2007 FILED BY
THE APPELLANT.
ANNEXURE D COPY OF THE ASSESSMENT ORDER DATED 15/12/2009
PASSED BY THE RESPONDENT.
ANNEXURE E COPY OF THE APPELLATE ORDER DATED 08/03/2013
PASSED BY THE COMMISSIONER OF INCOME TAX (APPEALS)-II
KOCHI.
ANNEXURE F COPY OF THE APPEAL DATED 09/04/2013 PREFERRED BY
THE APPELLANT BEFORE THE INCOME TAX APPELLATE
TRIBUNAL, KOCHI BENCH.
ANNEXURE G CERTIFIED COPY OF THE IMPUGNED ORDER DATED 25/10/2013
PASSED BY THE INCOME TAX APPELLATE TRIBUNAL, KOCHI
BENCH IN ITA. NO.256/COCH/2013.
RESPONDENT'S ANNEXURES:- NIL.
//TRUE COPY//
P.S.TO JUDGE
rs.
MANJULA CHELLUR C.J.
&
A.M.SHAFFIQUE, J.
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I.T.A. No.41 of 2014
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Dated this the 20th day of March, 2014
JUDGMENT
Shaffique, J This appeal is filed against the order passed by the Income Tax Appellate Tribunal, Cochin Bench in ITA No.256/Coch/2013. The assessment year under consideration is 2007-08.
2. The facts involved in the case would show that the assessee took a certain extent of land on lease from Government of Kerala and constructed a building for business purpose. After the expiry of the lease period, the Government did not extend the lease. This matter was under challenge before this Court and there was a stay of the directions issued by the Government and a direction to maintain status quo.
3. During the year under consideration, the assessee claimed written down value of cost of construction as revenue I.T.A. No.41 of 2014 2 expenditure, under the head `current repair'. This was not permitted by the assessing officer. Matter was confirmed in appeal and further, matter was carried in appeal before the Tribunal.
4. The Tribunal found that the assessee continuing in possession of the property after expiry of the lease period has to be construed as holding over of the property after expiry of lease period. Therefore, there is no question of allowing the written down value and cost of construction as 'current repair'. Further it is found that, 'current repair' is an expenditure incurred by the assessee for the purpose of maintaining machinery, building etc. used for the purpose of business and therefore it cannot be the written down value of cost of construction. The Tribunal also came to the finding that the judgment relied upon by the assessee in TVS Lean Logistics Ltd 293 ITR 432 (Mad) has no application to the facts of the case.
5. It is apparently clear that assessee cannot claim the benefit of written down value of cost of construction which he I.T.A. No.41 of 2014 3 had incurred under the head 'current repairs'. Hence, we do not think that any question of law arises for consideration in this appeal.
Accordingly, the appeal is dismissed.
MANJULA CHELLUR, CHIEF JUSTICE A.M.SHAFFIQUE, JUDGE.
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