1997 PLP 663 (PTD)
KERALA FINANCIAL CORPORATION and others Versus COMMISSIONER OF INCOME TAX
| Citation | 1997 PLP 663 (PTD) |
| Forum / Court | 218 I T R 159 |
| Bench Members | Kuldip Singh and B.L. Hansaria, JJ |
| Parties | KERALA FINANCIAL CORPORATION and others Versus COMMISSIONER OF INCOME TAX |
| Primary Law | Income-tax |
Q1: What are the key laws and sections cited in 1997 PLP 663 (PTD)?
This judgment primarily cites: Income-tax as referenced in Pakistani case law index.
Q2: Which judicial bench decided the case 1997 PLP 663 (PTD)?
The case was heard and decided by the 218 I T R 159 bench comprising: Kuldip Singh and B.L. Hansaria, JJ.
Q3: What is the official citation format for this judgment on Pakistan Law Portal?
Cite this legal precedent as: 1997 PLP 663 (PTD) (KERALA FINANCIAL CORPORATION and others Versus COMMISSIONER OF INCOME TAX). Read the full summary and cross-referenced laws free on Pakistan Law Portal.
Laws Cited
Representation
- J. Ramamurthy and B.B. Ahuja, Senior Advocates with (R. Satish and B.K. Prasad with them) for Appellants.
- P.S. Poti, Senior Advocate with (N. Sudhakaran with him) for Respondent.
Headnotes / Summary
Sticky advance
Advance written off
Steps could be taken in accordance with provision relating to bad debts
Observations in Kerala Financial Corporation (1994) 210 ITR 129 that refund could be claimed of tax paid on interest
To stand deleted. The majority in State of Travancore v. CIT (1986) 158 ITR 102 (SC) had held that in case of "sticky advances", on the assessee writing off the advances, the same would become bad debts and could be so dealt with by the assessee as permitted by the relevant section of the Income Tax Act. 1961. In Kerala Financial Corporation v. CIT (1994) 210 ITR 129 at page 134 (SC), the Court observed that on the advances becoming bad debts, refund of tax paid on the interest could be claimed by the assessee in accordance :with law. The majority in State Bank of Travancore (1986) 158 ITR 102 had not said so. On applications by the Department, the Court stated that the observation in Kerala Financial Corporation (1994) 210 ITR 129 relating to refund of tax would stand deleted. State Bank of Travancore v. CIT (1986) 158 ITR 102 (SC) and Kerala Financial Corporation v. CIT (1994) 210 ITR 129 (SC) ref.
Judgment & Decree
B.L. HANSARIA, J.
These applications are by the respondent (Revenue) in the aforenoted appeals, which were disposed of by judgment, dated May 12, 1994 (see (1994) 210 ITR 129). It has been averred in these petitions that what was held in paras. 9 to 15 of the judgment is not consistent with what was decided by the majority in State Bank of Travancore v. CIT (1986) 2 SCC 11; (1986) 158 ITR 102, which view was followed- while disposing of the appeals. This stand has been taken because what the majority had held in the aforesaid case was that in cases of "sticky advances" what could really be done is that on the assessee writing off the advances, the same would become bad debt and could be so dealt by the assessee as permitted by the relevant section of the Income Tax Act, 1961. In the aforesaid paras., however, it came to be stated that on the advances becoming bad debts, refund of tax paid on the interest could be claimed by the assessee in accordance with law. It is apparent that the majority in State Bank of Travancore's case (1986) 158 ITR 102 (SC) had not said so. This is I not disputed by Shri Poti who had appeared for the appellants. It is accordingly stated that the observation made relating to refund of tax in the aforesaid paragraphs of the judgment would stand deleted. Instead we state on the advances being written off, steps could be taken by the assessee in accordance with the provisions of the Income-tax Act relatable to bad debts. The applications are disposed of with these observations M.B.A 114/FC Order accordingly.