IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE B.P.RAY WEDNESDAY, THE 16TH MARCH 2011 / 25TH PHALGUNA 1932 ITA.No. 1281 of 2009() ---------------------- ITA.760/COCH/2004 of I.T.A.TRIBUNAL,COCHIN BENCH .................... APPELLANT/RESPONDENT ---------------------------------------- THE COMMISSIONER OF INCOME TAX, THIRUVANANTHAPURAM. BY ADV. SRI.P.K.R.MENON,SR.COUNSEL, GOI(TAXES) SRI.JOSE JOSEPH, SC, FOR INCOME TAX RESPONDENT(S): APPELLANT ------------------------ M/S.STATE BANK OF TRAVANCORE, POOJAPPURA, THIRUVANANTHAPURAM. ADV. SRI.P.BALAKRISHNAN (E) FOR R THIS INCOME TAX APPEAL HAVING BEEN FINALLY HEARD ON 16/03/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C .N. RAMACHANDRAN NAIR, & BHABANI PRASAD RAY, JJ. -------------------------------------------- I. T. A. No. 1281 of 2009 -------------------------------------------- Dated this the 16th day of March, 2011 JUDGMENT Ramachandran Nair, J. When the appeal is taken up for hearing counsel appearing for the respondent-Bank submitted that Committee on Disputes' approval is not obtained by the revenue to file appeal against the assessee, which is a public sector undertaking. However, standing counsel appearing for the revenue produced a copy of Constitution Bench judgment of the Supreme Court in Civil Appeal No. 1883 of 2011 whereunder the Supreme Court has declared the requirement of approval by CoD for filing appeal as unnecessary. In this case question may arise as to whether the judgment of the Supreme Court applies only prospectively or not. However, in this case we do not think there is any need to consider the same because CoD approval is already obtained by the revenue for filing appeal. Consequently we proceeded to hear the appeal on merits. 2. The only question raised is in regard to validity of addition of ITA 1281/2009 2 proportionate expenditure attributable to exempted income in the course of completion of book profit assessment under Section 115JA of the I.T. Act. While hearing another appeal filed against similar assessment of another bank, we have considered the issue and in that judgment we remanded the matter to the assessing officer to specifically consider the disallowance with reference to sub-clause (f) of Explanation to Section 115JA which was not considered by the assessing officer in that case. However, in this case, disallowance is specifically made with reference to the above provision, which is only Rs. 1 crore. Therefore following the judgment in I.T.A.Nos. 1758, 1772 and 1778 of 2009 we allow the appeal filed by the revenue by reversing the order of the Tribunal and restoring the order of the first appellate authority confirming the disallowance to the above extent. (C.N.RAMACHANDRAN NAIR) Judge. (BHABANI PRASAD RAY) Judge. kk ITA 1281/2009 3