IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE K.SURENDRA MOHAN FRIDAY, THE 13TH FEBRUARY 2009 / 24TH MAGHA 1930 ITA.No. 81 of 2008() -------------------- ITA.293/COCH//2000 of I.T.A.TRIBUNAL,COCHIN BENCH .................... APPELLANT ----------------------------- THE COMMISSIONER OF INCOME TAX THIRUVANANTHAPURAM. BY ADV. SRI.P.K.R.MENON,SR.COUNSEL,GOI(TAXES) SRI.JOSE JOSEPH, SC FOR IT RESPONDENT(S): --------------- M/S.KERALA STATE INDUSTRIAL PRODUCTS TRADING CORPORATION,THIRUVANANTHAPURAM. THIS INCOME TAX APPEAL HAVING COME UP FOR ADMISSION ON 13/02/2009,THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.N.RAMACHANDRAN NAIR & K.SURENDRA MOHAN, JJ. .................................................................... I.T. Appeal No.81 of 2008 .................................................................... Dated this the 13th day of February, 2009. JUDGMENT Ramachandran Nair, J. The only question raised pertains to validity of revised income escaping assessment completed under Section 148 of the Income Tax Act. We have heard Standing Counsel appearing for the appellant. 2. After hearing counsel and after going through the orders of the lower authorities, we find that the purpose of reopening was to bring to tax interest on deposits and to disallow expenditure incurred by the company by way of service charges paid to the Government pursuant to Government Orders. It is seen that both the appellate authorities have not considered the case on merits. However, they allowed the assessee's claim on the ground that reopening is bad because all the material facts were available in the assessment record. Since on facts both the CIT(Appeal) and the Tribunal found that material facts were disclosed and there was no justification for reopening the assessment, we do not think it is a fit case for entertaining appeal. We, therefore, 2 dismiss the appeal. However, our judgment should not be taken as a decision rendered on merits on the issues raised. C.N.RAMACHANDRAN NAIR Judge K.SURENDRA MOHAN Judge pms