IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE B.P.RAY MONDAY, THE 23RD MAY 2011 / 2ND JYAISHTA 1933 ITA.No. 205 of 2001() --------------------- AGAINST THE ORDER DATED 03/07/2001 IN COCH. IN ITA.282/2000 of I.T.A.TRIBUNAL,COCHIN BENCH .................... APPELLANT / RESPONDENT -------------------- COMMISSIONER OF INCOMETAX, TRIVANDRUM. BY ADV. SRI.P.K.R.MENON,SR.COUNSEL, GOI(TAXES) SRI.GEORGE K. GEORGE, SC FOR IT RESPONDENT(S): / APPELLANT --------------- THE KERALA AUTOMOBILES LTD., TRIVANDRUM - 695 123. ADV. . SRI.A.K.JAYASANKAR NAMBIAR THIS INCOME TAX APPEAL HAVING BEEN FINALLY HEARD ON 23/05/2011, ALONG WITH ITA NO.12/2002, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.N.RAMACHANDRAN NAIR & BHABANI PRASAD RAY, JJ. ---------------------------------- I.T.A. Nos.205 of 2001 & 12 of 2002 --------------------------------- Dated, this the 23rd day of May, 2011 J U D G M E N T Ramachandran Nair, J. Question raised pertains to disallowance of interest under Section 43B of the Income Tax Act in Section 154 proceedings. However after going through the records and after hearing learned counsel appearing for both sides, we notice that the respondent Company, which is under the control of State Government, is in heavy loss and the loss allowed by the Officer itself for one year is above Rs.88 lakhs, which has gone up to above Rs.1.03 crores in the succeeding year. Going by the trend and the loss allowed, we do not think the Department can get any tax from the respondent in the near future, even if appeal is allowed cancelling the small disallowances. Therefore, these I.T.Appeals are dismissed. (C.N.RAMACHANDRAN NAIR, JUDGE) (BHABANI PRASAD RAY, JUDGE) jg