IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE V.K.MOHANAN WEDNESDAY, THE 16TH SEPTEMBER 2009 / 25TH BHADRA 1931 ITA.No. 925 of 2009() --------------------- ITA.44/COCH/2000 of I.T.A.TRIBUNAL,COCHIN BENCH .................... APPELLANT/APPELLANT: -------------------- THE COMMISSIONER OF INCOME TAX, COCHIN. BY ADV. SRI.P.K.R.MENON,SR.COUNSEL, GOI(TAXES) SRI.JOSE JOSEPH, SC, FOR INCOME TAX RESPONDENT(S): --------------- THE TRAVANCORE COCHIN CHEMICALS LTD, UDYOGAMANDAL. THIS INCOME TAX APPEAL HAVING COME UP FOR ADMISSION ON 16/09/2009,ALONG WITH ITA NOS.1023,1048 & 1518 OF 2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.N.RAMACHANDRAN NAIR & V.K.MOHANAN, JJ. .................................................................... I.T. Appeal Nos.925,1023,1048 & 1518 of 2009 .................................................................... Dated this the 16th day of September, 2009. JUDGMENT Ramachandran Nair, J. The question raised in all the connected cases is whether the Tribunal was justified in confirming the order of the first appellate authority declaring eligibility of the respondent for deduction of the service charges paid to State Government. It is admitted that the respondent is a fully owned State Government undertaking which is bound by Government Orders. The Government constitute the Board of Directors of the Company with it's nominees including Government Secretaries and Government goes to the rescue of the Company whenever it is in difficulties. In fact we have considered in detail various services rendered by Government to Government Companies in our decision in I.T.A. No.262/2009 and connected cases which pertains to another State Government undertaking. Even though Standing Counsel for the appellant contended that the service charges paid is not for actual services rendered, we do not think there is any scope for this 2 court examining whether the payment is in proportion to the services rendered by the Government. It is seen that the Tribunal has confirmed the order of the first appellate authority following their decision in another case which is confirmed by us vide our judgment abovereferred. Following the said judgment we dismiss the appeals filed by the department. Registry will attach a copy of the judgment in the above cases to form part of this judgment. C.N.RAMACHANDRAN NAIR Judge V.K.MOHANAN Judge pms