Commissioner of Income Tax vs Santhi Chitties P. Ltd.

C.N. Ramachandran Nair, J.—This appeal is filed by the Revenue u/s 21 of the Interest-tax Act, 1974, read with Section 260A of the Income Tax Act, 1961, against the order of the Income Tax Appellate Tribunal, Cochin Bench, which disposed of an interest-tax appeal for the assessment year 2000-01. The High; Court Registry raised an objection regarding payment of court fee of Rs. 10 under Article 3(iii)(c) of Schedule II to the Kerala Court Fees and Suits Valuation Act, 1959. The Registry had intimated the appellant that the minimum court fee payable in this case is Rs. 500.

We have heard standing counsel appearing for the Revenue and the Government pleader appearing for the state in this matter. We feel that the objection raised by the Registry is tenable because Article 3(iii)(c) of Schedule II to the Kerala Court Fees and Suits Valuation Act and Rules provides as follows:

From an order of the Appellate Tribunal under the Income Tax Act, 1961, or the Wealth-tax Act, 1957:

(a) where the total income of the assessee as computed by the Assessing Officer, in the case to which the appeal relates is one lakh rupees or less, is Rs. 500.

The argument of the standing counsel that the order issued by the Tribunal is one under the Income Tax Act, 1961, is tenable because Section 21 of the Interest-tax Act adopts the appeal provisions under the Income Tax Act. Section 21 of the Interest-tax Act also clarifies that the provision of Section 260A of the Income Tax Act shall apply with necessary modifications to the provisions of the Interest-tax Act. Therefore, that appeal disposed of by the Tribunal is in exercise of their appellate powers conferred under the Income Tax Act incorporated in the Interest-tax Act, u/s 21.

This appeal is also filed u/s 260A of the Income Tax Act read with Section 21 of the Interest-tax Act. We are of the view that the provision regarding court fees payable in all appeals against the orders of the Appellate Tribunal under the Income Tax, Act/Interest-tax Act are coming within the purview of Article 3(iii)(c) of Schedule II to the Kerala Court Fees and Suits Valuation Act and Rules. In fact, the most specific provision under which this appeal falls is Article 3(iii)(c). of Schedule II to the Kerala Court Fees and Suits Valuation Act and Rules above stated. Consequently, we hold that the court fee payable in this case is Rs. 500 and not Rs. 10. The appellant will deposit a further amount of Rs. 490 towards the balance court fee within two weeks from receipt of a copy of this judgment.

So far as the merits of the case are concerned it is conceded that the issue raised is covered by the decision Of the Supreme Court in Commissioner of Income Tax Vs. Corporation Bank, in favour of the assessee. We, therefore, dismiss this appeal following the abovesaid decision of the Supreme Court.