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TMI Blog2002 (10) TMI 20X X X X Extracts X X X X X X X X Extracts X X X X ..... d the appellant to approach this court for relief and the valuable time of this court was taken for the disposal of the appeal in the manner done, we are of the view that such lapses on the part of the public sector undertakings cannot be allowed to go unnoticed. - - - - - Dated:- 31-10-2002 - Judge(s) : G. SIVARAJAN., K. BALAKRISHNAN NAIR. JUDGMENT The judgment of the court was delivered by G. SIVARAJAN J.-This appeal is filed by the Lord Krishna Bank Ltd., Kochi, an assessee to income-tax, against the order dated April 29, 2002, in I.T.A. No. 644 (Coch) of 1996 passed by the Income-tax Appellate Tribunal. The only issue that arises for consideration in this appeal is as to whether the Appellate Tribunal was justified in holding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the first appellate authority observed that the question whether interest on securities is business income or income from other sources is a debatable issue and hence it does not come within the purview of the prima facie adjustment contemplated under section 143(1)(a) and the addition made was accordingly deleted. This order of the first appellate authority was upheld by the Tribunal in I.T.A. No. 285/Coch of 1995 (annexure A). Thereafter, the assessing authority completed the assessment for the year 1993-94 under section 143(3) of the Act by disallowing the claim for set off of the carried forward the business loss of the earlier years for the very same reasons. The first appellate authority allowed the appeal by holding that the appella ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pellate authority and restored the order of the Assessing Officer on this point. Shri Joseph Markose, learned counsel appearing for the appellant, submits that in fact the authorised representative of the assessee, by letter dated April 16, 2002 (annexure L) requested for 15 days' time for filing the required papers. He further submitted that the Tribunal, without affording an opportunity to the appellant to produce the documents, had rejected the appeal stating that the assessee has not proved its case with supporting documents. Counsel further submits that the appellant was ready with all the required details immediately thereafter, and further submitted that the requirement of production of evidence regarding the true nature of the sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... horities including the Income-tax Appellate Tribunal on this point and remit the matter to the Assessing Officer to consider the claim of the assessee for set off of the carried forward business losses of the previous years against the interest income for the year 1993-94 in the light of the principles ascertained and stated in the order of the Appellate Tribunal. It is open to the parties to rely on other binding decisions, if any, on this point at the time of passing fresh orders. Before parting with the case, we note that the Appellate Tribunal has rejected the request of the appellant for adjournment of the case made in annexure L letter with the following observations: "5. When the proceeding was called on for hearing, Shri E.S. Kann ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e have already extracted, it would appear that sufficient time was given to the appellant to produce the compilation of the details regarding the nature of the securities, etc., but the same was not availed of. Having regard to the fact that the Tribunal had to decide the appeal against the assessee only because of the lapses on the part of the appellant which led the appellant to approach this court for relief and the valuable time of this court was taken for the disposal of the appeal in the manner done, we are of the view that such lapses on the part of the public sector undertakings cannot be allowed to go unnoticed. We accordingly direct the appellant to pay a sum of Rs. 5,000 (rupees five thousand only) to the Kerala Legal Services Au ..... X X X X Extracts X X X X X X X X Extracts X X X X
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