JUDGMENT

I.T.A. Nos.193 of 2012, 185, 200, 206, 207, 227 of 2013, 92 & 93 of 2014 Dated this the 22nd day of July, 2021 Bechu Kurian Thomas, J.

This batch of appeals relates to the assessment years 2004-05 till 2009-10. The issues raised in all these appeals are similar if not identical and hence we heard these appeals together. Except in two appeals, the questions raised are all the same. In those two appeals, additional questions of law have been raised. We, therefore, proceed to consider ITA No.185 of 2013 as the first and lead case. The remaining appeals are considered one after the other in this judgment itself.

I.T.A. No.185 of 2013 (AY 2004-05)

2. Though this appeal was admitted on six questions of law, three main issues arise for consideration, and hence we re-framed the questions of law into three, and they are as follows:

(i) Whether the lease rent received by the assessee for the year

2004-05 from M/s. Apollo Tyres Limited is to be treated as business income or as income from other sources?

(ii) Whether the penalty of Rs.52 lakhs imposed under section

45A of the Kerala General Sales Tax Act , and paid under orders of the High Court, ought to be treated as an expenditure for t