PRINCIPAL COMMISSIONER OF INCOME TAX 1 vs. M/S.SHARADHA TERRY PRODUCTS LTD

PDF · subscribers
TCA/174/2021HC Madras15 October 2024Bench: Honourable Mr Justice R. SURESH KUMAR4 pages
AI SummaryDismissed

What did the High Court hold?

The High Court noted the submission by the learned Senior Standing Counsel for the appellant Revenue that the matters were covered under the Low Tax Effect as per Circular No.9/2024 dated 17.09.2024. Consequently, the appeals were dismissed on this ground. The Court explicitly stated that the substantial questions of law arising in these appeals are kept open to be decided at a later point of time. No order as to costs was made. The judgment does not provide any findings or reasoning on the merits of the substantial questions of law themselves.

What were the facts?

The appeals were filed by the Principal Commissioner of Income Tax, Coimbatore (Revenue) against the orders of the Income Tax Appellate Tribunal (ITAT), Madras 'D' Bench. The ITAT's orders were dated 05.02.2020 and were passed in I.T.A.No.592/CHNY/2018 and I.T.A.No.1906/CHNY/2018. The respondent assessee is M/s. Sharadha Terry Products Ltd. The appeals were admitted by the High Court on 15.03.2021. The Revenue submitted that these matters are covered under the Low Tax Effect as per Circular No.9/2024 dated 17.09.2024.

What were the issues?

1. Whether on the facts and circumstances of the case, the Appellate Tribunal is justified in treating the reopening of assessment as bad in law, when Section 147 of the Income Tax Act clearly provides that if the Assessing Officer has reason to believe that any income chargeable to tax has escaped assessment, the Assessing Officer can assess or re-assess the escaped income? 2. Whether on the facts and circumstances of the case and in law, the ITAT is justified in confirming the order of CIT(Appeals), when the assessee failed to reduce the miscellaneous receipts for the purpose of computation of deduction u/s 10B of the IT Act? Assessee's arguments: Not recorded in the judgment. Revenue's arguments: The Revenue submitted that these matters are covered under the Low Tax Effect as per Circular No.9/2024 dated 17.09.2024.

Which sections of the Income-tax Act were involved?

Section 147,Section 10B,Section 260-A

AI-generated summary — verify with the full judgment below

T.C.A.Nos.174 & 175 of 2021 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 15.10.2024 CORAM : THE HONOURABLE MR.JUSTICE R. SURESH KUMAR AND THE HONOURABLE MR.JUSTICE C. SARAVANAN T.C.A.Nos.174 & 175 of 2021 Principal Commissioner of Income Tax 1 No.63, Race Course Road Appellant Coimbatore. .. in both T.C.As Vs. M/s. Sharadha Terry Products Ltd. No.8, Badrakaliamman Koil Road Nellithurai P.O., Mettupalayam Coimbatore – 641 305 Respondent PAN: AAD CS 0657 H .. in both T.C.As Prayer in T.C.A.No.174 of 2021: Appeal filed under Section 260-A of the Income Tax Act, 1961, against the order of Income Tax Appellate Tribunal Madras “D” Bench dated 05.02.2020 passed in I.T.A.No.592/CHNY/2018; and Prayer in T.C.A.No.175 of 2021: Appeal filed under Section 260-A of the Income Tax Act, 1961, against the order of Income Tax Appellate Tribunal Madras “D” Bench dated 05.02.2020 passed in I.T.A.No.1906/CHNY/2018. For the Appellant : Mr.Karthik Ranganathan in both T.C.As Senior Standing Counsel For the Respondent in both T.C.As : Mr.A.S.Sriraman Page 1 of 4 https://www.mhc.tn.gov.in/judis T.C.A.Nos.174 & 175 of 2021 COMMON JUDGMENT (Order of the Court was made by R.SURESH KUMAR, J.) The present tax case appeals were admitted on 15.03.2021 by this Court on the following substantial questions of law:- "1. Whether on the facts and circumstances of the case, the Appellate Tribunal is justified in treating the reopening of assessment is bad in law, when Section 147 of the Income Tax Act clearly provides that if the Assessing Officer has reason to believe that any income chargeable to tax has escaped assessment, the Assessing Officer can assess or re-assess the escaped income? 2. Whether on the facts and circumstances of the case and in law, the ITAT is justified in confirming the order of CIT(Appeals), when the assessee failed to reduce the miscellaneous receipts for the purpose of computation of deduction u/s 10B of the IT Act?" 2. It is submitted by the learned Senior Standing Counsel appearing for the appellant Revenue that these matters are covered under the Low Tax Effect as per the recent Circular dated 17.09.2024, in Circular No.9/2024. Page 2 of 4 https://www.mhc.tn.gov.in/judis T.C.A.Nos.174 & 175 of 2021 3. Hence, these appeals stand dismissed, as covered under the low tax effect and the substantial questions of law arising in these appeals are kept open to be decided at the later point of time. There shall be no order as to costs. (R.S.K., J.) (C.S.N, J) 15.10.2024 Neutral Citation:Yes/No drm Page 3 of 4 https://www.mhc.tn.gov.in/judis T.C.A.Nos.174 & 175 of 2021 R. SURESH KUMAR, J. AND C. SARAVANAN

, J.

(drm) T.C.A.Nos.174 & 175 of 2021 15.10.2024 Page 4 of 4 https://www.mhc.tn.gov.in/judis

More judgments on Section 147

All 49,210 judgments and leading authorities on Section 147 →

Recent GST High Court judgments

Search GST case law →