THE COMMISSIONER OF INCOME T vs. M/S STERLING AGRO PRODUCTS

T.C.A.Nos.364 and 365 of 2015 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED 17.08.2022 CORAM THE HON'BLE Mr. JUSTICE R. MAHADEVAN AND THE HON'BLE Mr. JUSTICE MOHAMMED SHAFFIQ Tax Case Appeal Nos.364 and 365 of 2015 AND M.P.Nos.1 and 1 of 2015 The Commissioner of Income Tax Chennai

.. Appellant in both T.C.As Vs. M/s.Sterling Agro Products Processing Pvt. Ltd. Sterling Tower, 327, Anna Salai Teynampet Chennai 600 018 .. Respondent in both T.C.As Tax Case Appeals filed under Section 260A of the Income Tax Act, 1961 against the common order dated 26.08.2011 passed by the Income Tax Appellate Tribunal, 'B' Bench, Chennai, in respective I.T.A.Nos.620/Mds/2011 and 600/Mds/2011. For Appellant : Mr.J.Narayanasamy in both T.C.As Standing Counsel

1/4 https://www.mhc.tn.gov.in/judis T.C.A.Nos.364 and 365 of 2015 C O M M O N J U D G M E N T (Judgment was delivered by R. MAHADEVAN, J.) These tax case appeals have been filed by the appellant/Revenue, calling in question the correctness of the common order dated 26.08.2011 passed by the Income Tax Appellate Tribunal, 'B' Bench, Chennai, in respective I.T.A.Nos.620/Mds/2011 and 600/Mds/2011, for the respective assessment years 2006-07 and 2007-08. 2. By order dated 22.07.2015, this Court admitted the aforesaid tax case appeals on the following substantial question of law : “(i) Whether on the facts and circumstances of the case, the Tribunal was right in holding that the disallowance of advance given to the farmers written off by the assessee is allowable especially when no evidence were produced to show that debts had occurred during the earlier assessment year for writing off of such sum advanced? (ii) Whether on the facts and in the circumstances of the case, the Tribunal was right in holding that the amounts advanced to farmer were to be written off especially when the same had been shown in the accounts as selling and distribution expenses and no material was produced by the assessee to substantiate the said claim?” 2/4 https://www.mhc.tn.gov.in/judis T.C.A.Nos.364 and 365 of 2015 3. When these matters were taken up for consideration, the learned counsel for the appellant/Revenue brought to the notice of this court the Circular No.17/2019 dated 08.08.2019, issued by the Central Board Direct Taxes, wherein, it is stipulated that appeals shall not be filed/pursued by the Department before the High Court in cases where the tax effect does not exceed Rs.1,00,00,000/- (Rupees One Crore). It is also submitted that the tax effect in these appeals are less than the threshold limit. 4. In the light of the aforesaid submissions made by the learned counsel for the appellant/Revenue, the present appeals, wherein, the tax effect is said to be less than the monetary limit imposed, are dismissed as withdrawn, keeping open the substantial questions of law for determination in appropriate cases. No costs. Consequently, connected miscellaneous petitions are closed. [R.M.D,J.] [M.S.Q, J.] 17.08.2022

Index : Yes / No gya 3/4 https://www.mhc.tn.gov.in/judis T.C.A.Nos.364 and 365 of 2015 R. MAHADEVAN, J. AND MOHAMMED SHAFFIQ, J. gya To 1.The Commissioner of Income Tax Chennai 2.The Assistant Commissioner of Income Tax Company Circle-VI(4) Chennai 3.The Commissioner of Income Tax (Appeals)-VI Chennai 4.The Income Tax Appellate Tribunal 'B' Bench, Chennai T.C.A.Nos.364 and 365 of 2015 17.08.2022

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