PRINCIPAL COMMISSIONER OF vs. DOLLAR APPARELS

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TCA/364/2017HC Madras23 October 2024Bench: Honourable Mr Justice R. SURESH KUMAR4 pages
AI SummaryDismissed

What did the High Court hold?

The High Court dismissed the Tax Case Appeal filed by the Revenue. The dismissal was based on the submission made by the Revenue's learned Standing Counsel regarding the low tax effect, as per CBDT's Circular No.9 of 2024. The Court explicitly stated that the substantial questions of law raised in the appeal were being kept open for adjudication at an appropriate stage. Therefore, the High Court did not render a decision on the merits of the substantial questions of law concerning the ITAT's order to remit the case for considering the Section 80IA deduction. The operative direction was to dismiss the appeal, with no costs.

What were the facts?

The Revenue, represented by the Principal Commissioner of Income Tax, filed a Tax Case Appeal before the High Court of Judicature at Madras, challenging an order passed by the Income Tax Appellate Tribunal (ITAT), Chennai. The ITAT's order, dated 23.11.2016 in ITA.No.104/Mds/2016, concerned the assessment year(s) not explicitly stated but related to a deduction under Section 80IA of the Income Tax Act for income from a windmill division. The ITAT had remitted the case back to the Assessing Officer to consider this deduction, subject to Section 80AB. The Revenue's appeal was filed under Section 260A of the Income Tax Act. The High Court was informed by the Revenue's counsel that the tax effect in this appeal was below the monetary limit prescribed by CBDT's Circular No.9 of 2024, dated 17.09.2024.

What were the issues?

The High Court was asked to decide two substantial questions of law: 1. Whether, on the facts and in the circumstances of the case, the ITAT was justified in law in remitting the case to the Assessing Officer to consider the deduction under Section 80IA of the Income Tax Act in respect of income from the windmill division, subject to Section 80AB, when the same Tribunal, in the assessee's own case for a subsequent assessment year (2013-14), had allowed a similar issue in favour of the Revenue? 2. Whether, on the facts and in the circumstances of the case, the ITAT was justified in law in remitting the case to the Assessing Officer to consider the deduction under Section 80IA of the Act in respect of income from the windmill division, subject to Section 80AB, when the revised computation filed by the assessee indicated that the business income was 'nil', thereby raising a question on the eligibility for the deduction under Section 80IA? The Revenue contended that the ITAT's order was erroneous, particularly in light of its own prior decision for a subsequent year. The Revenue also highlighted that the assessee's revised computation showed 'nil' business income, which would preclude any deduction under Section 80IA. The judgment does not record specific arguments from the assessee.

Which sections of the Income-tax Act were involved?

Section 260A,Section 80IA,Section 80AB

AI-generated summary — verify with the full judgment below

T.C.A.No.364 of 2017 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 23.10.2024 CORAM THE HON'BLE MR.JUSTICE R.SURESH KUMAR AND THE HON'BLE MR.JUSTICE C.SARAVANAN Tax Case Appeal No.364 of 2017 Principal Commissioner of Income Tax No.63, Race Course Road, Coimbatore. .... Appellant Vs. Dollar Apparels No.13 sixty Feet Road Kumaranandapuram Tirupur . PAN AAB FD 8592 K. .... Respondent ----- Tax Case Appeal filed under Section 260A of the Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal, 'A' Bench Chennai, dated 23.11.2016 in ITA.No.104/Mds/2016. For Appellant : Mr.Karthik Ranganathan Senior Standing Counsel J U D G M E N T (Delivered by R.SURESH KUMAR, J.) This Tax Case Appeal has been filed by the Revenue calling in question the correctness of the order passed by the Income Tax Appellate Tribunal, Chennai by raising the following substantial questions of law: 1 of 4 https://www.mhc.tn.gov.in/judis T.C.A.No.364 of 2017 1. Whether on the facts and in the circumstances of the case, the appellate Tribunal is justified in law in remitting the case to file of the assessing officer to consider the deduction u/s.80IA of the Income Tax Act in respect of income from windmill division subject to the provisions of Section 80AB, when the very same Tribunal vide order in ITA No.2040/Mds/2016 dated 21.10.2016 in assessee's own case on a similar issue for the subsequent assessment year 2013-14 allowed the appeal in favour of the Revenue? 2. Whether on the facts and circumstances of the case, the Tribunal is justified in law in remitting the case to file of the AO to consider the deduction u/s.80IA of the Act in respect of income from windmill division subject to the provisions of the Section 80AB, when it is clear from the revised computation filed by the assessee that the business income of the assessee is 'nil' and hence deduction u/s.80IA of the Act arises?" 2. It is brought to our notice by the learned Standing Counsel for the appellant Revenue that in the instant case, as per the CBDT's Circular No.9 of 2024 dated 17.09.2024 the tax effect is said to be less than the monetary limit imposed and therefore, the appeal can be disposed of, keeping the substantial questions of law raised in this appeal open for adjudication at a later point of 2 of 4 https://www.mhc.tn.gov.in/judis T.C.A.No.364 of 2017 time. 3. Recording the aforesaid submission made by the learned Standing Counsel for the appellant Revenue, this Tax Case Appeal is dismissed for low tax effect, keeping open the substantial questions of law for adjudication at appropriate stage. No costs. (R.S.K.,J.) (C.S.N.,J.) 23.10.2024 NCS : Yes/No

KST To The Income Tax Appellate Tribunal 'A' Bench, Chennai. 3 of 4 https://www.mhc.tn.gov.in/judis T.C.A.No.364 of 2017 R.SURESH KUMAR, J. AND C.SARAVANAN, J. KST T.C.A.No.364 of 2017 23.10.2024 4 of 4 https://www.mhc.tn.gov.in/judis

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