COMMISSIONER OF INCOME TAX vs. M/S HANDLOOM HERITAGE LIMITED

TCA/379/2015HC Madras02 September 2024Bench: Honourable Mr Justice R. SURESH KUMAR3 pages

AI SummaryDismissed

What did the High Court hold?

The High Court, acknowledging the submission made by the Revenue's counsel regarding the low tax effect, decided to dismiss the Tax Case Appeals. The Court explicitly stated that the substantial questions of law raised in these appeals would be kept open for adjudication at an appropriate stage. This means the Tribunal's order remains undisturbed on merits, and the appeals before the High Court were disposed of on a procedural ground (low tax effect) rather than a substantive legal determination. No costs were awarded. The operative direction is the dismissal of the appeals.

What were the facts?

The Revenue, Commissioner of Income Tax, Central Circle II, Chennai, filed four Tax Case Appeals (TCAs) under Section 260A of the Income Tax Act, 1961, against M/s. Handloom Heritage Limited. These appeals challenged a common order dated 18.05.2011 passed by the Income Tax Appellate Tribunal ('B' Bench, Chennai). The appeals pertained to Assessment Years 2000-2001 and 2003-2004. The procedural history involves the Revenue filing these appeals before the High Court of Judicature at Madras after the Tribunal's decision. The appeals were listed for hearing on 02.09.2024.

What were the issues?

The primary issue before the High Court was whether to adjudicate the substantial questions of law raised in the Revenue's appeals. The Revenue, through its learned Senior Standing Counsel, submitted that the tax effect in these cases was below the monetary limit prescribed for filing appeals. Consequently, the Revenue requested that the appeals be disposed of without a decision on the merits, while keeping the substantial questions of law open for future consideration. The Respondent/Assessee's contentions are not recorded in the judgment.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

Tax Case Appeal Nos.379, 382, 385 & 388 of 2015 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 02.09.2024 CORAM THE HON'BLE Mr. JUSTICE R. SURESH KUMAR AND THE HON'BLE Mr. JUSTICE C. SARAVANAN Tax Case Appeal Nos.379, 382, 385 and 388 of 2015 AND M.P.Nos.1, 1, 1 and 1 of 2015 Commissioner of Income Tax Central Circle II Chennai 600 034 .. Appellant in all TCAs Vs. M/s.Handloom Heritage Limited No.37, Rajamannar Street T.Nagar, Chennai 600 017 PAN : AAACH0890A .. Respondent in all TCAs Tax Case Appeals filed under Section 260A of the Income Tax Act, 1961 against the common order dated 18.05.2011 passed by the Income Tax Appellate Tribunal,'B' Bench, Chennai, in I.T.A.Nos.1762/Mds/2010, 1765/Mds/2010, 1793/Mds/2010 and 1796/Mds/2010 for the AY 2000-2001, 2003-2004, 2000-2001, 2003-2004, respectively. For Appellant in all TCAs : Mr.Karthik Ranganathan Senior Standing Counsel For Respondent : Mr.K.Ravi 1/3 https://www.mhc.tn.gov.in/judis Tax Case Appeal Nos.379, 382, 385 & 388 of 2015 in all TCAs

C O M M O N J U D G M E N T (Delivered by R. SURESH KUMAR, J.) It is brought to our notice by the learned Senior Standing Counsel for the appellant/Revenue that in the instant cases, the tax effect is said to be less than the monetary limit imposed and therefore, the appeals filed by the Revenue can be disposed of, keeping the substantial questions of law raised in these appeals open for adjudication at a later point of time, 2. Recording the said submission, these Tax Case Appeals are 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.] 02.09.2024

gya Internet : Yes

Index : Yes / No 2/3 https://www.mhc.tn.gov.in/judis Tax Case Appeal Nos.379, 382, 385 & 388 of 2015 R. SURESH KUMAR, J. AND C. SARAVANAN, J. gya Tax Case Appeal Nos.379, 382, 385 & 388 of 2015 02.09.2024

3/3 https://www.mhc.tn.gov.in/judis

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