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

TCA/381/2015HC Madras01 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 by the Revenue's learned Standing Counsel that the tax effect in the instant case was less than the monetary limit imposed. Consequently, the Court decided to dispose of the appeal without adjudicating the substantial question of law. The substantial question of law was kept open for adjudication at an appropriate stage. No costs were awarded.

What were the facts?

The Revenue, Commissioner of Income Tax IV, Central Circle, Chennai, filed a Tax Case Appeal against an order of the Income Tax Appellate Tribunal (ITAT), Madras 'B' Bench, Chennai, dated May 18, 2011, in ITA No.1764/Mds/2010. The appeal was admitted on a substantial question of law concerning the deletion of a disallowance of 20% to 25% made by the Commissioner of Income Tax (Appeals) for inflated expenses by the assessee, M/s. Handloom Heritage Limited. The tax effect in this case was stated to be less than the monetary limit imposed by the Revenue.

What were the issues?

1. Whether, in the facts and circumstances of the case, the Appellate Tribunal was right in deleting the disallowance of 20% to 25% made by the Commissioner of Income Tax (Appeals) as inflating expenses made by the assessee company? (Question of law) The Revenue contended that the appeal could be disposed of due to a low tax effect, keeping the substantial question of law open for future adjudication. The judgment does not record any specific arguments from the assessee regarding the merits of the disallowance or the Tribunal's order.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

T.C.A.No.381 of 2015 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 01.10.2024 CORAM THE HON'BLE MR.JUSTICE R.SURESH KUMAR AND THE HON'BLE MR.JUSTICE C.SARAVANAN Tax Case Appeal No.381 of 2015 and M.P.No.1 of 2015 The Commissioner of Income Tax IV Central Circle, Chennai 600 034. ... Appellant Vs. M/s.Handloom Heritage Limited No.37, Rajamannar Street T.Nagar, Chennai-17. ... Respondent ----- Tax Case Appeal filed under Section 260A of the Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal, Madras 'B' Bench, Chennai, dated 18.05.2011 made in ITA No.1764/Mds/2010. For Appellant : Mr.Karthik Ranganathan Senior Standing Counsel For Respondent : Mr.K.Ravi 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, 'B' https://www.mhc.tn.gov.in/judis T.C.A.No.381 of 2015 Bench, Chennai and the appeal was admitted on the following substantial question of law: "Whether in the facts and circumstances of the case, the Appellate Tribunal was right in deleting the disallowance of 20 to 25% made by the Commissioner of Income Tax (Appeals) as inflating expenses made by the assessee company?" 2. It is brought to our notice by the learned Standing Counsel for the appellant Revenue that in the instant case, the tax effect is said to be less than the monetary limit imposed and therefore, the appeal filed by the Revenue can be disposed of, keeping the substantial question of law raised in this appeal open for adjudication at a later point of time. 3. Recording the said submission, 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.) 01.10.2024 NCS : Yes/No Index : Yes/No KST https://www.mhc.tn.gov.in/judis T.C.A.No.381 of 2015 To The Income Tax Appellate Tribunal 'B' Bench, Chennai. https://www.mhc.tn.gov.in/judis T.C.A.No.381 of 2015 R.SURESH KUMAR, J. AND C.SARAVANAN, J. KST T.C.A.No.381 of 2015 01.10.2024 https://www.mhc.tn.gov.in/judis

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