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

TCA/387/2015HC 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 made by the Revenue's counsel that the tax effect in the instant case was less than the monetary limit prescribed for filing appeals. Consequently, the Court decided to dispose of the appeal for low tax effect, keeping the substantial question of law open for adjudication at an appropriate stage. No decision was made on the merits of the substantial question of law regarding the deletion of additions by the ITAT. No costs were awarded.

What were the facts?

The Revenue, Commissioner of Income Tax IV, Central Circle, Chennai, filed a Tax Case Appeal under Section 260A of the Income Tax Act, 1961, against an order of the Income Tax Appellate Tribunal (ITAT), Madras 'B' Bench, dated May 18, 2011. The appeal challenges the ITAT's deletion of additions made by the Assessing Officer concerning fixed deposit receipts and their corresponding interest. These receipts were found in the names of various weavers but were in the possession of the assessee company, M/s. Handloom Heritage Limited, during a search action. The assessment years are not explicitly stated in the provided text.

What were the issues?

1. Whether, in the facts and circumstances of the case, the Appellate Tribunal was right in deleting the additions made on account of fixed deposit receipts and corresponding interest thereon held in the names of various weavers and which were found with the assessee company during the course of search action? (Question of law) Assessee's Contentions: The judgment does not record any specific contentions made by the assessee. The appeal was filed by the Revenue. Revenue's Contentions: The Revenue argued that the appeal should be disposed of due to a low tax effect, without adjudicating the substantial question of law on its merits. The Revenue submitted that the tax effect was less than the monetary limit imposed for filing appeals.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

T.C.A.No.387 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.387 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.1795/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.387 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 additions made on account of fixed deposit receipts and corresponding interest thereon held in the names of various weavers and which were found with the assessee company during the course of search action?" 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. Consequently, connected miscellaneous petition is closed. (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.387 of 2015 To The Income Tax Appellate Tribunal 'B' Bench, Chennai. https://www.mhc.tn.gov.in/judis T.C.A.No.387 of 2015 R.SURESH KUMAR, J. AND C.SARAVANAN, J. KST T.C.A.No.387 of 2015 01.10.2024 https://www.mhc.tn.gov.in/judis

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