Commissioner of Income Tax vs. P. MADHESWARAN

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TCA/46/2023HC Madras15 October 2024Bench: Honourable Mr Justice R. SURESH KUMAR3 pages
AI SummaryDismissed

What did the High Court hold?

The High Court dismissed the appeal filed by the Revenue. The dismissal was based on the submission by the Revenue that the matter was covered under the Low Tax Effect as per Circular No. 9/2024 dated 17.09.2024. Consequently, the substantial question of law framed in the appeal was kept open to be decided at a later point in time. No decision was made on the merits of whether the Tribunal was right in allowing the carry forward of depreciation loss. The operative direction was to dismiss the appeal on the ground of low tax effect, with no order as to costs.

What were the facts?

The Revenue, Commissioner of Income Tax, Circle – 1, Namakkal, Salem, has filed an appeal under Section 260-A of the Income Tax Act, 1961, against an order passed by the Income Tax Appellate Tribunal (ITAT), Chennai Bench, dated 26.08.2022. The ITAT's order was in relation to ITA No. 3365/CHNY/2019. The appeal was admitted by the High Court on 06.02.2023. The dispute pertains to the assessment year(s) not explicitly stated in the provided text. The core of the dispute involves the allowance of carry forward of depreciation loss by the Tribunal, which the Revenue contends was not disclosed by the assessee in the Return of Income nor certified by the Chartered Accountant in Form 3CD.

What were the issues?

The High Court was asked to decide the following substantial question of law: 1. Whether on the facts and circumstances of the case, the Tribunal was right in allowing the carry forward of depreciation loss that has not been disclosed by the assessee in the Return of Income nor certified by the Chartered Accountant in Form 3CD? (Question of law and fact, concerning provisions related to disclosure and certification of losses for carry forward). Contentions: Assessee: No arguments are recorded for the assessee in the provided judgment. Revenue: The Revenue submitted that the matter is covered under the Low Tax Effect as per Circular No. 9/2024 dated 17.09.2024. The Revenue's argument is that due to this circular, the appeal should be dismissed without deciding the substantial question of law.

Which sections of the Income-tax Act were involved?

Section 260-A

AI-generated summary — verify with the full judgment below

T.C.A.No.46 of 2023 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 15.10.2024 CORAM : THE HONOURABLE MR.JUSTICE R. SURESH KUMAR AND THE HONOURABLE MR.JUSTICE C. SARAVANAN T.C.A.No.46 of 2023 Commissioner of Income Tax Circle – 1, Namakkal Salem. .. Appellant Vs. P.Madheswaran .. Respondent Prayer: Appeal filed under Section 260-A of the Income Tax Act, 1961, against the order of Income Tax Appellate Tribunal “C” Bench,

Chennai

dated

26.08.2022

passed

in I.T.A.No.3365/CHNY/2019. For the Appellant : Mr.Karthik Ranganathan Senior Standing Counsel For the Respondent : Mr.G.Baskar JUDGMENT (Order of the Court was made by R.SURESH KUMAR, J.) The present tax case appeal was admitted on 06.02.2023 by this Court on the following substantial question of law:- "1. Whether on the facts and circumstances of the case, the Tribunal was right in allowing the carry forward of depreciation loss that has not been disclosed by the assessee in the Return of Income nor certified by the Chartered Accountant in Form 3CD?" Page 1 of 3 https://www.mhc.tn.gov.in/judis T.C.A.No.46 of 2023 2. It is submitted by the learned Senior Standing Counsel appearing for the appellant Revenue that this matter is covered under the Low Tax Effect as per the recent Circular dated 17.09.2024, in Circular No.9/2024. 3. Hence, this appeal stands dismissed, as covered under the low tax effect and the substantial question of law arising in this appeal is kept open to be decided at the later point of time. There shall be no order as to costs. (R.S.K., J.) (C.S.N, J) 15.10.2024 Neutral Citation:Yes/No drm Page 2 of 3 https://www.mhc.tn.gov.in/judis T.C.A.No.46 of 2023 R. SURESH KUMAR, J. AND C. SARAVANAN

, J.

(drm) T.C.A.No.46 of 2023 15.10.2024 Page 3 of 3 https://www.mhc.tn.gov.in/judis

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