PRINCIPAL COMMISSIONER OF INCOME TAX 3, vs. M/S SHRI HARI KRISHNA PAPERS PVT LTD,

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TCA/497/2019HC Madras15 October 2024Bench: Honourable Mr Justice R. SURESH KUMAR4 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 ground that the matter was covered by the Low Tax Effect as per Circular No. 9/2024 dated September 17, 2024. Consequently, the substantial questions of law raised in the appeal were kept open to be decided at a later point in time. No specific findings were given on the merits of the substantial questions of law, nor was the ITAT's order on the merits disturbed. The operative direction was to dismiss the appeal, with no order as to costs.

What were the facts?

This appeal by the Principal Commissioner of Income Tax (Revenue) challenges an order of the Income Tax Appellate Tribunal (ITAT), Madras Bench, dated February 15, 2016. The assessee is M/s. Hari Krishna Papers Pvt. Ltd. The assessment year in question is 2010-11. The appeal is filed under Section 260-A of the Income Tax Act, 1961. The Revenue's appeal concerns the ITAT's decision to quash a revision order passed under Section 263 of the Act. The core dispute revolves around whether a new industrial undertaking came into existence and the applicability of certain provisions of Section 80IA of the Income Tax Act to a turbine unit.

What were the issues?

The Tribunal had to decide the following substantial questions of law: 1. Whether the Appellate Tribunal was justified in quashing the revision order passed under Section 263 of the Income Tax Act for the assessment year 2010-11? 2. Whether the Tribunal was justified in law in holding that a new industrial undertaking has come into existence within the meaning of sub-Section (2) of Section 80IA of the Income Tax Act? 3. Whether the Tribunal was legally correct in holding that the provisions of Section 80IA(3)(i) are not applicable to the turbine unit? 4. Whether the Tribunal was justified in law by deciding the issue by overlooking the finding of the CIT(A) that the restrictive provisions under Section 80IA(3)(ii) are also applicable? The Revenue contended that the matter is covered under the Low Tax Effect as per Circular No. 9/2024 dated September 17, 2024. No specific arguments for the assessee on the merits of the substantial questions of law were recorded in the judgment.

Which sections of the Income-tax Act were involved?

Section 260-A,Section 263,Section 80IA

AI-generated summary — verify with the full judgment below

T.C.A.No.497 of 2019 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.497 of 2019 Principal Commissioner of Income Tax No.63, Race Course Road Coimbatore. .. Appellant Vs. M/s. Hari Krishna Papers Pvt. Ltd. No.54/2, Jothi Nagar Venkatesa Mills Post Udumalpet 642 128. PAN: AAD CS 0649 B .. Respondent Prayer: Appeal filed under Section 260-A of the Income Tax Act, 1961, against the order of Income Tax Appellate Tribunal Madras Bench,

Chennai

dated

15.02.2016

passed

in I.T.A.No.1190/Mds/2016. For the Appellant : Mr.Karthik Ranganathan Senior Standing Counsel For the Respondent : Mr.A.S.Sivaraman JUDGMENT (Order of the Court was made by R.SURESH KUMAR, J.) The substantial questions of law raised in this tax case appeal are as follows:- "1. Whether on the facts and circumstances of Page 1 of 4 https://www.mhc.tn.gov.in/judis T.C.A.No.497 of 2019 the case, the Appellate Tribunal is justified in quashing the Revision order passed under Section 263 of the Income Tax Act for the assessment year 2010-11? 2. Whether on the facts and circumstances of the case, the Tribunal is justified in law in holding that a new industrial undertaking has come into existence within the meaning of sub Section (2) of Section 80IA of the Income Tax Act? 3. Whether on the facts and circumstances of the case, the Tribunal is legally correct by holding that the provisions of Section 80 IA(3)(i) is not applicable to the turbine unit? 4. Whether on the facts and circumstances of the case, the Tribunal is justified in law by deciding the issue by over viewing the finding of the CIT(A) that the restrictive provisions under Section 80 IA(3)(ii) is also applicable?" 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. Page 2 of 4 https://www.mhc.tn.gov.in/judis T.C.A.No.497 of 2019 3. Hence, this appeal stands dismissed, as covered under the low tax effect and the substantial questions of law raised in this appeal are 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 3 of 4 https://www.mhc.tn.gov.in/judis T.C.A.No.497 of 2019 R. SURESH KUMAR, J. AND C. SARAVANAN

, J.

(drm) T.C.A.No.497 of 2019 15.10.2024 Page 4 of 4 https://www.mhc.tn.gov.in/judis

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