Principal Commissioner of Income Tax vs. M/s. Chiranjeevi Wind Energy Ltd.,

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TCA/534/2023HC 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 is covered under the 'Low Tax Effect' as per the recent Circular No. 9/2024 dated 17.09.2024. Consequently, the substantial questions of law arising in this appeal were kept open to be decided at a later point in time. No order was made as to costs. The specific findings of the ITAT on the applicability of the Kelvinator of India Ltd. judgment or the merits of the reopening under Sections 147 & 148 were not adjudicated upon by the High Court due to the dismissal on procedural grounds.

What were the facts?

The Revenue, represented by the Principal Commissioner of Income Tax, Corporate Circle – 1, Coimbatore, filed an appeal before the High Court of Judicature at Madras against an order passed by the Income Tax Appellate Tribunal (ITAT), “B” Bench, Chennai, dated 27.06.2023, in I.T.A.No.1879/CHNY/2018. The appeal was admitted on substantial questions of law. The assessee is M/s. Chiranjeevi Wind Energy Ltd. The appeal concerns the assessment year(s) not explicitly stated in the provided text. The procedural history involves the ITAT's order which is under challenge.

What were the issues?

The High Court was to decide the following substantial questions of law: 1. Whether the ITAT was right in law in holding that the judgment of CIT vs. Kelvinator of India Ltd., (320 ITR 561) is applicable to the case. 2. Whether the ITAT and the CIT(A) erred in appreciating that the issue sought to be addressed by reopening under Sections 147 & 148 was the invalid revising of the Return of Income on 01.03.2013 under the garb of circular 1/2003 of MCA, and not the disallowance of the claim of advance written off intended for purchases of land. Contentions: Assessee: The judgment of CIT vs. Kelvinator of India Ltd. (320 ITR 561) was applicable. Revenue: The ITAT and CIT(A) erred in appreciating the issue concerning the reopening under Sections 147 & 148, which was about the invalid revision of the ROI under the garb of MCA circular, not the disallowance of advance written off for land purchases.

Which sections of the Income-tax Act were involved?

Section 260-A,Section 147,Section 148

AI-generated summary — verify with the full judgment below

T.C.A.No.534 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.534 of 2023 Principal Commissioner of Income Tax Corporate Circle – 1, Coimbatore. .. Appellant Vs. M/s.Chiranjeevi Wind Energy Ltd. 45/3A, Arts College Road Opp. To Bala Lodge Coimbatore – 641 018 PAN: AAACC876 1H .. Respondent Prayer: Appeal filed under Section 260-A of the Income Tax Act, 1961, against the order of Income Tax Appellate Tribunal “B” Bench,

Chennai

dated

27.06.2023

passed

in I.T.A.No.1879/CHNY/2018. For the Appellant : Mr.Karthik Ranganathan Senior Standing Counsel For the Respondent : Mr.A.S.Sriraman JUDGMENT (Order of the Court was made by R.SURESH KUMAR, J.) The present tax case appeal was admitted on 02.11.2023 by this Court on the following substantial questions of law:- Page 1 of 4 https://www.mhc.tn.gov.in/judis T.C.A.No.534 of 2023 "1. Whether on the facts and circumstances of the case, the learned ITAT is right in law in holding that the judgment of CIT vs. Kelvinator of India Ltd., (320 ITR 561) is applicable to this case at hand? 2. Whether on the facts and circumstances of the case and in law, the learned ITAT and learned CIT (A), has erred in appreciating that, the issue sought to have been addressed by reopening u/s 147 & 148 was the invalid revising of the ROI on 01.03.2013 under the garb of circular 1/2003 of MCA and not the disallowance of the claim of advance written off intended for purchases of land?" 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.534 of 2023 3. Hence, this appeal stands dismissed, as covered under the low tax effect and the substantial questions of law arising 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.534 of 2023 R. SURESH KUMAR, J. AND C. SARAVANAN

, J.

(drm) T.C.A.No.534 of 2023 15.10.2024 Page 4 of 4 https://www.mhc.tn.gov.in/judis

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