THE COMMISSIONER OF INCOME TAX vs. M/S SHRIRAM RETAIL HODLINGS

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TCA/576/2015HC 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. The Court made no order as to costs. The finding of the ITAT on the merits of the disallowance under Section 14A read with Rule 8D(i) was not adjudicated upon by the High Court due to the dismissal on the ground of low tax effect. The operative direction was to dismiss the appeal.

What were the facts?

The Revenue, Commissioner of Income Tax, Chennai, filed an appeal under Section 260-A of the Income Tax Act, 1961, against an order dated 10.04.2014 passed by the Income Tax Appellate Tribunal (ITAT), Madras 'A' Bench, in I.T.A.No.1477/Mds/2013. The appeal was admitted by the High Court on 23.07.2015. The assessee is M/s.Shriram Retail Holdings Pvt. Ltd. The dispute pertains to a disallowance made by the Assessing Officer regarding direct expenditure under Section 14A read with Rule 8D(i). The specific amount in dispute is not recorded in the judgment. The procedural history involves the order of the Assessing Officer, the appeal to the ITAT, and the present appeal to the High Court.

What were the issues?

1. Whether on the facts and circumstances of the case, the Appellate Tribunal was right in holding that the Assessing Officer has wrongly made disallowance regarding direct expenditure made under Section 14A read with Rule 8D(i)? Assessee's Contentions: The judgment does not record any specific contentions made by the assessee before the High Court. However, the substantial question of law framed implies that the assessee would have argued that the disallowance made by the Assessing Officer was incorrect and that the ITAT's finding in their favour was justified. Revenue's Contentions: 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 did not argue the merits of the substantial question of law.

Which sections of the Income-tax Act were involved?

Section 260-A,Section 14A

AI-generated summary — verify with the full judgment below

T.C.A.No.576 of 2015 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.576 of 2015 The Commissioner of Income Tax Chennai. .. Appellant Vs. M/s.Shriram Retail Holdings Pvt. Ltd. 4, Lady Desika Road Mylapore, Chennai – 600 004. .. Respondent Prayer: Appeal filed under Section 260-A of the Income Tax Act, 1961, against the order of Income Tax Appellate Tribunal, Madras “A”

Bench,

Chennai

dated

10.04.2014

passed

in I.T.A.No.1477/Mds/2013. For the Appellant : Mr.J.Narayanaswamy Senior Standing Counsel For the Respondent : Ms.Vandhana Vyas for Mr.R.Sivaraman JUDGMENT (Order of the Court was made by R.SURESH KUMAR, J.) The present tax case appeal was admitted on 23.07.2015 by this Court on the following substantial question of law:- Page 1 of 3 https://www.mhc.tn.gov.in/judis T.C.A.No.576 of 2015 "1. Whether on the facts and circumstances of the case, the Appellate Tribunal was right in holding that the Assessing Officer has wrongly made disallowance regarding direct expenditure made under Section 14A read with Rule 8D(i)" 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.576 of 2015 R. SURESH KUMAR, J. AND C. SARAVANAN

, J.

(drm) T.C.A.No.576 of 2015 15.10.2024 Page 3 of 3 https://www.mhc.tn.gov.in/judis

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