PRINCIPAL COMMISSIONER OF vs. M/S.TALENT STEELS INDUSTRIES

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TCA/625/2018HC Madras15 October 2024Bench: Honourable Mr Justice R. SURESH KUMAR4 pages
AI SummaryDismissed

What did the High Court hold?

The High Court dismissed the appeal on the ground that the matter is covered under the Low Tax Effect as per Circular No.9/2024 dated 17.09.2024. The Court explicitly stated that the substantial questions of law arising in this appeal are kept open to be decided at a later point in time. Therefore, no finding was rendered on the merits of the substantial questions of law. The operative direction was to dismiss the appeal, with no order as to costs. The judgment does not record any finding on the specific issues raised in the substantial questions of law, nor does it provide reasoning for such findings, as the appeal was disposed of on a procedural ground.

What were the facts?

The appeal was filed by the Principal Commissioner of Income Tax, Coimbatore (Revenue) against the order of the Income Tax Appellate Tribunal (ITAT), Madras 'D' Bench, Chennai, dated 21.09.2016, passed in I.T.A.No.64/Mds/2005. The assessee is M/s. Talent Steels Industries Ltd. The appeal was admitted on 28.08.2018 on two substantial questions of law. The Revenue, through its learned Senior Standing Counsel, submitted that the matter is covered under the Low Tax Effect as per Circular No.9/2024 dated 17.09.2024.

What were the issues?

The Tribunal had to decide the following substantial questions of law: 1. Whether on the facts and circumstances of the case and in law, the Tribunal is correct in relying upon the judgment of the jurisdictional High Court in the case of CIT vs. Lovely Exports (P) Ltd. when the cited case is clearly distinguishable from the instant case as the share application money received in the cited case was through banking channels while the payments in the instant case were made in cash with no supporting documents? 2. Whether the ITAT has failed to consider that the burden of proof lies on the assessee to prove the identity of the creditor, creditworthiness of the applicants and genuineness of the transaction to the satisfaction of the Assessing Officer? Contentions: Assessee: No specific contentions are recorded for the assessee in the provided judgment. Revenue: The Revenue contended that the matter is covered under the Low Tax Effect as per Circular No.9/2024 dated 17.09.2024.

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.625 of 2018 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.625 of 2018 Principal Commissioner of Income Tax 1 No.63, Race Course Road Coimbatore. .. Appellant Vs. M/s. Talent Steels Industries Ltd. No.43, Vivekananda Nagar Ram Nagar, Coimbatore – 641 009 PAN: AAB CT 0944 J .. Respondent Prayer: Appeal filed under Section 260-A of the Income Tax Act, 1961, against the order of Income Tax Appellate Tribunal Madras “D”

Bench,

Chennai

dated

21.09.2016

passed

in I.T.A.No.64/Mds/2005. 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 28.08.2018 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.625 of 2018 "1. Whether on the facts and circumstances of the case and in law, the Tribunal is correct in relying upon the judgment of the jurisdictional High Court in the case of CIT vs. Lovely Exports (P) Ltd. When the cited case is clearly distinguishable from the instant case as the share application money received in the cited case was through banking channels while the payments in the instant case were made in cash with no supporting documents? 2. Whether the ITAT has failed to consider that the burden of proof lies on the assessee to prove the identity of the creditor, creditworthiness of the applicants and genuineness of the transaction to the satisfaction of the Assessing Officer?" 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.625 of 2018 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.625 of 2018 R. SURESH KUMAR, J. AND C. SARAVANAN

, J.

(drm) T.C.A.No.625 of 2018 15.10.2024 Page 4 of 4 https://www.mhc.tn.gov.in/judis

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