Madras High Court
The Commissioner Of Income Tax vs M/S.Gem Granites on 3 March, 2025
Author: S.S. Sundar
Bench: S.S.Sundar, C.Saravanan
T.C.A.Nos.1337 and 1339 of 2010
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 03.03.2025
CORAM
THE HONOURABLE MR. JUSTICE S.S.SUNDAR
and
THE HONOURABLE MR. JUSTICE C.SARAVANAN
Tax Case (Appeal) Nos.1337 and 1339 of 2010
The Commissioner of Income Tax,
Chennai. ... Appellant
in both Appeals
Vs.
M/s.Gem Granites,
76, Cathedral Road,
Chennai - 86. ... Respondent
in both Appeals
Prayer in T.C.A.No.1337 of 2010: The Tax Case Appeal is filed under
Section 260A of Income Tax Act, 1961, against the order of the Income
Tax Appellate Tribunal, Madras "A" Bench, dated 28.02.2007 passed in
I.T.A.No.515/Mds/05.
Prayer in T.C.A.No.1339 of 2010: The Tax Case Appeal is filed under
Section 260A of Income Tax Act, 1961, against the order of the Income
Tax Appellate Tribunal, Madras "A" Bench, dated 28.02.2007 passed in
I.T.A.No.531/Mds/05.
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T.C.A.Nos.1337 and 1339 of 2010
For Appellant : Mr.Karthik Ranganathan
in both Appeals Senior Standing Counsel
For Respondent : Mr.G.Baskar
in both Appeals
-----
JUDGMENT
(Judgment of the Court was delivered by S.S. SUNDAR, J.) The present Tax Case Appeals have been filed against the order of the Income Tax Appellate Tribunal, Madras "A" Bench, dated 28.02.2007 passed in I.T.A.No.515/Mds/05 and I.T.A.No.531/Mds/05, respectively.
2. In these appeals, the appellant has raised the following substantial questions of law to be answered:-
"1. Whether on the facts and circumstances of the case, the Tribunal was right in holding that additions of Rs.5.40 Cr. and Rs.5.04 Cr. for the assessment years 2000-01 and 2001- 02 cannot be made towards interest free lending of the interest bearing funds by assessee to its sister concern?
2. Whether on the facts and circumstances of the case, the Tribunal was right in holding interest incomes returned by the assessee are to be treated as business income and same is eligible for deduction under Section 80 HHC?
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3. Whether on the facts and circumstances of the case, the Tribunal was right in holding that the interest under Section 234D is not leviable on the assessee for the present assessment years?"
3. Today when the matters are taken up for hearing, the learned Senior Standing Counsel appearing for the appellant/Department submitted that the amount involved in the present appeals is below the monetary limit as per the circulars issued by the Government of India, Ministry of Finance, Department of Revenue, Central Board of Direct Taxes in Circular No. 5/2024 and 09/2024 dated 15.03.2024 and 17.09.2024 respectively. He therefore, submitted that these appeals may be dismissed as withdrawn.
4. In view of the aforesaid submissions made by the learned Senior Standing Counsel for the appellant, these Tax Case Appeals are dismissed as withdrawn. However, the substantial questions of law are left open. There shall be no order as to costs.
(S.S.S.R., J.) (C.S.N., J.) 03.03.2025 ASI https://www.mhc.tn.gov.in/judis ( Uploaded on: 12/03/2025 03:35:35 pm ) Page 3/4 T.C.A.Nos.1337 and 1339 of 2010 S.S. SUNDAR, J.
and C. SARAVANAN, J.
ASI To The Income Tax Appellate Tribunal, Madras "A" Bench.
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