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Madras High Court

Commissioner Of Income Tax vs Tt Krishnamachari & Co on 22 August, 2022

Author: R. Mahadevan

Bench: R. Mahadevan, Mohammed Shaffiq

                                                                                   TCA.No.900 of 2014


                                   IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                                DATED : 22.08.2022

                                                      CORAM

                                  THE HONOURABLE MR. JUSTICE R. MAHADEVAN
                                                           and
                          THE HONOURABLE MR. JUSTICE MOHAMMED SHAFFIQ


                                                T.C.A.No. 900 of 2014

                      Commissioner of Income Tax,
                      Chennai                                                 ..     Appellant
                                                          Versus

                      TT Krishnamachari & Co.
                      6 Cathedral Road,
                      Cennai 600 086                                           .. Respondent

                            Tax Case Appeal filed under Section 260-A of the Income Tax
                      Act, 1961 against the order of the Income Tax Appellate Tribunal Madras
                      “B” Bench, dated 19.10.2011 passed in I.T.A.No.1185/Mds/2009 in
                      respect of assessment year 2001- 02.


                                          For Appellant     : M/s.M. Swaminathan and
                                                              V. Pushpa
                                                              Standing Counsel

                                          For Respondent : Mr.R.Venkata Narayanan
                                                           for M/s. Subbaraya Aiyar




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https://www.mhc.tn.gov.in/judis
                                                                                         TCA.No.900 of 2014


                                                             JUDGMENT

(Judgment of the Court was delivered by R. MAHADEVAN, J.) This Tax Case Appeal has been filed by the appellant / revenue, questioning the correctness of the order dated 19.10.2011 passed by the Income Tax Appellate Tribunal Madras “B” Bench, in I.T.A.No.1185/Mds/2009 for the assessment year 2001-02.

2. On 22.12.2014, this tax case appeal is admitted by this Court on the following substantial questions of law;

' 1. Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in holding that the assessee was entitled for deduction of interest on the loan obtained from ICICI Bank which was diverted tot he sister company TTK Textile Ltd.

2. Whether on the facts and in the circumstances of the case, the Tribunal was right in holding that the assessee is entitled for deduction of commission and 50% of professional fee paid to late Shri.T.T.Vasu?”

3. When the matter was taken up for consideration, the learned counsel for the appellant / Revenue brought to the notice of this court the Circular No.17/2019 dated 08.08.2019 issued by the Central Board Direct 2/4 https://www.mhc.tn.gov.in/judis TCA.No.900 of 2014 Taxes, wherein, it is stipulated that appeals shall not be filed/pursued by the Department before the High Court in cases where the tax effect does not exceed Rs.1,00,00,000/- (Rupees One Crore). It is also submitted that the tax effect in this appeal is less than the threshold limit.

4. In the light of the aforesaid submissions made by the learned counsel for the appellant / Revenue, the present appeal, wherein, the tax effect is said to be less than the monetary limit imposed, is dismissed as withdrawn, keeping open the substantial questions of law for determination in an appropriate case. No costs.

                                                                     [R.M.D,J.]             [M.S.Q.,
                      J.]
                                                                            22.08.2022
                      msr
                      Index : Yes / No
                      To

1. The Deputy Commissioner of Income Tax, Circle -XV, Chennai.

2. The Commissioner of Income Tax (Appeals) XII Chennai-34..

3. The Income Tax Appellate Tribunal Madras “B” Bench, Chennai.

R. MAHADEVAN, J.

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https://www.mhc.tn.gov.in/judis TCA.No.900 of 2014 and MOHAMMED SHAFFIQ, J.

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