Madras High Court
Commissioner Of Income Tax-Iii vs Southern Polymers (P) Ltd on 25 January, 2017
Author: Anita Sumanth
Bench: Huluvadi G. Ramesh, Anita Sumanth
IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 25.1.2017 CORAM THE HON'BLE MR.JUSTICE HULUVADI G. RAMESH AND THE HON'BLE DR.JUSTICE ANITA SUMANTH Tax Case (Appeal) No.968 of 2008 Commissioner of Income Tax-III, Chennai. ... Appellant Vs. Southern Polymers (P) Ltd. No.12, III Main Road, Kasturba Nagar, Adyar, Chennai 600 020. ... Respondent Tax Case Appeal filed under Sec. 260A of the Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal, Madras 'C' Bench, Chennai, dated 5.10.2007 in ITA No.799/Mds/2003. For Appellant : Mr.J.Narayanasamy Standing Counsel For Respondent : Mr.R.Sivaraman JUDGMENT
(Judgment of the Court was delivered by Dr.Anita Sumanth, J.,) The Tax Case Appeal filed by the Revenue calling in question the correctness of the order passed by the Income Tax Appellate Tribunal, Madras 'C' Bench, Chennai, dated 5.10.2007 in ITA No.799/Mds/2003, has been admitted on 17.7.2008 for consideration of the following substantial questions of law:
"(i) Whether in the facts and in the circumstances of the case, the Tribunal was right in holding that the assessee is in the business of money lending when it is a manufacturing company and the only amounts lent were to sister concerns?
(ii) Whether in the facts and in the circumstances of the case, the Tribunal was right in holding that the amounts given to the parties were in the course of money lending business, and as such the administrative expenditure could be deducted as business expenditure?"
2. Circular instruction issued by the Central Board of Direct Taxes No.21/2015, dated 10.12.2015 stipulates that appeals shall not be filed/pursued by the Department before the High Court in cases where the tax effect does not exceed Rs.20 lakhs. In the instant case, the tax effect is less than the monetary limit imposed and the appeal is, hence, dismissed as not pressed, preserving the substantial questions of law for determination in an appropriate case. No cost.
(H.G.R.,J.) (A.S.M.,J.) 25.1.2017.
ssk.
Index: Yes/No. Internet: Yes/No. HULUVADI G. RAMESH, J.
and Dr.ANITA SUMANTH,J.
ssk.
T.C.A.No.968 of 2008
25.1.2017.
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