Madras High Court
The Commissioner Of Income Tax vs M/S.Express News Papers Ltd on 28 January, 2020
Author: V.K
Bench: Vineet Kothari, R.Suresh Kumar
Judgt. dt. 28.1.2020 in T.C.1439/2008, etc.
CIT v. Express News Papers
1/5
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 28.1.2020
CORAM
THE HON'BLE DR.JUSTICE VINEET KOTHARI
AND
THE HON'BLE MR.JUSTICE R.SURESH KUMAR
Tax Case Nos.1439, 1440, 1443, 1444 & 1445 of 2008
The Commissioner of Income Tax,
Tamil Nadu-I, Madras. Appellant
Vs.
M/s.Express News Papers Ltd.,
Express Estates, Anna Salai,
Chennai 600 002. Respondent
Tax Cases filed under Section 260A of the Income Tax Act, 1961
against the order of the Income Tax Appellate Tribunal, 'A' Bench,
Chennai, dated 31.10.2006 made in ITA No.503/Mds/2001, WTA
No.50/Mds/2001, ITA Nos.1748/Mds/2002, 1875/Mds/2002 and
587/Mds/2003.
For Appellant : Mr.Karthik Ranganathan
Senior Standing Counsel
For Respondent : Mr.M.P.Senthilkumar for
Mr.G.Baskar
COMMON JUDGMENT
(Delivered by DR.VINEET KOTHARI,J) These Tax Cases have been filed by the Revenue, calling in question the correctness of the order passed by the Income Tax Appellate Tribunal, 'A' Bench, Chennai, dated 31.10.2006 made in ITA Nos.503/Mds/2001, 50/Mds/2001, 1748/Mds/2002, 1875/Mds/2002 http://www.judis.nic.in Judgt. dt. 28.1.2020 in T.C.1439/2008, etc. CIT v. Express News Papers 2/5 and 587/Mds/2003, for the Assessment Years 1990-1991, 1997-1998 and 1998-1999 by raising the following substantial questions of law: "T.C.1439/2008
(i) Whether on the facts and circumstances of the case, the Appellate Tribunal was right in holding that the Assessee is entitled for 100% depreciation on sale and lease back transaction even though no real transaction took place during the assessment year in question?
(ii) Whether on the facts and circumstances of the case, the Appellate Tribunal was right in directing the assessing officer to allow deduction towards remuneration paid to M/s.Haritha Finance Pvt. Ltd. even though there is no genuine transaction between the parties concerned?"
T.C.1440/2008
"Whether on the facts and circumstances of the case, the Appellate Tribunal was right in law in remitting the matter back to the AO for fresh consideration even though adoption of gross rent of the portion let out to Indian Express (Bombay Ltd.) arrived at by the AO is in http://www.judis.nic.in Judgt. dt. 28.1.2020 in T.C.1439/2008, etc. CIT v. Express News Papers 3/5 accordance with the Act?"
T.C.1443 & 1444 of 2008 Whether on the facts and circumstances of the case, the Appellate Tribunal was right in law in deleting the penalty levied under Section 271(1)(c) of the Income Tax Act, 1961 in respect of foreign travel which have no nexus over the business of the assessee? T.C.1445/2008
i) Whether on the facts and circumstances of the case, the Appellate Tribunal was right in law in remitting the matter back to the AO with a direction to follow the High Court decision reported in 227 ITR 325 even though the AO correctly disallowed 75% of the expenses in accordance with law?
ii) Whether on the facts and circumstances of the case, the Appellate Tribunal was right in law in allowing bad debt being the amount transferred to bad debts reserve account as not recoverable when it was not actually written off?"
2. When the matters are taken up for hearing, learned Senior Standing Counsel brought to our notice the Circular instruction issued http://www.judis.nic.in Judgt. dt. 28.1.2020 in T.C.1439/2008, etc. CIT v. Express News Papers 4/5 by the Central Board of Direct Taxes vide Circular No.17/2019 dated 8th August 2019, 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).
3. In the instant cases, the tax effect is said to be less than the monetary limit imposed and therefore, the Appeals filed by the Revenue are dismissed, as withdrawn, keeping open the substantial questions of law for determination in appropriate cases. No costs.
(V.K.,J.) (R.S.K.,J.)
28.1.2020
Index : Yes/No
Internet : Yes/No
ssk.
To
1. The Commissioner of Income Tax, Tamil Nadu-I, Madras.
2. Income Tax Appellate Tribunal, 'A' Bench, Chennai.
3. M/s.Express News Papers Ltd., Express Estates, Anna Salai, Chennai 600 002.
http://www.judis.nic.in Judgt. dt. 28.1.2020 in T.C.1439/2008, etc. CIT v. Express News Papers 5/5 DR.VINEET KOTHARI, J.
and R.SURESH KUMAR, J.
ssk.
T.C.Nos.1439, 1440, 1443, 1444 & 1445 of 2008 28.1.2020.
http://www.judis.nic.in