Madras High Court
The Commissioner Of Income Tax vs M/S. Sterling Agro Products Processing ... on 29 August, 2022
Author: R.Mahadevan
Bench: R. Mahadevan, Mohammed Shaffiq
T.C.A.Nos.361 to 363 of 2015
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 29.08.2022
CORAM :
THE HONOURABLE MR. JUSTICE R. MAHADEVAN
AND
THE HONOURABLE MR. JUSTICE MOHAMMED SHAFFIQ
T.C.A.Nos.361 to 363 of 2015
The Commissioner of Income Tax,
Chennai. ... Appellant in all
TCAs
Versus
M/s. Sterling Agro Products Processing Pvt. Ltd.,
Sterling Tower, 327, Anna Salai,
Teynampet, Chennai - 600 018. ... Respondent in all TCAs
Appeals preferred under Section 260A of the Income Tax Act, 1961,
against the order dated 26.08.2011 passed by the Income Tax Appellate
Tribunal, “B” Bench, Chennai, in I.T.A.Nos.598, 599 and 600/Mds/2011.
For Appellant : Mr.J.Narayanaswamy
Standing Counsel in all TCAs
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T.C.A.Nos.361 to 363 of 2015
COMMON JUDGMENT
(Judgment of the Court was delivered by R.MAHADEVAN, J.) These tax case appeals have been filed by the appellant / Revenue, challenging the common order dated 26.08.2011 passed by the Income Tax Appellate Tribunal, “B” Bench, Chennai, in I.T.A.Nos.598, 599 and 600/Mds/2011, relating to the assessment years 2005-06, 2006-07 and 2007-08.
2. By order dated 22.07.2015, this court admitted the aforesaid tax case appeals on the following substantial questions of law:
T.C.A.Nos.361 and 363 of 2015:-
“(i) Whether on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding that the assessee was entitled to deduction under Section 10B of the Income Tax Act in regard to its business of manufacturing gherkin pickles?
(ii) Whether on the facts and circumstances of the case, the Tribunal was right in holding that the disallowance of advance given to the farmers for the supply of raw materials written off is to be allowed especially when the assessee has not provided proof that the debts had occurred during the earlier assessment year for writing off of such amount?Page 2/6
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(iii) Whether on the facts and in the circumstances of the case, the Tribunal was right in allowing the claim of the assessee especially when the same was shown as irrecoverable advances under the head "Selling and distribution expenses" and no proof for the same was also furnished by the assessee? "
T.C.A.No.362 of 2015:-
“(i) Whether on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding that the assessee was entitled to deduction under Section 10B of the Income Tax Act?
(ii) Whether on the facts and circumstances of the case, the Tribunal was right in holding that the disallowance of advance given to the farmers for the supply of raw materials written off is to be allowed especially when the assessee has not provided proof to show that the debts had occurred during the earlier assessment year for writing off of such amount?
(iii) Whether on the facts and in the circumstances of the case, the Tribunal was right in allowing the claim of the assessee especially when the same was shown as irrecoverable advances under the head "Selling and distribution expenses" and no proof for the same was also furnished by the assessee?"
3. When the matters were taken up for consideration, the learned counsel for the appellant / Revenue brought to the notice of this court the Page 3/6 https://www.mhc.tn.gov.in/judis T.C.A.Nos.361 to 363 of 2015 Circular No.17/2019 dated 08.08.2019 issued by the Central Board Direct 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 these appeals 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 appeals, wherein, the tax effect is said to be less than the monetary limit imposed, are dismissed as withdrawn, keeping open the substantial questions of law for determination in appropriate cases. No costs.
(R.M.D., J.) (M.S.Q., J.)
29.08.2022
Internet : Yes
Index : Yes / No
av
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1. The Income Tax Appellate Tribunal, “B” Bench, Chennai.
2. The Commissioner of Income Tax, Chennai.
3. The Assistant Commissioner of Income-tax, Company Circle - VI(4), Chennai.
4. The Commissioner of Income Tax (Appeals)-VI, Chennai.
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and MOHAMMED SHAFFIQ, J.
av T.C.A.Nos.361 to 363 of 2015 29.08.2022 Page 6/6 https://www.mhc.tn.gov.in/judis