Madras High Court
Commissioner Of Income Tax vs M/S. Balaji Distilleries Ltd on 15 December, 2021
Tax Case Appeal Nos. 100 of 2007 and 1431 of 2008
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 15.12.2021
CORAM
THE HON'BLE MR. JUSTICE R. MAHADEVAN
AND
THE HON'BLE MR. JUSTICE MOHAMMED SHAFFIQ
Tax Case Appeal Nos. 100 of 2007 and 1431 of 2008
Commissioner of Income Tax
Chennai
.. Appellant in both Tax Case Appeals
Versus
M/s. Balaji Distilleries Ltd
No.9, Bazullah Road
T. Nagar
Chennai – 600 017
.. Respondent in both Tax Case Appeals
Prayer in T.C.A. No. 100 of 2007: Tax Case Appeal filed under Section 260A
of the Income Tax Act, 1961 against the order dated 25.08.2006 passed by the
Income Tax Appellate Tribunal, Madras “A” Bench, in
I.T.A.No.1442/Mds/2003.
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Tax Case Appeal Nos. 100 of 2007 and 1431 of 2008
Prayer in T.C.A. No. 1431 of 2008: Tax Case Appeal filed under Section 260A
of the Income Tax Act, 1961 against the order dated 31.01.2008 passed by the
Income Tax Appellate Tribunal, Madras “A” Bench, in I.T.A.No.1057/Mds/99.
For Appellant : Mr.T.Ravikumar in both TCAs.
For Respondent : Mr. N. Muthukumar in both TCAs.
COMMON JUDGMENT
(Delivered by R. MAHADEVAN, J.)
These tax case appeals have been filed by the appellant / Revenue,
challenging the orders dated 25.08.2006 and 31.01.2008 passed by the Income
Tax Appellate Tribunal, 'A' Bench, Chennai, in I.T.A.Nos.1442/Mds/2003 &
1057/Mds/99, relating to the assessment years 1999-2000 & 1988-1989
respectively.
2. In T.C.A No. 100 of 2007, the appellant has raised the following
substantial questions of law:
“1. Whether in the facts and circumstances of the
case, the Tribunal was right in holding that the assessee
was entitled to depreciation on assets taken on hire
purchase by it and leased out to the original owner?
2. Whether on the facts and circumstances of the
case, the Tribunal was right in holding that the assessee
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Tax Case Appeal Nos. 100 of 2007 and 1431 of 2008
was entitled to depreciation on assets involved in a sale and
lease back transaction, without knowing its true value?
3. Whether in the facts and circumstances of the case,
the Tribunal was right in holding that the disallowance
made on account of interest on borrowing relatable to sale
and lease back transactions is not sustainable?
4. Whether in the facts and circumstances of the case,
the Tribunal was right in holding that the disallowance
made on account of interest on loan under the asset credit
scheme for the purchase of asset is not sustainable?"
3. By order dated 18.09.2008, the appeal in T.C.A No. 1431 2008 has
been admitted on the following substantial questions of law:
“1. Whether on the facts and in the circumstances of
the case, the Tribunal was right in adjudicating the
assesse's appeal and in holding that filing of statement u/s.
209A(1)(a) is not a pre-condition for filing of estimate u/s
209(4) of the Income Tax Act?
2. Whether on the facts and circumstances of the
case, the Tribunal was right in holding that the impugned
issue is a debatable one and cannot be dealt with u/s 154?"
4. When these matters were 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
Taxes, wherein, it is stipulated that appeals shall not be filed/pursued by the
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Tax Case Appeal Nos. 100 of 2007 and 1431 of 2008
Department before the High Court in cases where the tax effect does not exceed
Rs.1,00,00,000/- (Rupees One Crore). It is further submitted that in these cases,
the tax effect is less than the threshold limit and there is no audit objection
involved. A memo has been filed through e-mail dated 09.12.2021 to that
effect.
5. 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.]
15.12.2021
Internet : Yes
Index : Yes / No
dhk
To
1. The Income Tax Appellate Tribunal,
Madras “A” Bench.
2.Commissioner of Income Tax
Chennai – 600 034
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Tax Case Appeal Nos. 100 of 2007 and 1431 of 2008
R. MAHADEVAN, J.
AND
MOHAMMED SHAFFIQ, J.
dhk
Tax Case Appeal Nos. 100 of 2007
& 1431 of 2008
15.12.2021
https://www.mhc.tn.gov.in/judis
