Madras High Court
Commissioner Of Income Tax vs M/S. Tamilnadu Food Grains ... on 17 December, 2021
T.C.A. No. 590 of 2021
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 17.12.2021
CORAM :
THE HON'BLE MR. JUSTICE R. MAHADEVAN
AND
THE HON'BLE MR. JUSTICE MOHAMMED SHAFFIQ
T.C.A. No. 590 of 2021
Commissioner of Income Tax
Circle-I
Madurai-625 002. ... Appellant
Vs.
M/s. Tamilnadu Food Grains Marketing Yard
Madurai-Alanganallur Road
Sikkandarachavadi
Madurai – 625 018.
PAN : AAB CT 1101 F ... Respondent
Tax Case Appeal filed under Section 260A of the Income Tax Act, 1961
against the order dated 31.05.2016 passed by the Income Tax Appellate
Tribunal, Madras “A” Bench, in I.T.A. No. 635/Mds/2016 for the assessment
year 2011-12.
For Appellant : Mrs. V.Pushpa
Junior Standing Counsel
For Mr. M.Swaminathan
Senior Standing Counsel
JUDGMENT
https://www.mhc.tn.gov.in/judis
T.C.A. No. 590 of 2021
(Judgment was delivered by R. MAHADEVAN, J.)
This tax case appeal has been filed by the appellant / Revenue, calling in
question the correctness of the order dated 31.05.2016 passed by the Income
Tax Appellate Tribunal, 'A' Bench, Chennai, in I.T.A. No. 635/Mds/2016,
relating to the assessment year 2011-12, by raising the following substantial
questions of law:-
(i) Whether on the facts and circumstances of the case and
in law, Tribunal was right and justified in holding that grants-in-
aid received towards acquisition of assets should not be deducted
from cost of assets while computing depreciation under Section
32 read with explanation 10 to section 43(1)?
(ii) Whether on the facts and circumstances of the case and
in law, Tibunal was right and jusitifed in holding that incentive in
the form of grants-in-aid cannot be considered as payment
directly or indirectly to meet portion of actual cost of asset,
whereas clause D. of letter No.5/28/62004 – DBA 1/07.11.2004
issued by Ministry of Commerce & Industry specifically provides
for it?”
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T.C.A. No. 590 of 2021
2. 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 Taxes,
wherein, it is stipulated that appeal 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.
3. 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 cases.
No costs.
[R.M.D,J.] [M.S.Q, J.]
17.12.2021
Internet : Yes
Index : Yes / No
Maya
https://www.mhc.tn.gov.in/judis
T.C.A. No. 590 of 2021
R. MAHADEVAN, J.
AND
MOHAMMED SHAFFIQ, J.
Maya
To
1. The Commissioner of Income Tax
Circle-I
Madurai-625 002.
2. The Income Tax Appellate Tribunal,
Chennai 'A' Bench.
Tax Case Appeal No. 590 of 2021
Dated : 17.12.2021
https://www.mhc.tn.gov.in/judis
