Madras High Court
Principal Commissioner Of Income ... vs Unknown on 23 June, 2021
T.C.A.No.328 of 2021
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATE: 23.06.2021
CORAM:
THE HON'BLE MR. JUSTICE M.DURAISWAMY
AND
THE HON'BLE MRS.JUSTICE R.HEMALATHA
T.C.A.No.328 of 2021
Principal Commissioner of Income Tax,
Corporate Circle – 2(2),
Nungambakkam,
Chennai – 600 034. ... Appellant
v.
M/s. Northern ARC Capital Ltd.,
(Formerly known as IFMR Capital Finance Ltd.)
10th Floor, Phase – I,
IIT – Madras Research Park.
Kanga Village, Taramani,
Chennai – 600 113.
PAN AACC10979B. ... Respondent
Appeal preferred under Section 260A of the Income Tax Act,
1961, against the order of the Income Tax Appellate Tribunal, Madras,
"A" Bench, dated 20.03.2019 in ITA.No.2569/Chny/2018 for the
Assessment Year 2012-2013.
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T.C.A.No.328 of 2021
For Appellant : Mr. Karthik Ranganathan
Senior Standing Counsel
For Respondent : S.P. Chidambaram
JUDGMENT
(Judgment was delivered by M. DURAISWAMY, J.)
We have heard Mr. Mr. Karthik Ranganathan, learned Senior
Standing Counsel for the appellant/Revenue and Mr. S.P. Chidambaram,
learned counsel for the respondent/assessee.
2.The appeal, filed by the Revenue under Section 260A of the
Income Tax Act, 1961 (for short, the Act) is directed against the order
dated 20.03.2019 made in I.T.A.No.2569/Chny/2018 on the file of the
Income Tax Appellate Tribunal, Chennai, "A" Bench (for brevity, the
Tribunal) for the Assessment Year 2012-2013.
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T.C.A.No.328 of 2021
3. The above appeal was admitted on the following substantial
questions of law:
“(i) Whether on the facts and circumstances of
the case and in law, the Tribunal is right in holding
that the payment of processing fee for availing the
loan is allowable as revenue expenditure in the year
in which it was paid, even if, the assessee had written
off this amount in its books over a period of time?
(ii) Whether on the facts and circumstances of
the case and in law, the Tribunal is right in not
following the Apex Court decision in the case of
M/s. Madras Industrial Investment Corporation
Ltd. Vs. CIT [1997] 225 ITR 802(SC) wherein it
was held that the assessee was not entitled to claim
the deduction of entire amount of expenditure in
accounting year related to year of issue itself?
(iii) Whether on the facts and circumstances of
the case and in law, the Tribunal is right not in
following the holding Apex Court decision in the
case of M/s. Indian Molases Co. Ltd. Vs. CIT
[1959] 37 ITR 66(SC) wherein it was held that
putting aside of money which may become
expenditure in happening of an event is not allowable
as expenditure?"
4. The learned Senior Standing Counsel appearing for the
appellant submits that the above appeal is not pursued by the Revenue on
account of the Low Tax Effect in terms of Circular No.17/2019 dated
08.08.2019 issued by the Central Board of Direct Taxes. By the said
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T.C.A.No.328 of 2021
Circular, the monetary limit for filing or pursuing an appeal before the
High Court has been increased to Rs.1 crore. It is further submitted that
the tax effect in this case is less than the threshold limit.
5.In the light of the said submissions, the above Tax Case Appeal
is dismissed as withdrawn on account of the Low Tax Effect. The
substantial questions of law framed is left open. In the event the tax
effect in this case is above the threshold limit fixed in the said Circular,
liberty is granted to the Revenue to make a mention to this Court to
restore the appeal to be heard and decided on merits. No costs.
[M.D., J.] [R.H., J.]
Index : Yes/No 23.06.2021
Internet : Yes
Rj
To
The Income Tax Appellate Tribunal,
Chennai,"A" Bench
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T.C.A.No.328 of 2021
M. DURAISWAMY, J.
and
R.HEMALATHA,J
Rj
T.C.A.No.328 of 2021
23.06.2021
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