Madras High Court
The Commissioner Of Income Tax vs Green Home Landscape Private ... on 1 August, 2022
T.C.A.No.813 of 2014
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 01.08.2022
CORAM :
THE HONOURABLE MR. JUSTICE R. MAHADEVAN
AND
THE HONOURABLE MR. JUSTICE MOHAMMED SHAFFIQ
T.C.A.No.813 of 2014
The Commissioner of Income Tax,
Coimbatore. ...
Appellant
Versus
Green Home Landscape Private Limited,
550 Whites Building,
DB Road, R.S.Puram,
Coimbatore 641 002. ...
Respondent
Appeal preferred under Section 260A of the Income Tax Act, 1961,
against the order dated 05.02.2013 passed by the Income Tax Appellate
Tribunal, “C” Bench, Chennai, in I.T.A.No.2024/Mds/2012.
For Appellant : Mr.Karthik Ranganathan
Senior Standing Counsel
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T.C.A.No.813 of 2014
For Respondent : Mr.B.Ramana Kumar
JUDGMENT
(Judgment of the Court was delivered by R.MAHADEVAN, J.)
This tax case appeal has been filed by the appellant / Revenue,
challenging the order dated 05.02.2013 passed by the Income Tax Appellate
Tribunal, “C” Bench, Chennai, in I.T.A.No.2024/Mds/2012, relating to the
assessment year 2009-10.
2.By order dated 19.11.2014, this court admitted the aforesaid tax case
appeal on the following substantial questions of law:
“(i) Whether under the facts and circumstances of the
case, the Income Tax Appellate Tribunal was right in holding
that the disallowance of Rs.85,55,372/- made by the assessing
officer for the violation of the provisions of Section 40A(3) of
the Income Tax Act, is not justified?
(ii) Whether under the facts and circumstances of the
case, the Income Tax Appellate Tribunal was right in holding
that expenditure incurred in the earlier previous years cannot
be disallowed in the year under appeal, though the assessee
had claimed the deduction only in the year under appeal?
(iii) Whether under the facts and in the circumstances of
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T.C.A.No.813 of 2014
the case, the Income Tax Appellate Tribunal was right in
holding that the expenditure debited in the profit and loss
account during the previous year is not the expenditure related
to the previous year and has to be disallowed in the year of
payment by applying provisions of section 40A(3)?
(iv) Whether under the facts and circumstances of the
case, the Income Tax Appellate Tribunal was right in holding
that there could be no disallowance where the payee and the
payer were identified and genuineness of the payments were
established?
(v) Whether on the facts and circumstances of the case,
the Income Tax Appellate Tribunal was right in concluding that
the lands were purchased from agriculturalists and they will
not sell unless they receive cash and consequently section
40A(3) does not apply?"
3.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.
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T.C.A.No.813 of 2014
4.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 case.
No costs.
(R.M.D., J.) (M.S.Q., J.)
01.08.2022
Internet : Yes
Index : Yes / No
av
To
1. The Income Tax Appellate Tribunal,
“C” Bench, Chennai.
2. The Commissioner of Income Tax,
Coimbatore.
3. The Deputy Commissioner of Income-tax,
Company Circle - I(3),
Coimbatore.
4. The Commissioner of Income Tax (Appeals) - I,
Coimbatore.
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T.C.A.No.813 of 2014
R. MAHADEVAN, J.
and
MOHAMMED SHAFFIQ, J.
av
T.C.A.No.813 of 2014
01.08.2022
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