Madras High Court
The Commissioner Of Income Tax vs M/S.Sterling Agro Products ... on 17 August, 2022
T.C.A.Nos.364 and 365 of 2015
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED 17.08.2022
CORAM
THE HON'BLE Mr. JUSTICE R. MAHADEVAN
AND
THE HON'BLE Mr. JUSTICE MOHAMMED SHAFFIQ
Tax Case Appeal Nos.364 and 365 of 2015
AND
M.P.Nos.1 and 1 of 2015
The Commissioner of Income Tax
Chennai .. Appellant in both T.C.As
Vs.
M/s.Sterling Agro Products Processing Pvt. Ltd.
Sterling Tower, 327, Anna Salai
Teynampet
Chennai 600 018 .. Respondent in both T.C.As
Tax Case Appeals filed under Section 260A of the Income Tax Act, 1961
against the common order dated 26.08.2011 passed by the Income Tax
Appellate Tribunal, 'B' Bench, Chennai, in respective I.T.A.Nos.620/Mds/2011
and 600/Mds/2011.
For Appellant : Mr.J.Narayanasamy
in both T.C.As Standing Counsel
https://www.mhc.tn.gov.in/judis
1/4
T.C.A.Nos.364 and 365 of 2015
COMMON JUDGMENT
(Judgment was delivered by R. MAHADEVAN, J.)
These tax case appeals have been filed by the appellant/Revenue, calling
in question the correctness of the common order dated 26.08.2011 passed by
the Income Tax Appellate Tribunal, 'B' Bench, Chennai, in respective
I.T.A.Nos.620/Mds/2011 and 600/Mds/2011, for the respective assessment
years 2006-07 and 2007-08.
2. By order dated 22.07.2015, this Court admitted the aforesaid tax case
appeals on the following substantial question of law :
“(i) Whether on the facts and circumstances of the case,
the Tribunal was right in holding that the disallowance of
advance given to the farmers written off by the assessee is
allowable especially when no evidence were produced to show
that debts had occurred during the earlier assessment year for
writing off of such sum advanced?
(ii) Whether on the facts and in the circumstances of the
case, the Tribunal was right in holding that the amounts
advanced to farmer were to be written off especially when the
same had been shown in the accounts as selling and distribution
expenses and no material was produced by the assessee to
substantiate the said claim?”
https://www.mhc.tn.gov.in/judis
2/4
T.C.A.Nos.364 and 365 of 2015
3. 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
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 are 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. Consequently, connected miscellaneous petitions are closed.
[R.M.D,J.] [M.S.Q, J.]
17.08.2022
Index : Yes / No
gya
https://www.mhc.tn.gov.in/judis
3/4
T.C.A.Nos.364 and 365 of 2015
R. MAHADEVAN, J.
AND
MOHAMMED SHAFFIQ, J.
gya
To
1.The Commissioner of Income Tax
Chennai
2.The Assistant Commissioner of Income Tax
Company Circle-VI(4)
Chennai
3.The Commissioner of Income Tax (Appeals)-VI
Chennai
4.The Income Tax Appellate Tribunal
'B' Bench, Chennai
T.C.A.Nos.364 and 365 of 2015
17.08.2022
https://www.mhc.tn.gov.in/judis
