The Commissioner Of Income Tax vs M/S. Rmk Viswanatha Pillai & Sons
2022 Latest Caselaw 14682 Mad

                                                                                    T.C.A.No.445 of 2017




                                  IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                               DATED : 18.08.2022

                                                      CORAM :

                           THE HONOURABLE MR. JUSTICE R. MAHADEVAN
                                              AND
                         THE HONOURABLE MR. JUSTICE MOHAMMED SHAFFIQ

                                              T.C.A.No.445 of 2017

                  The Commissioner of Income Tax,
                  Central Circle 1,
                  Chennai.                                                          ... Appellant

                                                       Versus

                  M/s. RMK Viswanatha Pillai & Sons
                  No.176F Trivandrum Road,
                  Tirunelveli 627 003.
                  PAN: AABFR 1307 C                                            ... Respondent


                            Appeal preferred under Section 260A of the Income Tax Act, 1961,
                  against the order dated 08.02.2017 passed by the Income Tax Appellate
                  Tribunal, “A” Bench, Chennai, in I.T.A.No.1451/Mds/2016.


                            For Appellant         :      Mr.M.Swaminathan,
                                                         Senior Standing Counsel
                                                         Mrs.V.Pushpa, Standing Counsel

                            For Respondent        :      Mr.R.Venkatanarayanan
                                                         for M/s. Subbaraya Aiyar

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                                                                                            T.C.A.No.445 of 2017




                                                     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 08.02.2017 passed by the Income Tax Appellate

Tribunal, “A” Bench, Chennai, in I.T.A.No.1451/Mds/2016, relating to the

assessment year 2011-12.

2.By order dated 09.08.2017, this court admitted the aforesaid tax case

appeal on the following substantial questions of law:

“(i) Whether the Tribunal was right in treating hospitality expenses (Bonus redemption expenses) as accrued liability, even though the incurring of liability fully depends upon the uncertain future visit of the customers, and there is no scientific method to estimate the future visit and purchase of customers?

(ii) Whether the Tribunal erred in law in deleting the addition of hospitality expenses (Bonus redemption expenses) rejecting the contention of the Revenue that the expenditure shown was only a contingent liability? "

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

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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.

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 question of law for determination in an

appropriate case. No costs.

                                                                     (R.M.D., J.)    (M.S.Q., J.)
                                                                              18.08.2022

                  Internet : Yes
                  Index : Yes / No
                  av




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https://www.mhc.tn.gov.in/judis T.C.A.No.445 of 2017

R. MAHADEVAN, J.

and MOHAMMED SHAFFIQ, J.

av

To

1. The Income Tax Appellate Tribunal, “A” Bench, Chennai.

2. The Commissioner of Income Tax, Central Circle 1, Chennai.

3. The Deputy Commissioner of Income-tax, Company Circle- (1) (1), Chennai.

4. The Commissioner of Income Tax (Appeals), Chennai.

T.C.A.No.445 of 2017

18.08.2022

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