Commissioner Of Income Tax vs M/S. Bgr Energy System Limited
2024 Latest Caselaw 21529 Mad

Madras High Court

Commissioner Of Income Tax vs M/S. Bgr Energy System Limited on 12 November, 2024

Author: R. Suresh Kumar

Bench: R. Suresh Kumar, C. Saravanan

                                                                                  T.C.A.No.279 of 2023



                                     IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                                      DATED: 12.11.2024

                                                           CORAM :

                                    THE HONOURABLE MR.JUSTICE R. SURESH KUMAR
                                                       AND
                                     THE HONOURABLE MR.JUSTICE C. SARAVANAN

                                                      T.C.A.No.279 of 2023

                     Commissioner of Income Tax
                     Chennai.                                                ..     Appellant

                                                               Vs.

                     M/s. BGR Energy System Limited
                     Guna Building, Anna Salai, 433
                     Teynampet, Chennai 600 018.
                     [PAN AABCG2202J]                                        ..     Respondent

                     Prayer: Appeal filed under Section 260-A of the Income Tax Act,

                     1961, against the order of Income Tax Appellate Tribunal Madras

                     “A” Bench dated 21.09.2022 passed in I.T.A.No.28/CHNY/2021.



                                  For the Appellant              :    Mr.Karthik Ranganathan
                                                                 Senior Standing Counsel

                                  For the Respondent       :     Mr.R.Sivaraman

                                                        JUDGMENT

(Order of the Court was made by R.SURESH KUMAR, J.) The present tax case appeal was admitted on 08.06.2023 on

the following substantial questions of law:-

"1.Whether in the facts and circumstnace of the https://www.mhc.tn.gov.in/judis

case, the Tribunal is right in restricting the disallowance of expenditure u/s. 14A read with Rule 8D to the extent of exempt income earned even though there is no express provision in Section 14A and Rule 8D, restricting the disallowance u/s. 14A to the extent of exempt income earned by the assessee?

2. Whether in the facts and circumstance of the case, the Tribunal erred in law in observing that the amendment made to Section 14A by the Finance Act, 2022 will take effects from 1st April, 2022, ignoring the express provision that the amendment was inserted "for the removal of doubts" and hence have retrospecitve application?

3. Whether in the facts and circumstance of the case, the Tribunal was justified in law, in holding that the book profit computed under the provision of Section 115jb of the IT Act shall not be increased by the sum attributable to 14A disallowance, whereas clause (f) of explanation 1 to Section 115JB(2) of the Act clearly states that "book profit the purposeof Section 115JB of the IT Act shall be increased by the amount or amount of expenditure relatable to any income to which Section 12 apply?"

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2. It is submitted by the learned Senior Standing Counsel

appearing for the appellant Revenue that this matter is covered

under the Low Tax Effect as per the recent Circular dated

17.09.2024, in Circular No.9/2024.

3. Hence, this appeal stands dismissed, as covered under the

low tax effect and the substantial questions of law raised in this

appeal are kept open to be decided at the later point of time.

There shall be no order as to costs.

                                                               (R.S.K., J.)          (C.S.N, J)
                                                                           12.11.2024

                     Neutral Citation:Yes/No

                     drm

https://www.mhc.tn.gov.in/judis

R. SURESH KUMAR, J.

AND C. SARAVANAN, J.

(drm)

12.11.2024

https://www.mhc.tn.gov.in/judis