The Commissioner Of Income Tax vs M/S.Tamil Nadu Small Industries
2024 Latest Caselaw 19787 Mad

Madras High Court

The Commissioner Of Income Tax vs M/S.Tamil Nadu Small Industries on 21 October, 2024

Bench: R.Suresh Kumar, C.Saravanan

                                                                                   T.C.A.No.885 of 2015

                                  IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                                   DATED: 21.10.2024

                                                        CORAM

                                   THE HON'BLE MR.JUSTICE R.SURESH KUMAR
                                                    AND
                                    THE HON'BLE MR.JUSTICE C.SARAVANAN

                                          Tax Case Appeal No.885 of 2015
                                               and M.P.No.1 of 2015


                   The Commissioner of Income Tax
                   Company Circle III, Chennai.                                    ....   Appellant

                                                           Vs.

                   M/s.Tamil Nadu Small Industries
                   Corporation Ltd., Thiru.Vi.Ka.Industrial
                   Estate, Guindy, Chennai-32.                                     ....   Respondent
                                                          -----
                             Tax Case Appeal filed under Section 260A of the Income Tax Act, 1961
                   against the order of the Income Tax Appellate Tribunal, 'C' Bench Chennai,
                   dated 19.12.2014 made in I.T.A.No.1567/Mds/2014.


                                   For Appellant       : Mr.J.Narayanaswamy
                                                         Senior Standing Counsel

                                   For Respondent      : Mr.A.Thiyagarajan, Senior Counsel
                                                         for M/s.S.Ramesh Kumar




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                                                                                     T.C.A.No.885 of 2015



                                                      JUDGMENT

(Delivered by R.SURESH KUMAR, J.)

This Tax Case Appeal has been filed by the Revenue calling in question

the correctness of the order passed by the Income Tax Appellate Tribunal,

Chennai by raising the following substantial questions of law:

1. Whether on the facts and circumstances of the case, the Income Tax Appellate Tribunal was right in holding that provision for leave salary is allowable expenditure even though it is not actually paid before the due date of filing the return of income which is against the Section 43B(f)?

2. Whether on the facts and circumstances of the case, the Income Tax Appellate Tribunal was right in ignoring that the Section 43B(f) was only introduced in the Finance Act 2001 which came into effect from 01.04.2022?

2. It is brought to our notice by the learned Standing Counsel for the

appellant Revenue that in the instant case, as per the CBDT's Circular No.9 of

2024 dated 17.09.2024 the tax effect is said to be less than the monetary limit

imposed and therefore, the appeal can be disposed of, keeping the substantial

questions of law raised in this appeal open for adjudication at a later point of

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time.

3. Recording the aforesaid submission made by the learned Standing

Counsel for the appellant Revenue, this Tax Case Appeal is dismissed for low

tax effect, keeping open the substantial questions of law for adjudication at

appropriate stage. No costs. Consequently, connected miscellaneous petition

is closed.

                                                                   (R.S.K.,J.)     (C.S.N.,J.)
                                                                         21.10.2024

                   KST

                   To

The Income Tax Appellate Tribunal 'C' Bench, Chennai.

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R.SURESH KUMAR, J.

AND C.SARAVANAN, J.

KST

21.10.2024

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