Commissioner Of Income Tax,Chennai v. M/S.mercantile Credit Corporation Ltd
High Court
25 Jan 2017 In favour of: Assessee
Forum / Bench
High Court · hc_cis_mas
Parties
Commissioner Of Income Tax,Chennai v. M/S.mercantile Credit Corporation Ltd
Date of order
25 Jan 2017
Assessment year(s)
—
Outcome
Dismissed
The order — as passed by the High Court
Case summary
In Commissioner Of Income Tax,Chennai v. M/S.mercantile Credit Corporation Ltd, the High Court (2017) dismissed the appeal. The decision went in favour of the assessee.
Issue: 3.Whether in the facts and circumstances of the case, the assets which are not used for any income earning activity by the assessee, but left with the lessees even after the expiry of the lease can be said to be used in the business of the assessee?” 2.
Decision: In the instant case, the tax effect is less than the monetary limit imposed and the appeal is, hence, dismissed as not pressed, preserving the substantial question of law for determination in an appropriate case.
Summary auto-generated from the order below — read the full judgment for the complete reasoning.
Sections referenced in this judgment
IN THE HIGH COURT OF JUDICATURE AT MADRAS
25.01.2017
Coram:
The Hon'ble Mr.Justice HULUVADI G.RAMESHANDThe Hon'ble Dr. Justice ANITA SUMANTH
T.C.A. No.511 of 2007
Commissioner of Income Tax,Chennai.
.. Appellant
Versus
M/s.Mercantile Credit Corporation Ltd.,
36-40, Armenian Street,
Chennai 600 001... Respondent
Tax Case Appeal filed under Section 260A of the Income Tax Act, 1961 against the Order of the Income Tax Appellate Tribunal Madras 'A' Bench, dated 31.03.2006 in ITA. No.1792/Mds/1996.
For Appellant .. Mr.T.R.Senthil Kumar
For Respondent .. Mr.R.Vijayaraghavan
for M/s.Subbaraya Aiyar
-----
JUDGMENT
The Tax Case Appeal filed by the Revenue calling in question the
correctness of the order passed by the Income Tax Appellate Tribunal
Madras 'A' Bench, dated 31.03.2006 in ITA. No.1791/Mds/1996, has been admitted on 20.06.2007 for consideration of the following substantial questions of law:
“Whether in the facts and circumstances of the case, the Tribunal was right in holding that the assessee is entitled to depreciation on assets which were retained by the lessees even after expiry of the lease?
2.Whether in the facts and circumstances of the case, the Tribunal was right in holding that the assessing officer has to prove the non user of the assets to deny depreciation?
3.Whether in the facts and circumstances of the case, the assets which are not used for any income earning activity by the assessee, but left with the lessees even after the expiry of the lease can be said to be used in the business of the assessee?”
2. Circular instruction issued by the Central Board of Direct Taxes
No.21/2015, dated 10.12.2015 stipulates that appeals shall not be filed/ pursued by the Department before the High Court in cases where the tax effect does not exceed Rs.20 lakhs. In the instant case, the tax effect is less than the monetary limit imposed and the appeal is, hence, dismissed as
not pressed, preserving the substantial question of law for determination in
an appropriate case. No costs.
(H.G.R.,J) (A.S.M.,J)2/2
25.01.2017
vga
http://www.judis.nic.in
HULUVADI G.RAMESH, JANDDr.ANITA SUMANTH,Jvga
T.C.A.No.511 of 2007
25.01.2017
2/2
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