Tax Case (Appeal) v. Delivered By Dr.vineet Kothari,J

IN THE HIGH COURT OF JUDICATURE AT MADRAS CORAMTHE HON'BLE DR.JUSTICE VINEET KOTHARIANDTHE HON'BLE MR.JUSTICE R.SURESH KUMAR Tax Case (Appeal) No.197 of 2013 Commissioner of Income Tax IIIChennaiAppellant Vs. M/s.Samalpatti Power Co (P) Ltd.,Sreyas Virat,No.14, III Cross Street,R.A.Puram, Chennai 28Respondent Tax Case Appeal filed under Section 260A of the IncomeTax Act, 1961 against the order of the Income Tax AppellateTribunal, 'A' Bench, Chennai, dated 30.07.2012 made in ITANo.381/Mds/2011, A.Y-2003-04 ITA No.381/Mds/2011 against thecommissioner of Income Tax(Appeals)V, Chennai in ITA No.443 &442 of 2008-09, and 450/2009-10 dt.25/11/2010 in PAN/GIRNo. for the Assessment year 2003-04, 2006-2007 and2007-2008 against the Assistant Commissioner of Income Tax,Company Circle VI(1), Chennai-34, in PAN AADC51893D for theAssessment year 2003-04 order dt-30/12/2008. For Appellant : Mr.J.Narayanasawmy Senior Standing Counsel For Respondent : Mr.M.P.Senthil Kumar (Delivered by DR.VINEET KOTHARI,J) This Tax Case Appeal has been filed by the Revenue,calling in question the correctness of the order passed by theIncome Tax Appellate Tribunal, 'A' Bench, Chennai, dated30.07.2012, in I.T.A.No. 381/ Mds/2011, by raising thefollowing substantial questions of law: "(i) Whether under the facts andcircumstances of the case, the Income TaxAppellate Tribunal was correct in 1 https://hcservices.ecourts.gov.in/hcservices/ entertaining the claim for deduction ofprovision for rebate and other receivablesamounting to Rs.15,59,85,460/- though theAssessee did not raise that issue beforethe Assessing Officer and the Commissionerof Income Tax (Appeals) and the claim nothaving been made through a valid return ofincome? (ii) Whether under facts andcircumstances of the case, the Income TaxAppellate Tribunal was right in notholding that the provision for rebate andother receivables debited by the Assesseeto its profit and loss account is only aprovision and not written off andtherefore is not allowable as deduction incomputing income under normal provisionsof the Income Tax Act?(iii) Whether under facts andcircumstances of the case, the Income TaxAppellate Tribunal was right in remittingthe issue back to the Assessing Officerwith regard to the claim for deduction ofprovision for rebate though the Tamil NaduElectricity Board is liable to pay underthe contractual obligations and that theAssessee had not issued any credit noteeven though TNEB did not pay the same?(iv) Whether under facts andcircumstances of the case, the Income TaxAppellate Tribunal was right in remittingthe issue back to the Assessing Officerwith regard to the claim for deduction ofprovision for auxillary consumption anddividend distribution tax holding that thesame are credited on actual basis and noton ad hoc basis? (v) Whether under facts andcircumstances of the case, the Income TaxAppellate Tribunal was right in deletinginterest under Section 234B and 234C arenot to be levied on the additional taxpayable on account of retrospectiveamendment to Section 115 JB, in theabsence of any provision for exclusion oflevy of interest in such circumstances?" 2. When the matter is taken up for hearing, learnedSenior Standing Counsel brought to our notice the Circularinstruction issued by the Central Board of Direct Taxes vide Circular No.17/2019 dated 8th August 2019, wherein, it isstipulated that appeals shall not be filed/pursued by theDepartment before the High Court in cases where the tax effectdoes not exceed Rs.1,00,00,000/- (Rupees One Crore). 3. In the instant case, the tax effect is said to be lessthan the monetary limit imposed and therefore, the Appealfiled by the Revenue is dismissed, as withdrawn, keeping openthe substantial questions of law for determination inappropriate cases. No costs. Sd/- Assistant Registrar //True Copy// Sub Assistant RegistrartarTo 2. When the matter is taken up for hearing, learnedSenior Standing Counsel brought to our notice the Circularinstruction issued by the Central Board of Direct Taxes vide Circular No.17/2019 dated 8th August 2019, wherein, it isstipulated that appeals shall not be filed/pursued by theDepartment before the High Court in cases where the tax effectdoes not exceed Rs.1,00,00,000/- (Rupees One Crore). 3. In the instant case, the tax effect is said to be lessthan the monetary limit imposed and therefore, the Appealfiled by the Revenue is dismissed, as withdrawn, keeping openthe substantial questions of law for determination inappropriate cases. No costs. Sd/- Assistant Registrar //True Copy// Sub Assistant RegistrartarTo 1.The Income Tax Appellate Tribunal, 'A' Bench, Chennai.2.The Commissioner of Income Tax (Appeals)V, Chennai. 3.The Assistant Commissioner of Income, Company Circle VI(1), Chennai-34.4.The Assistant Registrar Income Tax Appellate Tribunal, Shastri Bhavan, IIIrd floor, Besant Nagar, Chennai-600 090. T.C.(A).No.197 of 2013RJI(CO)CB(17/06/2020)