Tc/968/2008 Of Commissioner Of Income Tax-Iii v. Southern Polymers P Ltd
High Court
25 Jan 2017 In favour of: Assessee
Forum / Bench
High Court · hc_cis_mas
Parties
Tc/968/2008 Of Commissioner Of Income Tax-Iii v. Southern Polymers P Ltd
Date of order
25 Jan 2017
Assessment year(s)
—
Outcome
Dismissed
The order — as passed by the High Court
Case summary
In Tc/968/2008 Of Commissioner Of Income Tax-Iii v. Southern Polymers P Ltd, the High Court (2017) dismissed the appeal. The decision went in favour of the assessee.
Issue: (ii) Whether in the facts and in the circumstances of the case, the Tribunal was right in holding that the amounts given to the parties were in the course of money lending business, and as such the administrative expenditure could be deducted as business expenditure?" 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 questions of law for determination in an appropriate case.
Summary auto-generated from the order below — read the full judgment for the complete reasoning.
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 25.1.2017
CORAM
THE HON'BLE MR.JUSTICE HULUVADI G. RAMESHAND
THE HON'BLE DR.JUSTICE ANITA SUMANTH
Tax Case (Appeal) No.968 of 2008
Commissioner of Income Tax-III,Chennai.... Appellant
Southern Polymers (P) Ltd.No.12, III Main Road,Kasturba Nagar, Adyar,Chennai 600 020....Respondent
Tax Case Appeal filed under Sec. 260A of the Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal, Madras 'C' Bench, Chennai, dated 5.10.2007 in ITA No.799/Mds/2003.
For Appellant
: Mr.J.Narayanasamy Standing Counsel
For Respondent
: Mr.R.Sivaraman
JUDGMENT
(Judgment of the Court was delivered by Dr.Anita Sumanth, J.,)
The Tax Case Appeal filed by the Revenue calling in
question the correctness of the order passed by the Income Tax Appellate Tribunal, Madras 'C' Bench, Chennai, dated 5.10.2007 in
ITA No.799/Mds/2003, has been admitted on 17.7.2008 for consideration of the following substantial questions of law:
"(i) Whether in the facts and in the circumstances of
the case, the Tribunal was right in holding that the assessee is in the business of money lending when it is a manufacturing company and the only amounts lent were to sister concerns?
(ii) Whether in the facts and in the circumstances of
the case, the Tribunal was right in holding that the amounts given to the parties were in the course of money lending business, and as such the administrative expenditure could be deducted as business expenditure?"
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 questions of law for determination in an appropriate case. No cost.
ssk.
(H.G.R.,J.) (A.S.M.,J.) 25.1.2017.
Index: Yes/No.Internet: Yes/No.
HULUVADI G. RAMESH, J.and
Dr.ANITA SUMANTH,J.
ssk.
T.C.A.No.968 of 2008
25.1.2017.
http://www.judis.nic.in
This page reproduces a public-domain court order (Section 52(1)(q)(iv), Copyright Act 1957). Explanations are EaseValue's original analysis. Always read the original order.
Disclaimer: General information only — not legal, tax or professional advice, and no advocate/CA–client relationship is created. AI-generated summaries may contain errors and must be verified against the original court order. EaseValue accepts no liability for reliance on this content. Not a solicitation.
Full disclaimer & Terms.
EaseValue