The Commissioner Of Income Tax, Chennai v. M/S.forward Leather Co

In the High Court of Judicature at Madras Coram : The Honourable Mr.Justice T.S.SIVAGNANAM and The Honourable Mrs.Justice V.BHAVANI SUBBAROYAN The Commissioner of Income Tax, Chennai...Appellant/AppellantVsM/s.Forward Leather Co....Respondent/ Respondent Chennai 03. APPEAL under Section 260A of the Income Tax Act, 1961against the order dated 18.12.2009 in ITA No.1071/Mds/2009on the file of the Income Tax Appellate Tribunal Madras 'D'Bench for the assessment year 2006-07 against the order ofthe commissioner of Income Tax (Appeals)VI Chennai dated22.04.2009 in Appeal No.CIT(a)IV/CHE/131/08-09 against theAdditional Commissioner of Income Tax Range X Chennai. -06.dated 29.12.2008 made in PAN/GIR NO.AAAFF1046m Assessmentyear of 2006-2007. For Appellant : Mr.J.Naresh KumarFor Respondent :Mr.Ashok Pathy for M/s.Pass Associates Judgment was delivered by T.S.SIVAGNANAM,J We have heard the learned counsel on either side. 2. The Revenue has preferred this appeal challengingthe order dated 18.12.2009 passed by the Income TaxAppellate Tribunal in ITA.No.1071/ Mds/2009 for theassessment year 2006-07. 3. The above appeal has been admitted on 25.10.2010 onthe following substantials question of law :“i. Whether, on the facts and inthe circumstances of the case, theIncome Tax Tribunal is right in law indeleting the addition of Rs.16,25,000/- https://hcservices.ecourts.gov.in/hcservices/ made on account of diversion ofinterestbearingfundsforinvestments ? ii. Whether the Tribunal was rightin allowing interest on borrowed fundsutilized for the purchase of a Ferraricar for personal use of the partner andfor purchase of shares in ConceriaVirgina Chennai P. Ltd. ? andiii. Whether, on the facts and inthe circumstances of the case, theIncome Tax Tribunal is right in law indeleting the disallowance on guesthouse amounting to Rs.12,41,397 ?” 4. It may not be necessary for us to answer the abovesubstantial questions of law, as the monetary limitinvolved in this appeal is lesser than the amount fixed bythe circular instructions issued by the Central Board ofDirect Taxes. This Court had an occasion to consider theeffect of that circular in TCA.No.395 of 2018 dated24.7.2018, the relevant portions of which are as follows : “4. Further, it is relevant tonote that by Circular No.3/2018, dated11.7.2018, monetary limit has furtherbeenincreasedandappealsbemaintainable before the High Courts. Ithas been increased to Rs.50,00,000/-.Hence, viewed from any angle, thisappeal could not have been filed.5. Thus, by applying the aboveCircular issued by the CBDT, thisappeal ought not to have been filed bythe Revenue and hence, for that reason,this tax case appeal is dismissed andthe substantial questions of law,framed for consideration, are leftopen.” 5. In the light of the above, the above appeal isdismissed. No costs. The substantial questions of law areleft open for consideration. https://hcservices.ecourts.gov.in/hcservices/ To The Income Tax Appellate Tribunal, Madras 'D' Bench. 2.the commissioner of Income Tax (Appeals)IV Chennai.3.The Additional commissioner of Income Tax Range X,Chennai 63.The Additional commissioner of Income Tax Range X,Chennai 6 +1cc to Mr. T.RAVI KUMAR, Advocate SR.No. 64740 A.SK(10/01/2019) TCA.No.867 of 2010