The Commissioner Of Income Tax Chennai v. M/S.kannappan Iron And Steel Co Pvt Ltd

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 04.06.2020 THE HON'BLE DR.JUSTICE VINEET KOTHARIANDTHE HON'BLE MR.JUSTICE R.SURESH KUMAR Tax Case (Appeal) No.794 of 2013 The Commissioner of Income TaxChennai...Appellant / AppellantVs. M/s.Kannappan Iron and Steel Co Pvt Ltd9/110, Kalidas Road, RamnagarCoimbatore - 641 009...Respondent / Respondent Tax Case Appeal filed under Section 260A of the Income TaxAct, 1961 against the common order of the Income Tax AppellateTribunal 'D' Bench, Chennai dated 12.12.2011 in ITANo.1600/Mds/2011, against the order dated 13/07/2011 by theCommissioner of Income Tax (Appeals)-1 Coimbatore, made inAppeal No.152/2008-2009 and the against the assessment orderdated 30/12/2010 Addl.Commissioner of Income – Tax Company –Circle 1(2), Coimbatore, in PAN No./GIRNO . This Tax Case Appeal has been filed by the Revenue callingin question the correctness of the order passed by the IncomeTax Appellate Tribunal, 'D' Bench, Chennai, by raising thefollowing substantial questions of law:“ 1. Whether on the facts and circumstances of thecase, the Income Tax Appellate Tribunal was right inholding that the expenditure incurred on productdevelopment is revenue in nature and not capital?2. Whether on the facts and in the circumstances ofthe case, the Income Tax Appellate Tribunal has enoughmaterial to conclude that the expenditure was revenueallowable under Section 37 of the Income Tax Act?” https://hcservices.ecourts.gov.in/hcservices/ 2. When the matter was taken up for hearing, the learnedStanding Counsel brought to our notice the Circular instructionissued by the Central Board of Direct Taxes vide CircularNo.17/2019 dated 8th August 2019, wherein, it is stipulated thatappeals shall not be filed/pursued by the Department before theHigh Court in cases where the tax effect does not exceedRs.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 appeal filedby the Revenue is dismissed as not pressed, keeping open thesubstantial questions of law for determination in an appropriatecase. Sd/- Assistant Registrar //True Copy// Sub Assistant Registrar KSTTo1.Income Tax Appellate Tribunal'D' Bench,Chennai. 2.The Commissioner of Income Tax(Appeals)1Coimbatore. 3. The Addl.commissioner of Income – Tax,Company Circle 1(2),Coimbatore. RLD(CO)RMP(22/07/2020) T.C.(A) No.794 of 2013