The Commissioner Of Income Tax,Coimbatore v. M/S.sakthi Sugars Ltd.,180 Race Course Road,Coimbatore-18

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 3.12.2018 CORAM THE HON'BLE DR.JUSTICE VINEET KOTHARIANDTHE HON'BLE DR.JUSTICE ANITA SUMANTH Tax Case (Appeal) No.941 of 2009 The Commissioner of Income Tax,Coimbatore. Appellant/Respondent Vs. M/s.Sakthi Sugars Ltd.,180 Race Course Road,Coimbatore-18. Respondent/Appellant Tax Case Appeal filed under Sec. 260A of the Income Tax Act,1961 against the order of the Income Tax Appellate Tribunal,Madras 'D' Bench, Chennai, dated 1.2.2008 in ITANo.828/Mds/2003, against the proceedings of the AssistantCommissioner of Income Tax, Company Circle1(1), Coimbatore,dated 22/03/2004 made in No.CV-0162/CO.I(1) CBE/03-04, andagainst the order passed by the Commissioner of Income-Tax-1,Coimbatore, dated 25/03/2003 made in C.No.120(9)/02-03/CTI/CBE. For Appellant : Ms.K.G.Usharani, for Mr.T.R.Senthilkumar, Senior Standing CounselFor Respondent : Mr.Venkatanarayanan for Mr.Subbaraya Aiyar JUDGMENT (Judgment of the court was delivered by DR.ANITA SUMANTH,J.)The Tax Case (Appeal) relates to Assessment Year 1998-1999and has been admitted on the following substantial question oflaw:"Whether, on the facts and in the circumstances ofthe case, the Tribunal was right in annulling therevision order passed under Section 263 of the IncomeTax Act?"2.HeardMs.V.J.Usharani,learnedcounselforMr.T.R.Senthilkumar, learned Senior Standing Counsel for theRevenue and Mr.Venkataraghavan, learned counsel for Mr.SubbarayaAyyar Padmanabhan for the assessee. https://hcservices.ecourts.gov.in/hcservices/ 3. Learned counsel appearing for the Revenue fairly concedesthat the question referred is covered against the Revenue andin favour of the assessee by judgments of the Supreme Court inthe case of Malabar Industrial Corporation Limited v. CIT (243ITR 83) and Commissioner of Income Tax v. Max India Limited((2007) 295 ITR 282) on the question of exercise of jurisdictionunder Section 263 of the Income Tax Act. 4. She also brings to the notice of the court that onmerits, the question of allowability of prior period expenses inthe context of a revision under Section 263 of the Income TaxAct has been specifically considered by a Division Bench ofthis court in Tamil Nadu Cements Corporation Limited v. JointCommissioner of Income Tax ((2012) 349 ITR 58) and held infavour of the assessee. 4. In the light of the above, the question is answeredagainst the Revenue and in favour of the assessee. The Tax Case(Appeal) is dismissed. No order as to costs. Sd/- Assistant Registrar(CO) //True Copy// Sub Assistant Registrar ssk. 1.The Income Tax Appellate Tribunal,Madras “D” Branch,Chennai. 2.The Assistant Commissioner of Income TaxCompany Circle I(1),Coimbatore. 3.The Commissioner of Income Tax-1,Coimbatore. +1cc to Mr.T.R.Senthil Kumar, Advocate sr.no.83216+1cc to Mr.Subbaraya Aiyar, Advocate sr.no.83221 ev(co)nr 09/01/2019