The Commissioner Of Income Taxcompany Circle Iii, Chennai v. M/S.tamil Nadu Small Industriescorporation Ltd., Thiru.vi.ka.industrialestate, Guindy, Chennai-32

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 21.10.2024 CORAM THE HON'BLE MR.JUSTICE R.SURESH KUMARANDTHE HON'BLE MR.JUSTICE C.SARAVANAN Tax Case Appeal No.884 of 2015and M.P.No.1 of 2015 The Commissioner of Income TaxCompany Circle III, Chennai. ....Appellant Vs. M/s.Tamil Nadu Small IndustriesCorporation Ltd., Thiru.Vi.Ka.IndustrialEstate, Guindy, Chennai-32.....Respondent----- Tax Case Appeal filed under Section 260A of the Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal, 'C' Bench Chennai, dated 19.12.2014 made in I.T.A.No.1566/Mds/2014. For Appellant : Mr.J.Narayanaswamy Senior Standing Counsel For Respondent : Mr.A.Thiyagarajan, Senior Counsel for M/s.S.Ramesh Kumar J U D G M E N T 1 of 4 (Delivered by R.SURESH KUMAR, J.) This Tax Case Appeal has been filed by the Revenue calling in question the correctness of the order passed by the Income Tax Appellate Tribunal, Chennai by raising the following substantial questions of law: 1. Whether on the facts and circumstances of the case, the Income Tax Appellate Tribunal was right in holding that provision for leave salary is allowable expenditure even though it is not actually paid before the due date of filing the return of income which is against the Section 43B(f)?the Income Tax Appellate Tribunal was right in holding that provision for leave salary is allowable expenditure even though it is not actually paid before the due date of filing the return of income which is against the Section 43B(f)? 2. Whether on the facts and circumstances of the case, the Income Tax Appellate Tribunal was right in ignoring that the Section 43B(f) was only introduced in the Finance Act 2001 which came into effect from 01.04.2022?the Income Tax Appellate Tribunal was right in ignoring that the Section 43B(f) was only introduced in the Finance Act 2001 which came into effect from 01.04.2022? 2. It is brought to our notice by the learned Standing Counsel for the appellant Revenue that in the instant case, as per the CBDT's Circular No.9 of 2024 dated 17.09.2024 the tax effect is said to be less than the monetary limit imposed and therefore, the appeal can be disposed of, keeping the substantial questions of law raised in this appeal open for adjudication at a later point of time. 2 of 4 T.C.A.No.884 of 2015 3. Recording the aforesaid submission made by the learned Standing Counsel for the appellant Revenue, this Tax Case Appeal is dismissed for low tax effect, keeping open the substantial questions of law for adjudication at appropriate stage. No costs.Consequently, connected miscellaneous petition is closed. NCS : Yes/NoKST (R.S.K.,J.) (C.S.N.,J.) 21.10.2024 1/2 To The Income Tax Appellate Tribunal'C' Bench, Chennai. 3 of 4 https://www.mhc.tn.gov.in/judis 4 of 4 R.SURESH KUMAR, J.ANDC.SARAVANAN, J. KST T.C.A.No.884 of 2015 21.10.2024