Revenue filed appeal against ITAT order regarding Section 14A disallowance. Appeal dismissed as not pressed due to tax effect falling below statutory limit of 50 lakhs under CBDT Circular No.3/2018. Substantial questions of law kept open.
Appeal dismissed as not pressed due to tax effect being under Rs. 50 lakhs.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 19.12.2018
CORAM
THE HON'BLE DR.JUSTICE VINEET KOTHARI AND
THE HON'BLE DR.JUSTICE ANITA SUMANTH
Tax Case Appeal No.420 of 2009
Commissioner of Income Tax, Chennai. Appellant
Vs. M/s.Sowdambika Finance & Investments Pvt.Ltd. Respondent
Tax Case Appeal filed under Section 260-A of the Income Tax Act, 1961, against the order of the Income Tax Appellate Tribunal, Madras 'C' Bench, Chennai, dated 13.05.2008, made in ITA No.2436/Mds/2006 agaisnt the order of the commisioner of Income Tax (Appeals)V, M.G.Road, Chennai. 34 order dated 20.09.2006 made in ITAA.NO.45/05-06 and against the order of the Assistant Commisioner of Income Tax,company circle VI(3), Chennai, Order dated 10.03.2005 made in PAN/GIR NO.AACCS9335 H/SO-129 for the Assessment Year 2001-2002.
For Appellant : Mr.T.R.Senthil Kumar, Senior Standing Counsel. For respondent : No appearance
J U D G M E N T (Delivered by DR.VINEET KOTHARI,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, Madras 'C' Bench, Chennai, dated 13.05.2008, in ITA No.2436/Mds/2006, by raising the following substantial questions of law :
"(i) Whether on the facts and circumstances of the case, the Tribunal was right in holding that the expenditure amounting to Rs.37,01,203/- incurred for earning exempt dividend income cannot be disallowed by invoking retrospective provisions of Section
14A ?
(ii) Whether on the facts and circumstances of the case, the Tribunal was right in restricting the disallowance of expenditure at the rate of 2% of dividend income on basis of estimation ?
Sd/Assistant Registrar(CS)
//True Copy//
Sub Assistant Registrar
dixit To
The Income Tax Appellate Tribunal, Madras 'C' Bench, Chennai.
+1cc to Mr.T.R.Senthil Kumar , Advocate SR.No. 88714 TCA No.420 OF 2009 A.SK(19/02/2019)
2 issues framed by the court
Whether the Tribunal was right in disallowing expenditure incurred for earning exempt dividend income under Section 14A.
Whether the Tribunal was right in restricting the disallowance of expenditure at 2% of dividend income based on estimation.
2 provisions across 1 enactments
Commissioner of Income Tax, Chennai
M/s.Sowdambika Finance & Investments Pvt.Ltd
VINEET KOTHARI
ANITA SUMANTH
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
