Revenue filed an appeal under Section 260A. Court dismissed the appeal due to low tax effect below the threshold limit in CBDT Circular No.17/2019, leaving legal questions open.
The tax case appeal is dismissed. Liberty granted to file for restoration if tax effect exceeds the limit. No costs.
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 : 21.12.2020
CORAM
THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAM
AND
THE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN TAX CASE APPEAL No.738 of 2019
(heard through video conferencing)
Principal Commissioner of Income Tax-6, No.121, Nungambakkam High Road, Chennai-34. ...Appellant/Respondent
Vs
M/s.Sunstar Hotel & Estates Pvt. Ltd., Chennai-17. ...Respondent /Appellant
APPEAL under Section 260A of the Income Tax Act, 1961 against the order dated 07.6.2019 made in ITA.No.3269/Chny/2018 on the file of the Income Tax Appellate Tribunal, Chennai ‘D’ Bench for the assessment year 2013-14 against the order passed by the Commissioner of Income Tax (Appeals) – 15, Chennai 34, dated 30.08.2018 made in ITA.No. 640/2016-17 /CIT (A)-15 and against the order passed by the Deputy Commissioner of Income Tax, Corporate Circle 6 (2), Chennai 34 dated 31.03.2016 made in PAN AALCS5478E.
For Appellant : Mr.J.Narayanasamy,SSC For Respondent : Mr.Ashokpathy for M/s.Pass Associates
Judgment was delivered by T.S.SIVAGNANAM,J
This appeal, by the Revenue under Section 260A of the Income Tax Act, 1961 (for short, the Act), is directed against the order dated 07.6.2019 made in ITA.No.3269/Chny/2018 on the file of the Income Tax Appellate Tribunal, Chennai ‘D’ Bench for the assessment year 2013-14.
following substantial questions of law :
“1. Whether the Appellate Tribunal was right in holding that the expenses, which are not attributable to the business can be allowed as business expenses under Section 37 of the Income Tax Act ?
Sd/-
Assistant Registrar
//True Copy//
Sub Assistant Registrar
RS
To
1.The Income Tax Appellate Tribunal, Chennai ‘D’ Bench.
T.C.A.No.738 of 2019
BS(CO) GN(01/02/2021)
3 issues framed by the court
Whether the appeal satisfies the monetary threshold to be pursued pending a Central Board of Direct Taxes circular.
Whether the Appellate Tribunal was correct in allowing non-business expenses under Section 37.
Whether the Tribunal was correct in treating financial services income as business income.
2 provisions across 1 enactments
Principal Commissioner of Income Tax-6
M/s.Sunstar Hotel & Estates Pvt. Ltd.
T.S.Sivagnanam
V.Bhavani Subbaroyan
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
