The High Court dismissed the appeal against the ITAT order. The court ruled the matter was covered by the Low Tax Effect under Circular No. 9/2024. The substantial questions of law were kept open for future decision with no costs.
Appeal dismissed; substantial questions of law kept open; no order as to 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.
T.C.A.No.18 of 2023
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 15.10.2024
CORAM :
THE HONOURABLE MR.JUSTICE R. SURESH KUMAR AND THE HONOURABLE MR.JUSTICE C. SARAVANAN
T.C.A.No.18 of 2023
Commissioner of Income Tax Corporate Circle – 1, Coimbatore.
.. Appellant
Vs.
Super Sales India Limited 34-A, Kamraj Road Coimbatore 641 018 PAN: AADCS 0650 A
.. Respondent
Prayer: Appeal filed under Section 260-A of the Income Tax Act, 1961, against the order of Income Tax Appellate Tribunal “D” Bench, Chennai dated 27.09.2022 passed in I.T.A.No.2093/CHNY/2017.
For the Appellant : Mr.Karthik Ranganathan Senior Standing Counsel
For the Respondent : Mr.R.Venkatanarayanan for M/s.Subbaraya Aiyar Padmanabhan
JUDGMENT
(Order of the Court was made by R.SURESH KUMAR, J.) The present tax case appeal was admitted on 11.01.2023 by
this Court on the following substantial questions of law:-
Page 1 of 4
T.C.A.No.18 of 2023
"1. Whether on the facts and circumstances of the case, the ITAT was right in allowing depreciation amounting to Rs.2,19,94,875/- on account of foreign exchange fluctuation loss relating to foreign currency term loan availed for purchase of windmill and the same was capitalized by the assessee its books of accounts?
2. Whether on the facts and circumstances of the
case and in law, the ITAT was justified in allowing the appeal of the assessee without appreciating the fact that capital expenditure incurred by the assessee for purchase of windmill cannot be treated as expenditure u/s. 36 or 37 of the Income Tax Act?"
Page 2 of 4
T.C.A.No.18 of 2023
(R.S.K., J.) (C.S.N, J) 15.10.2024
Neutral Citation:Yes/No
drm
Page 3 of 4
T.C.A.No.18 of 2023
R. SURESH KUMAR, J. AND C. SARAVANAN, J.
(drm)
T.C.A.No.18 of 2023
15.10.2024
Page 4 of 4
2 issues framed by the court
Whether the ITAT was right in allowing depreciation on foreign exchange fluctuation loss related to a capitalized windmill loan?
Whether capital expenditure for purchase of a windmill can be treated as expenditure under Section 36 or 37 of the Income Tax Act?
3 provisions across 1 enactments
Commissioner of Income Tax Corporate Circle – 1, Coimbatore
Super Sales India Limited
R. SURESH KUMAR
C. SARAVANAN
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
