The High Court of Madras dismissed a Tax Case Appeal filed under Section 260A of the Income Tax Act for low tax effect, keeping the substantial questions of law regarding Section 2(22)(e) open for future adjudication.
Appeal dismissed for low tax effect; substantial questions of law kept open.
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.350 of 2023
I N THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 19.10.2024
CORAM
THE HON'BLE MR.JUSTICE R.SURESH KUMAR AND THE HON'BLE MR.JUSTICE C.SARAVANAN
Tax Case Appeal No.350 of 2023
The Principal Commissioner of Income Tax-I Chennai.
.... Appellant
Vs.
V.Sriram (HUF)
.... Respondent
Tax Case Appeal filed under Section 260A of the Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal, 'B' Bench Chennai, dated 22.02.2023 made in I.T.A.No.863/Chny/2022.
For Appellant : Mr.T.Ravikumar Senior Standing Counsel
J U D G M E N T
(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:
T.C.A.No.350 of 2023
"(i) Whether on the facts and in the circumstances of the Company, Tribunal was justified in holding that provisions of Section 2(22)(e) of the Income Tax Act, 1961 are not applicable to the Assessee?
(ii) Is not the reasoning and finding of the Tribunal bad, by holding that the transaction between the Assessee and the IEIL could be treated as a running current account between the shareholder and the company and that it was not a loan or advance in order to apply Section 2(22)(e) of the Income Tax Act especially when the Assessee did not provide the documentary proof to substantiate the same?"
T.C.A.No.350 of 2023
the affirmative. Therefore, based on such instructions from the Revenue, the
learned Standing Counsel submits that this appeal can be disposed of.
(R.S.K.,J.) (C.S.N.,J.) 19.10.2024
NCS : Yes/No Index : Yes/No KST
To
The Income Tax Appellate Tribunal 'B' Bench, Chennai.
T.C.A.No.350 of 2023
R.SURESH KUMAR, J. AND C.SARAVANAN, J.
KST
T.C.A.No.350 of 2023
19.10.2024
The Principal Commissioner of Income Tax-I, Chennai
V.Sriram (HUF)
R.SURESH KUMAR
C.SARAVANAN
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
