Revenue appeal against Tribunal's finding that building construction on leasehold land was revenue expenditure was dismissed as covered by low tax effect under Circular No.9/2024 dated 17.09.2024, with substantial questions of law left open and 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.67 of 2022
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.67 of 2022
The Commissioner of Income Tax Circle -1, Tirupur.
.. Appellant
Vs.
M/s.Eastman Exports Global Clothing Pvt. Ltd. No.10, 12, 2nd Street Kumar Nagar South, Tirupur 641 603 PAN: AACCC 0952 E
.. Respondent
Prayer: Appeal filed under Section 260-A of the Income Tax Act, 1961, against the order of Income Tax Appellate Tribunal, Madras “D” Bench, Chennai dated 09.08.2021 passed in I.T.A.No.2227/CHNY/2018.
For the Appellant : Mr.Karthik Ranganathan Senior Standing Counsel
For the Respondent : Ms.A.Sharren for Mr.R.Sivaraman
JUDGMENT
(Order of the Court was made by R.SURESH KUMAR, J.) The present tax case appeal was admitted on 21.02.2022 by
this Court on the following substantial questions of law:-
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T.C.A.No.67 of 2022
"1. Whether the Income Tax Appellate Tribunal was justified in holding that expenditure on construction of building on leasehold land is revenue expenditure, whereas the said expenditure is of capital in nature?
2. Whether the Income Tax Appellate Tribunal was right in ignoring the fact that the enduring benefit, a settled concept had flown to the assessee and hence, the expense was capital in nature?
3. Whether the Income Tax Appellate Tribunal was right in holding that the construction of a building as revenue expense, when even renovation or extension to such building has been defined as a capital expense in Explanation 1 to Section 32(1) of the Income Tax Act?"
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T.C.A.No.67 of 2022
low tax effect and the substantial questions of law arising in this appeal are kept open to be decided at the later point of time. There shall be no order as to costs.
(R.S.K., J.) (C.S.N, J) 15.10.2024
Neutral Citation:Yes/No
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T.C.A.No.67 of 2022
R. SURESH KUMAR, J. AND C. SARAVANAN, J.
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T.C.A.No.67 of 2022
15.10.2024
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2 provisions across 1 enactments
The Commissioner of Income Tax Circle -1, Tirupur
M/s.Eastman Exports Global Clothing Pvt. Ltd.
R. Suresh Kumar
C. Saravanan
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
