The Commissioner of Income-tax, Chennai v. R.K. Swamy BBDO Pvt. Ltd
[Citation -2020-LL-0113-81]
Citation | 2020-LL-0113-81 |
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Appellant Name | The Commissioner of Income-tax, Chennai |
Respondent Name | R.K. Swamy BBDO Pvt. Ltd. |
Court | HIGH COURT OF MADRAS |
Relevant Act | Income-tax |
Date of Order | 13/01/2020 |
Judgment | View Judgment |
Keyword Tags | monetary limit • sister concern • trading loss • tax effect • bad debt • interest on borrowed fund • commercial expediency |
Bot Summary: | Batch Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in law in holding that, the rental amounts paid to another Company under the same management in excess of the amounts paid by other tenants of the same building should not be disallowed under Section 40A(2) of the Act Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in law in holding that, the interest on borrowed amounts diverted to its sister concern as rental advances cannot be disallowed and the advances should be treated as having been made for commercial expediency 2. When the matter is taken up for final hearing, the learned Standing Counsel brought to our notice the Circular instruction issued by the Central Board of Direct Taxes vide Circular No.17/2019 dated 08.08.2019, wherein it is stipulated that appeals shall not be filed/pursued by the Department before the High Court in cases where the tax effect does not exceed Rs.1 Crore. In the instant cases, the tax effect is said to be less than the monetary limit imposed and therefore, the appeals filed by the Revenue is dismissed as not pressed, keeping open the substantial questions of law for determination in an appropriate case. |