The Commissioner of Income-tax-I, Coimbatore v. Engi Ultra Industries Ltd
[Citation -2020-LL-0214-78]
| Citation | 2020-LL-0214-78 |
|---|---|
| Appellant Name | The Commissioner of Income-tax-I, Coimbatore |
| Respondent Name | Engi Ultra Industries Ltd. |
| Court | HIGH COURT OF MADRAS |
| Relevant Act | Income-tax |
| Date of Order | 14/02/2020 |
| Judgment | View Judgment |
| Keyword Tags | monetary limit • sister concern • amalgamation • tax effect • merger • bad debt |
| Bot Summary: | Whether, on the facts and in the circumstances of the case, the Tribunal is correct in observing that the so written-off amount, if not, allowable as deduction under section 36 is to be allowed under section 37 of the Act, especially when there is a special provision for deduction of debts 3. Whether, on the facts and in the circumstances of the case, the Income tax Appellate Tribunal is correct in holding that the bad debts are covered by Section 37 of the Act by relying only on the self serving accounting by the assessee, when the same is not laid out and expended wholly for the business of the assessee 2. When the matter was taken up for 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 8th August 2019, wherein, it is stipulated that appeals shall not be Page 2 of 4 Order in TCA No.670 of 2011 dated 14.02.2020 filed/pursued by the Department before the High Court in cases where the tax effect does not exceed Rs.1,00,00,000/-. In the instant case, 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. 14.02.2020 arr Note to Office: Copy of this order may be sent to both parties. |