The Commissioner of Income-tax, Chennai v. Chennai Petroleum Corporation Limited
[Citation -2020-LL-0602-23]

Citation 2020-LL-0602-23
Appellant Name The Commissioner of Income-tax, Chennai
Respondent Name Chennai Petroleum Corporation Limited
Court HIGH COURT OF MADRAS
Relevant Act Income-tax
Date of Order 02/06/2020
Assessment Year 2005-06
Judgment View Judgment
Keyword Tags expenditure incurred • welfare expenses • monetary limit • social welfare • tax effect


Judgt. dt.02.06.2020 in T.C.A.851 of 2013 [The Commissioner of Income Tax V. M/s.Chennai Petroleum Corporation Limited] 1/4 IN HIGH COURT OF JUDICATURE AT MADRAS DATED:02.06.2020 CORAM HON'BLE DR.JUSTICE VINEET KOTHARI AND HON'BLE MR.JUSTICE R.SURESH KUMAR Tax Case Appeal No.851 of 2013 Commissioner of Income Tax, Chennai. ... Appellant Vs. M/s.Chennai Petroleum Corporation Limited, Refinery House, Manali, Chennai - 600 068. ... Respondent Tax Case Appeal filed under Section 260A of Income Tax Act, 1961 against order of Income Tax Appellate Tribunal, Madras 'D' Bench, Chennai, dated 25.07.2012 made in ITA No.439/Mds/2009. For Appellant : Mr.T.Ravikumar Senior Standing Counsel (Taxes) For Respondent : M/s.R.Venkata Narayanan for Subbarayan Iyer Padmanabhan JUDGMENT (Delivered by DR.VINEET KOTHARI,J.) This Tax Case Appeal has been filed by Revenue, calling in question correctness of order passed by Income Tax Appellate Tribunal, Madras 'D' Bench, Chennai, dated 25.07.2012, in http://www.judis.nic.in Judgt. dt.02.06.2020 in T.C.A.851 of 2013 [The Commissioner of Income Tax V. M/s.Chennai Petroleum Corporation Limited] 2/4 ITA No.439/Mds/2009, for Assessment Year 2005-06, by raising following substantial questions of law: "(i)Whether on facts and in circumstances of case, Income Tax Appellate Tribunal was right in holding that expenditure incurred towards social and community welfare expenses amounting to Rs.109.88 lakhs are allowable expenditure? (ii) Whether on facts and in circumstances of case, Income Tax Appellate Tribunal was right in holding that social welfare expenditure is allowable even though same is not connected with business of assessee?" 2. When matter is taken up for hearing, learned Senior Standing Counsel brought to our notice Circular instruction issued by Central Board of Direct Taxes vide Circular No.17/2019 dated 8th August 2019, wherein, it is stipulated that appeal shall not be filed/pursued by Department before High Court in cases where tax effect does not exceed Rs.1,00,00,000/- (Rupees One Crore). http://www.judis.nic.in Judgt. dt.02.06.2020 in T.C.A.851 of 2013 [The Commissioner of Income Tax V. M/s.Chennai Petroleum Corporation Limited] 3/4 3. In instant case, tax effect is said to be less than monetary limit imposed and therefore, Appeal filed by Revenue is dismissed, as withdrawn, keeping open substantial questions of law for determination in appropriate cases. No costs. (V.K.,J.) (R.S.K.,J.) 02.06.2010 Index : Yes/No Internet : Yes/No sgl/tar To Income Tax Appellate Tribunal, Madras 'D' Bench, Chennai. http://www.judis.nic.in Judgt. dt.02.06.2020 in T.C.A.851 of 2013 [The Commissioner of Income Tax V. M/s.Chennai Petroleum Corporation Limited] 4/4 DR.VINEET KOTHARI, J. and R.SURESH KUMAR, J. tar. T.C.A.No.851 of 2013 02.06.2020 http://www.judis.nic.in Commissioner of Income-tax, Chennai v. Chennai Petroleum Corporation Limited
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